hello everyone welcome and thank you for joining today’s webinar entitled 2016 retail banking trends and predictions before we begin I’d like to go over some housekeeping this session is being recorded so after this session ends you’ll be able to return and rewatch this webinar about a half an hour after it concludes and you can send in your questions at any time during the webinar using the Q&A panel you have so feel free to do that at any point during the webinar at this one I’d like to introduce our speakers for today Jim roofs publisher of the digital banking report and co publisher of the financial brand and Steven Luang director of product marketing here at Kuni Inc Jim Burris is an internationally recognized financial industry strategist co publisher of the financial brand and the owner and publisher of the digital banking report Bruce advises on innovation portfolio growth customer experience marketing strategies channel ships payments and digital transformation within the financial services industry as director of product marketing at Coney even long is focused on delivering exceptional mobile experiences for customers Steve is a technology veteran with experience in brand management product marketing strategy and marketing operations this helped various leadership roles focused on mobile applications information management endpoint backup file sync and share and server hardware solutions and with that paul hand it over to Tim to kick things off thanks a lot glad to be here today is uh it’s a fun situation to be able to share some of the insights that we collected over the last couple months around the 2016 top retail banking transfer predictions the report itself is has been compiled with the help of close to a hundred global financial services leaders including bankers credit union executives in see analyst advisors authors and tech leaders from Asia Australia Africa North America South America in Europe what’s exciting about this report is not only the largest one we’ve ever done it’s 82 pages with 29 charts but it’s also the most number of people that we’ve ever had our state in our crowd crowd-sourced interview process this is a fifth consecutive year we’ve developed the report and surveying people across the industry about what they thinks could happen the coming year as we look back to 2015 we found that it was highly accurate predicting advancements in digital delivery mobile design use of analytics innovation and customer experience our expert panel was a little bit too optimistic I could say around their projections around mobile payments industry consolidation and contextual engagement however um but I would say they probably hit around a 750 to 850 batting average so you can’t get much better than that hopefully this year will be is as strong as you can see our trends and predictions for this year top 10 were an assortment ranging from the combination of fin Tekken and traditional banking organizations to removing a friction from the customer journey working with data more effectively developing a better delivery strategy again we the pound double down on digital payments and saying that the community expansion which I think maybe they’re a little conservative said you know this would be an expansion but the engine sales can be a conversion to every of every payment type to mobile on the execution on innovation advancing technology storing advanced technologies such as the blockchain and AI and robotics and even authentication the emergency of the emergence of a new pre de banques the Challenger Bank Bri that would include a couple of the states as well so the UK on the needs of nine new talent and responsiveness to regulation regulatory changes um you’ll see on the bottom of each slide there’s a bitly link that is a bitly link for the report itself and it’s currently available for purchase and immediate download um as we move on we the first and and by far the most extensive projection was the platform vacation of banking I really have to give a run Shevlin credit for

the terminology platform location but as you can see what you really was talking about was the combination in the partnership of banks and FinTech firms and that they will partner more than ever in 2016 leveraging the bank’s advantages of scale and stability and Trust experience in navigating regulations and access to significant capital while they don’t we know the FinTech Swede also leveraged their advantages in marketplace so what we’re really looking at is is pretty much taking the benefits of what the FinTech firms have and having banks starts use them as being the way to deliver better services to the consumer if we look at the FinTech strengths for banking weaknesses what the banking industry is looking for is the absence of legacy software in systems and this is probably the biggest challenge in the banking industry today with everything we’re trying to do we’re actually trying to build a digital banking organization in most cases around technology that was established in the 1970s what we really have is a situation where a lot of the larger banks for sure and many of the other ones are being built on technology that was from the 1970s when ATMs were just being introduced and we all know how much has happened since then so the fintechs have a bit of an advantage in that they don’t have this legacy legacy systems and software to work with um they also has a capacity to innovate they have less regulatory pressure there’s certainly a mentality of agility and speed market while certainly the bank industry doesn’t have culture that is suited to rapid change there’s a technology expertise of the FinTech firms and the they’re able to improve crude products think you’re looking at on a clear vision of what we offer and so there’s a great advantage of what the FinTech firms can bring to the bank industry in a partnership situation on the economic concert The Economist Intelligence Unit also found that banking shrinks for what FinTech firms are looking for number one I think the biggest challenges in tech firms have had is scalability they don’t have a very big existing customer base they don’t come with a built in reputation of trust instability they don’t have experience with regulatory requirements so the banks can bring that to the partnership there’s also a full line of banking products and probably what we’re finding more and more is the advantage of deep fun in some pockets in that the banking industry is legacy banks are really able to bring their dollars to the table and say you know we’re going to we’re going to help you make make headway and interest your products I think what we’re going to be looking at if you can envision a a circle with the consumer in the center and then with all the products around the outskirts so mobile wallets retail investments transactions mobile payments savings and to investments and insurance and then the bank will be able to provide the best of breed of what they have and what the FinTech firms offer and what they can do is is they can maintain the customer relationship they can leverage their power of trust with the consumer and and most importantly they can then reduce their own costs because if the partnership is building the right way be is a lending or the positive side what they’ll be able to do is relieve some of the expenses they currently have and have them actually be borne by a much more efficient system and teched-out technology as we move to the second major trend for 2016 I think the second major trend is is removing friction for customer journey um obviously the digital digitalization of the industry and nasty of the consumer is impacting knowledge including banking it’s impacting the way consumers research their choices by their products expand their relationships and determine their loyalty the winners in this battlefield will be those that really simplify the consumers life so what we find is no more adequate to wait into a consumer or member walks into a branch or Desai’s person new product via spark a smartphone instead basic reading really need to engage consumers at every stage of the purchase journey not just because of the immediate opportunities but also the desire to create loyalty and have cross-sell capabilities now I think as we look to this what we have to do is make all this simpler we really make from the moment the consumer walks in the door to the time they they leave us

for whatever reason we make the challenge more and more difficult for them and what we end up doing is even when they try to open account the process is very cumbersome to make that even worse we make them use multiple channels to get there so when we get research such as was done by Bain & Company with regard to digital channels for some branches this was done back in the last part of 2015 we find that this is pretty lightly digital channels delight do brazzers disappoint and it’s more likely for people that are digital based and work and digital channels to be happy with their engagement now there’s a lot of reasons for that and we can talk about card versus horse we can talk about you know the challenges involved and the ability that we still need to be able to provide this on every every level but it’s Brian sola said on the previous slide what we need to do is is it’s now incumbent upon the banking industry to create a male mobile first experience one where we design the entire and entirety of new set of products that will lead to new types of relationships it actually is going to be his like banking industry is best actually partnering with design firms what we need is we and a lot of people criticize my use of this but it’s being overused is the uber of banking let’s make it simple let’s look at the platform such as square cash or takes two clicks to make the relationship with the consumer let’s look at some of these easy transactions that when we came in easier um Steve I know that company’s really big into the whole simplification of the the customer journey did you want to add anything here yeah Jim I mean I think that this is a really key prediction and as you quoted a brian earlier he talked about how user experiences come at the center of a lot of it and we hear that every day from our prospects and our customers and continuing to change the expectations that they have they’re experiencing simplicity and other areas and through other apps that they’re using and so they have the same expectations if not more for banking and whatever we can do to minimize processes that might you know require in person in the branch or 30 minutes of paperwork reduced to minutes and seconds by taking advantage of like the camera on the phone and things like that those are all things that really delight the customers kind of like you said so I think it’s really a key prediction yeah I think what’s itching to is when we break apart this prediction on what became very clear is I would say that over half the crowd source panel that gave you input on this prediction said that the major flaw that we have in the banking industry right now is that the new account opening process is so cumbersome on the mobile device there’s a number of firms on research on this beyond ourselves and it’ll account opening process it’s going to be where we’re going to see a big change because we’re really making it so difficult to have a consumer open an account with a mobile device and we’re making it so there’s so many steps they sometimes have to come in to brands to fund the account they’re just a lot of that that happened I think a lot of the panel thought that this is what we’re going to see a very change next year we’re going to see the ability for four more more banks to have a very integrated simplistic process I think you know as we mentioned the expectations being sent by industries outside the bank it would be a set by the Amazon the ubers the Airbnb s they’re being set by the googles and the firms that are really making it so you can have a OneTouch solution I think when you look at the FinTech firms the major advantage that most thin tech solutions have is simplicity I think that’s really what we have to look at as a bank and making industry when we look at the third projection we look at making big data actionable as consumers demand more and more other user experiences across industries banks or credit unions need to develop strategies that will use the data to better understand and service consumers at all stages of their life cycle in all channels the result will be lower cost to serve increase sales at a greater level of loyalty I think what we have to look at is realizing that when when we’re talking about making data actionable it’s not just developing reports in the hindsight of talking about what we’ve achieved it’s really using that as a pre predetermined where the consumers going to be going next so when we make data actionable to the transaction down we’re looking at behavioral data we’re looking at where they are even and maybe locational data to say you know how can we serve them better how do we understand the needs of

the consumer unfortunately the consumers confidence in the banking industry is really low only 20% of consumers have a belief that the bank and understand the bank industry understands their needs and when we’re looking at what what the banking is or what the consumer is looking for what they’re looking for is they’re looking for an institution to know them understand them and to reward them and that’s not rewards as intangible rewards I think what it really is is it’s looking at the fact that if you know your consumer really well and you understand their needs then you could give them a prediction as to what they need to do to be more financially secure our friend says Slynt provide a really good chart of um the business drivers of predictive analytics I mean you know this is actually a couple years old but we found it to be very important because as you’re looking as a banking industry at the key elements of why you need predictive analytics and again big bank small bank credit union whatever industry you’re in or whatever size organization you are you need predictive analytics to get better customer insights to give a better customer experience to do much better channel execution and a business strategy to manage risks better and certainly for marketing Jon Watts from Casaus mentioned the fact that you know this year in this coming years is going to be a year when when big data and marketing come together for better experiences and when you look at the better experience sometimes let’s remember that as an industry we do a really bad job in the basics I’m a small business owner I’m also consumer banking customer what I go into my bank and if I have a problem in my personal account they don’t have a way of knowing that if I’m not satisfied I can be put in my small business account at risk with that organization the same things true with commercial same things even more true we look at mortgages and credit cards because of all the silos so how do we make it so that the your organization understands your consumer better and give them an idea of what they should do next any report by a gallop last year said that over fifty percent of the consumers say that they have got an offer or product was sent to them that was not at all relevant to what their needs are in many cases we’re offering them the same product they already held or a product that was completely out of the realm of what they need to do so Senia complete credit marketing materials to a person that didn’t own a home so what we really want to do is we have to be looking at not only understanding the consumer from the balanced level the type of things that we want to know but we need to use data help the consumer do better on their own so really what we want to do we have to deepen the engagement of both customers and employees through the use of real-time access to actual intelligent tools so that they’re designed to make the consumers jobs and our employees jobs easier and the key here is not just using data for analytic and post account opening um analysis but really use it to help the consumer the next trend is the introduction of option channel delivery I have a lot of friends who kid me about this because they say no we hardly even understand the on the chat let alone optic Channel or multi sale but it’s really time for financial institutions to respond to the changing behavior of consumers delivering products services and financial education through both physical and digital channels we need to really integrate and optimize channel delivery to bring value to the consumer so what I mean what the the panel also means they’re trying to channel delivery they’re talking about not just making it so you can do the same thing on all channels that’s not optimal what is optimal is to help to consumer find out what channels best for any of their behaviors so what we really are looking for is for instance if I have a challenge with my credit card I just recently as we thought my credit card the last thing I want to do is to type in information in my mobile phone but if I’m on the mover on my vacation as I was last week and this all happened I want to push it click cheese or talk to or connect with in a video way on my cell phone how do we do that and how do

we make it so that some sewer knows the best delivery channel for what they need if the consumer needs their balances why are we making them login to their mobile device with all kinds of passcode why aren’t we recommend easily accessible that’s optimal delivery optic channel delivery so the majority consumer 65% are multi-channel on customers so we need to find ways to address their needs and when we’re looking at opt channel delivery we have to remember we also may be eliminating or or reducing the way we’re delivering services or braking mentions that we are going to start to see the end of traditional bank products in the way we deliver them what we’re going to see is the integration of things such as lending products within your mobile device as to where you are at is for so if you want to push something to retail store we’re going to give them the consumer the ability to just push and say I want this can you fund it we’re already seeing in in Poland and a couple other places the ability to develop 30-second loans personal loans for financing of things we also how can we use wearables or Huck we use other channels to make it easy to save a push to save or how can we get emergency cash at a grocery store without having to open up a reserve line of credit so what we’re looking at here is is again the optimal channel for different things on the challenge here this is again a celeb chart um they’ve done some really good work talking about opting on the channel delivery and what they found was that bankers overall didn’t really understand what they meant by on the channel now they’re pretty sure 63 percent thought that um they are on the channels about insuring customers have a consistent experience of the chat on the channel they use but it really supposed to be consistent or better than other channels in addition ensuring channel integration is seamless transition between channels this is a big problem in the industry for instance if I go into most funniest institutions today and I’ve started my account opening process on my my desktop computer and I’ve decided saves you know what I don’t want to hear I gotta get going I gotta do something let me see if I can I can continue it on my mobile phone number one most institutions are going to give you that capability what’s even worse as I get into the branch and in 95 to 100 percent of the instances if I’ve started it on the computer the branch is going to give me a reason why is better to start over now they’ll do it in such a way the consumer feels are getting better service but the reality is in most cases it’s being done because the branch is rewarded for closing new deals in the branch they’re not rewarded if they open an account digitally or the consumer opens an account digital so what they’re doing is they’re actually making it so that the records will show that the account was initiated and opened in the branch because that’s our incentive program so we actually have systems in place that make it hard for the to simmer to get the best on the channel delivery hey Janice yes yeah I think that when I think about what you talked about it about optic channel delivery – I love how it ties together some of the other predictions like when you talked about making big data actionable or things like that where that’s how you’re going to enable or that’s how banks can enable finding the optimal Channel at any given time for the consumer and that then plays into the customer experience that they have and so I think it all ties together really well yeah I I agree you know I think what we really have to do is say you know how do we make us again is simplicity it’s using data and it’s really looking at you know how we make the entire journey of the consumer easier um expansive digital payments as I said 2015 did not exactly come out the way most people said you wouldn’t know that if you’re a banker that reads all the these object is we’re always talking about mobile about mobile delivery and how even were going to be having mobile payments all over the place but in reality mobile payment usage can choose to remain lackluster not sure if it’s newly announced partnerships and in enhancements will drive increased usage or the acceptable guessing is a major event such as a data breach to move the needle in digital payments um you know I

I don’t know what what the situation is with people in the audience today but I know in my situation even EMV is not being implemented very well I’ve seen the machines out there but I went to three places yesterday and two of the machines they said well I don’t get your card in there because it doesn’t work well you know if it doesn’t work when you’re sliding the card in I think we have to remember it’s certainly not going to work if you’re trying to do mobile payments I think the Samsung pay is an interesting bridge where are you really doing more of a card payment but with a mobile device I think that we may see some growth from that area because it really is a it’s a really short learning curve for the consumer but things like Apple Pam I’m tired looking to figure out where I can use it I know I can use a Panera I can milk I know it’s use at Walgreens which is by far one of the best experiences that always because everything they do is digital but I can’t do it CVS or other places so are certainly an added gas stations um you know Chris Skinner from the financial services probably the UK said you know for the past few years a number of technologies have been rising into a into a perfect storm cloud big data mobile apps and more in 2016 the i/o storm will hit as we see a massive focus upon mobile wallet development to increase usage from chase Samsung Apple and Google wallets and even today we saw a nation Pacific bank say that they’re actually going to develop a platform that is going to do more than what currently is able to be done with Apple pay and they’re going to compete with Apple pay so I think we have to look at that and say you know how do we move people to the next level but until we have a value proposition until we make it easier for the consumer again on they’re not going to change they’re certainly not going to change their way of doing this is so as we look at this we see that over time Jesus shows that payment preferences and not change very much from 13 to 15 and you know we’ve seen the debit card go down a little bit you seen credit card go up a little bit we we’ve seen catch of all things actually go up so we and and oh by the way the little sliver for mobile payments is extraordinarily small we’re seeing it is between 6 and 11 percent of payments so I think overall we need to be cognizant the fact that we need to do some of the consumer education we do see a use of mobile different for different purposes and but where we’re going to need to explain to consumers the benefits certainly from a security standpoint of using mobile payments so we get into the next major trend is executing on innovation the key word here is it executing um with the perceived threat of disruption in retail banking growing through the influx of new FinTech firms the banking mystery is is really actually doing a very good job and aggressively responding to distress by increasing the investment in innovation and I think what we’ve seen is that more more banks have an innovation strategy more more banks have a better understanding of how they want to improve their innovation strategies overall the change in investment innovation investment by area the bank what we’re seeing is that channels eighty four percent of the banks research from Ethne emphasis and physical found that a four percent of the banks are increasing innovation investment for channels eighty two percent for customer service and experience and 67 percent for products so there is an increase in investment the challenge here is how do you execute against that so what we really want to do is there’s no hype around innovation and banks are everly are investing heavily but as soon as get to see much of the benefit of this the struggle is to access consumer data through the bank’s legacy systems and be able to use these in such a way that it makes it easier for the consumer to do banking so again it’s it’s all about simplicity but I think what we have to do is say you know a lot of banks are creating innovation incubators and all kinds of ways of improving their innovation strategies but we’re still an industry that fears failure and doesn’t want to risk very much so we have to balance those things but if we don’t we’re to have to certainly get partners at will the next major trend is exploring advanced technologies this is our crowdsource panel it key you know overall or a group of people as I said from across the globe a lot of really good and good visionaries and I think with the digital connectivity of everyone to everything anywhere and at any time in the ability to analyze and

use data in all aspects of daily life this provides both opportunities and challenges how we respond to these changes well has to determine the success of both institutions as well as the industry a whole I think when we look at different types of advanced technologies and we’re really talking in some cases many years in the future in some cases fears of the future I think what we’ll see is when we start looking at digital transactions making it so that there’s digital storage of everything and then there’s also the ability to make sure that all documentation digitized we’re going to see this in the shorter term we’re starting students more than banking history because it’s not only better it’s cheaper and it’s safer when we start looking at robotics and services that are are more using artificial intelligence things of this nature work or in order further out as far as the tipping points which means the ability to say it was really it’s really taken hold in it and it’s moving quickly when we look at the Internet of Things the the people that were researched by the World Economic Forum thought that the Internet of Things is something that hits a tipping point of 2022 well this actually came out before the consumer electronics shipment but if you read about it in the papers that Samsung and some other companies are developing refrigerators that can do banking for you can do purchases for you we’re already seeing Amazon make it where there’s digital technologies where you you push a button on your let’s say your washer/dryer and get new supplies delivered to you automatically we’re finding different ways to do this to the banking world is going to be the center of this because it’s payments and this integration so when we look at this we looked at in our guide the different types of advanced technologies and what banks can be exploring I think we’re we were looking at a lot of different things and so we’re looking at things like the blockchain um something that is still missing too many it’s interesting that in 2014 our panel talked about Bitcoin last year Bitcoin and blockchain we’re not mentioned on then by changes again become a very hot topic with a lot of the bigger banks doing more and more with the blockchain and trying to see how it can be used but I think we’re also looking at things like robots and robots and artificial intelligence we’re looking at internet of things that we talked about in the report we also talked about on the report about um excuse me Digital authentication this is going to be a short term or in the near future scenario because we’re seeing more and more security risks out there and so what we need to have is the ability to do digital authentication and so you really want to find a way to take some of these technologies and I always use the analogy of the technology game of roulette where you know that if a casino if you’ve been a casino then you always hear the cheers in the yelling at the roulette table so if you’re staying way far away from it you’re not going to know what’s winning and losing the key is to go over to the table see how the table flows put small bets down into advanced technologies those have to be a big bet but put a small bit down to get an idea of who are the winners who are the losers what’s the way it’s going to flow because when these different technologies take hold and this is brought up in our report when the technologies take hold you don’t want to be in the backside looking in and you want to be able to really understand what what the winners and losers found out along the way when we look at the next trend timeline emergence of a new breed of banks now this is something that started in the States a number of years ago with woven simple and go bank and that was really becoming a very hot item globally on the UK’s regulatory board is has changed a lot of the regulations and made it so that um new challenger banks such as Adam and Starling have been able make headway and are starting to introduce new ways of doing banking the key here is as we talk about the very beginning is what kind of scale to these organizations get how can these organization we make an impact and they may take other organization to get them there I know movements got a lot of charm partnerships and ability and globally to take their platform and showing other banks how to use their platform internally and so we look at two of our our friends both David Brier and available Lindstrom and Joanna for instance said that 2016 could be the year that one of the big tech giants show their hand in financial services could be Apple Google it could be something like this and if it occurs it could be a major change that will make legacy firms really get to have to dig down into the new data and relationship

driven business models so again going back to the the analytics and be able to say no how can we use these technologies and so it could be a big technology firm or David bear said it could be a smaller firm a challenge made while still in their infancy our sign up with the consumer the heart and Technology in the brains they have no legacy no wrongs to right deeply no customers yet they are not to be underestimated but 2016 will determine how much this says they are I think what you know many of our panel believed was that challenger banks would be a major item to watch by legacy organizations and see if we want to partner and we’ve already seen BBVA partner with one of the challenging banks of the UK to build a better model for lending a better lending platform and to explain expand their market share in to expand to a warble a global organization in the UK where they really don’t have much of a presence so race is all going to take still takes some new thinking some new human resources the challenge we have right now is that a lot of the things that we need to do in the quest to modernize our technology is that there’s a need to hire the right talent and this banking industry and the banking organizations compete with other industries for the same type of people I’d answer to get the banking probably as not viewed as a most exciting career opportunities especially for Millennials so when we go against some headwinds the attraction and retaining top digital talent that can support both the internal culture of innovation as well as aza technology changes this can become a priority in 2016 as you can see on this slide if you look at the attracting new talent went up one spot from number five to number four this year and the research that was done with tomatoes I think what’s interesting is if you look at one two and three IT modernization innovation and channels I think you very easily argue the fact that every one of those are going to need the number four spot to help out they’re going to need the new talent finally the tenth trend and was probably the lowest talked about but I think it’s probably because it’s it’s is one that’s the most common ongoing every year is that basically the overarching priorities PwC found that from CEOs the overarching banking priorities for the three successor are finding finding growth of the challenging environment delivering productivity continue in the head of the risk and regulatory management functions so what we really need to do we have to be aware that it costs a lot of money we’ve got to find a way to work within the regulatory constraints to say you know how can we be more innovative how can we make these into opportunity rather than challenges I think it’s important in the UK they’ve had some opening of doors that allow that the FinTech firms to to actually make some headway and become these new challenger banks but in the United States oh man to do this is in many cases students or constrictive regulations and so what we have to worry about this over-regulation we had to find out you know also good to find out how do we respond to a raising arising rate in market now yeah it was what we thought two weeks ago it may come back down again with everything that’s going on in the marketplace but I think it’s important to know that um we’re still gonna have to do these basics and we have to debate in a way that it’s not just answering the call but going beyond the call as I said these report you say is a very big report it has over 20 contributing consulting firms that helped us with some of the research we have a hundred in studies for more than 90 industry leaders that are global in nature a lot of names you recognize it’s 82 pages with 29 charts we are offering $100 off on the the report right now and again we really be remiss if I didn’t thank Kony for all the support they’ve given in the collection and compliation of the data and also the ability to distribute this at a lower cost that wouldn’t be possible otherwise so again there’s a bitly for the banking credit report and I’m announcing him over to Steve thanks James I’m really excited to see how this year’s predictions turn out and I did have a chance to read the whole report and there’s some really great insights and one of the big things like you called out is that it’s it’s not just from one person but it’s there’s a whole panel of crowd source information and just a lot of good points of view from a lot of folks out there so I wanted for those of you who may not be as familiar with Kony I

wanted to take a few minutes to talk share a little bit about who we are briefly touch on a few of the trends and predictions that stuck out to me and talk about what Kony’s approaches for the retail banking space so as you can see our mission is to rapidly and continuously deliver exceptional mobile experiences with exponential outcomes for our clients and not just our clients but also their customers we were founded in 2007 have over 300 enterprise customers and published over a thousand enterprise apps and so we’re the largest peer play enterprise mobility player in the market and we’re a recognized leader in enterprise mobility solutions by folks like Forrester we’re in the wave there Gartner Magic Quadrant ovum and others and we’ve got experience across a lot of different industries including healthcare retail human resources and others but one really key area of proven success is with financial institutions and that’s why we’re here talking to different banks and sharing about what’s going on in the industry and we serve over 30 million mobile banking users across 38 countries in we’re continuing to grow very rapidly and we don’t have time to talk about all 82 pages of the trends and predictions report but there’s a few quotes that really stood out to me and so the first one when you’re talking about the platform a’f ocation of banking in considering the implications of it I like what you wrote here Jim by offering these new and existing services under one roof or as part of one app banking organizations can retain customer loyalty through lower costs and a wider selection and when I think about that with banks becoming the hub of distribution for a broader range of solutions I think the mobile app is really going to be a place where a lot of solutions are going to converge for delivery and we’re already seeing some of it one example recent example from a customer of ours was that enabling things like personal financial management tools like pfm within the mobile app allows for a single place for consumers to manage all of their finances and mobile payments digital payments as you discussed earlier is another example of that and another point that you made that really rang true to me was when you said when you said this about removing fiction from the customer journey that for the average bank the most critical first step is to focus on on on improving the mobile experience and having a mobile first strategy is is I think really key for delighting customers and you showed some research on that already but the report itself also noted that the research found some consumers that are using mobile apps are using mobile apps twice as often as a nova web browsing for routine interactions and apps were consistently more likely to delight and so Mobile’s the way more and more consumers want to engage and we’re hearing that every day and that companies that can turn traditionally long processes into just minutes or seconds and that are focused on the customer experience at every touch point along the the journey are going to win and so mobile has some inherent advantages because of the native capabilities I think about things like using the camera on the devices for taking pictures of information and pre-populating fields so that we don’t have to clumsily try to use my thumb’s to type everything every time and using location services to provide contextual experience and so all of these kinds of things are things that remove friction for customers regarding the prediction about opti channel delivery I mean it resonated a lot the quote about beyond multi-channel which was you know there’s different definitions that people have but delivery on multiple platforms or omni-channel delivery through all channels similarly you know there’s optic channel experience deliver solutions using the best or optimum channel based on the customers need and preferred channel and so I think Kony certainly is delivered multi-channel and omni-channel solutions to our customers and we even have an SLA on when our mobile app development platform is going to support like new operating systems that they come out or devices such as wearables as as people like Apple and Samsung add those but helping our customers optimize the cross channels based on their needs and preferences is something we really look forward to working closely with banks and on in the coming year so I think that that one’s the one that we think is going to play out and so I want to spend a couple minutes I think Cody’s approach to our retail banking solution position positions as well for taking advantage of some of the predictions in the latest report and there’s a lot of companies who offer mobile banking solutions so traditionally a lot of apps are built taking the systems of record

approach meaning they’re built with the back end in mind first so looking at what data is available in the system of record and then making an app or front-end interface to get to that data so Kony takes a very different approach and we use the systems of engagement approach meaning that we start like the starting point is consumer first and so we create a unified user experience that seamlessly integrates siloed back-end systems and by keeping our focus on the exceptional user experience first our customers are free to innovate and aren’t really limited by those who maybe take a back-end first approach and I think that that’s changing across the industry and people are recognizing that you know trying to start with the customer first approach but it’s going to take some time for people to adapt and so if I look at how that’s enabled the coning mobility platform is really at the heart of delivering on on this approach and our mobile middleware services integrate with various systems of record and it’s an open platform so clients can use whatever third-party tools or native SDKs they want to develop the front-end but if they if they don’t want to do development in themselves like we’re here we hear from a lot of mid-sized or smaller banks or credit unions or banking associations that that don’t want to do the development you know or want simplified tools we also offer front-end tools that make it easy to design and build great user interfaces and so there’s a lot of choices depending on what the bank’s unique needs are and tell banking we also provide an app accelerator that can speed implementation time and gives like basic core functionality and the finished app can easily be deployed across various devices phones tablets desktop web wearables and so we cover all of those types of channels as well and we’ve taken a look at a customer first approach and briefly at the cony mobility platform and i also wanted to share just a little bit about our solution for retail banking and so one of the most frequent challenges that we hear about from bank prospects is that their current mobile banking app isn’t flexible enough or they’re not able to innovate quickly and that puts them in a situation where they feel like they’re just having a me-too app that doesn’t allow them to differentiate from the competition and so Kony’s solution provides our clients with the latest functionality around account and user management p2p mobile deposit and you can take a look at the different areas that we cover but the key is that it’s built on the cony platform and so not not only can you get the base functionality but you’re able to adapt quickly and a lot of folks have roadmaps that may be you know 12 months before they get things like touch ID and in other aspects but with the platform you’re able to add functionality quickly and so our front-end tools also allow customization of the user experience and the interface so that the app is differentiated and you can you can cater it to your own brand and processes of your own bank and so there’s a lot in it definitely we can share more detail if you guys are interested reach out to us and here’s here’s a few ways to stay in touch so you can find some information online and definitely you know through the other places as well so why don’t we go ahead and move on to Q&A I know that we’ve just got a few minutes left so want to take some questions all right great thank you both for your great presentations there we’ll kick off with Q&A session now if you haven’t already you can submit your questions through the Q&A panel that you have available to you so please feel free to submit your questions there for our speakers we’ll start off here with the first one that we have but I think this for both of you do you see small banks and credit unions partnering with FinTech startups or only the big guys do you know together yeah sure I think that it definitely is beyond just the big guys now I think that a lot of the FinTech folks are going to partner with the mid side banks the functionality that the consumers are are asking for and really want and that the FinTech folks enable is similar in a lot of times and I think you know converging some of that through the mobile app you know things like new account open or you know location-based services and you know anything from that realm are all things that that can happen for mid-sized banks too and I think that adds a lot of value Jim do

you want to add anything on it yeah yeah I think we’ve seen some of the small banks already partner with index around crowd for crowdsource lending and investments and I think we’re going to see more that also I think we may see some of the smaller organizations or some of the bigger provide suppliers the solution providers that are industry-wide making some of the partnerships available to smaller banks as part of their services so it may go through another partner but I think you’re going to be at absolutely access to some of the things as well great all right we have our next question here and this one’s towards Jim in many cases the legacy banks feel the thin text slash challengers have an unfair advantage and they aren’t held to the same roulette raggy relations don’t they have to follow the same rules it’s a good question um your boy depends on the product and what the solution is I think what’s interesting is most many of the fintax are what I will call screwing the rules because we’re not providing a full set of services so when you when you look at a movement or a simple they’re built on a prepaid debit card platform so there’s a lot more flexibility with that they also have brand-new technology I think when we look at overall the the ability to answer the digital banking call the the need to address the needs of a general consumer the biggest challenge is not regulation so biggest challenges are our legacy systems it’s a system that were built and they’re now being put together with the chicken wire and duct tape just to serve the digital needs and I get more concerned about that but I think you know when you’re talking about some of these technologies relook at some of the things are being done in the payments world to simplify the consumers ability to make payments those things can be done by virtually any bank we just have to find a way to do it with our current technology base and so I’m moving around the question a little bit but I think yes they aren’t held to the exact same standards are not offering the full line of services and that’s a challenge now on the other hand they also don’t have scale you know the consumer base you know the the data knowledge and the insight that we do in our consumer so while they may seem to have an advantage from the perspective of not having the same regulatory robust regulatory standard that we’d they have to live to they don’t have a consumer base either they know the product line and that’s why I’m believing as we took a like a wheel and you put the banks in the center I think what we’ll see is the small FinTech solutions being offered through traditional banks to their customer base is a better way to implement different services this will not only lower cost but will make us so that your innovation track gets greater and greater is to not let this all get out of hand because what will happen is these some of these in tech firms are doing their jobs very well so that’s in the lending side if we don’t answer the call and build solutions that are comparable eventually they will get scale and they will have customer knowledge and we’ll lose the one major advantage the legacy manager has which is the insight into our customer base great next question here is what do you think or how do you think security things will be improved such as fingerprints on your phone like if I can start on that one in long Jim you can add maybe think that there’s a lot of improvements in security that they need to happen some things a lot of implementations of like fingerprint and touch ID that we’ve seen so far utilize the devices ID so if your fingerprint is captured on on your phone’s memory for other things that’s what we’re using to access the financial institutions app and I think that some folks think that that’s not secure enough and so they’re looking at other ways to isolate it just to the app I also think that multi more multi-factor authentication methods are being implemented so not just fingerprint but for select things like large transactions like large dollar value transactions that you also enter a mobile PIN and so I think there’s a lot of different security things that folks are looking at and even down to the transaction type level and isolating it that way yeah I think we’re going to see a lot of different ways with authentication and

this is a big deal but it also see the door opener to overall digital payments where when there’s a major breach and when the consumer starts to realize that the phone in some of the technology that they carry around with them can’t have much better security it’s said it’s another step it’s really a balancing act between simplicity and security and I think you know as steam as the touch ID the biometrics they’re you know in China they’re doing scanning the faces um there’s a lot of different answers to this I think what’s key is that we we have to keep it simple I think this would be a major area of adjustment this year and I know a lot of matrix are testing Eliza for things but I think we need to make the security happen not only on this vice level but also in the account level without making the process more difficult yeah it’s one of those those give and takes I mean we get rid of media our passwords on certain things we like like balances but we we should keep even more security when it comes to payments great I have another question here I think this one could be towards both of you could you comment on what are good examples of mobile banks challenging the status quo um I think you know overall you’re you’re looking at the movements you’re looking to the simples um you’re looking at Bank mobile which is actually build out a traditional bank platform but a brand-new one um and then you you want to go overseas and I think I think you want to look at organizations like M Bank and we can talk about how these things have different advantages of Poland the regulatory the regulations our district and also most banks have much newer banking systems because the formalization their banking industry didn’t happen until the 1980s and 90s so compare Lee speaking they have a much better technology platform but I think you look at the organizational I can make you look at the Challenger banks you look at Commercial Bank of Australia I’m sorry Commonwealth Bank of Australia these are our companies out there as far as an innovation firm you want to look at these organisations that are taking traditional platforms and really doing an amazing job digitizing so it’s really shopping around whoever asked that question if they want to reach out to me I’ll give them location cuz I almost lost their name location is a great example of a traditional bank tests just to an amazing implement from a innovation from a digital perspective awesome and we’ll squeeze in one last question before we hit the top of the hour and this one is towards you Steve which one of the trends and predictions lines most with County strengths yeah I think a lot of them align Taccone strengths if I had to pick one I think it’s removing friction from the customer journey and I think that that’s something that I feel like the folks at Kony from development all the way through marketing have a real emphasis and focused on everyday and we’re looking for new ways all the time whether it’s partnering through some other fintechs to enable some technologies or building in-house but just looking at what we can do to make things more simple as Jim kind of called out earlier simplifying the experience for the consumers great alright thank you Jim and Steve for your insightful presentations today we very much appreciate it if you’re interested in finding out more about this feel free to contact Tony you can email us up at info at coney calm you can go on our website at www.clemson.edu/peach

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