The Power of Mobile Banking: How to Profit from the Revolution in Retail Financial Services

GROW WITH THE FREEDOM, EMPOWERMENT, AND OPPORTUNITY OF MOBILE BANKING Mobile is an important platform for commerce, and smart bankers will use this book to ramp up their mobile strategies. Ashok Vaswani, CEO, Retail and Business Banking, Barclays Krishnans book strikes at the juxtaposition of social–mobile and the implications of understanding and shaping customer behaviors. The book is a must–read for managers, not only in financial services, but in any industry where innovation is central to delivering successful commercial outcomes. Shawn Banerji, Managing Director, Russell Reynolds Associates Banks must wake up to the new mobile reality if they want to compete successfully. Mobile offers significantly more agile infrastructures and lower operating costs. Mobility, including geolocalization, opens a whole new spectrum of services that banks could potentially offer to add value to the relationships with their customers. Ignacio Oviedo, Former SVP and CIO, International Banking Division, Banamex A handy and easy–to–read book that makes a good case for why its important for bankers to get their arms around mobile and understand its potential. David Maya, Partner, Oliver Wyman Mobile represents a huge business opportunity for banks. Krishnans book provides an executive–level overview of the challenges and benefits of mobile banking, along with great practical advice. Bring a copy of this book to your next board meeting! Matthew Wilcox, Managing Director, Marketing Strategy and Innovation, Fiserv Mobile is transforming the pace, possibilities, and the way in which services are delivered and accessed. Krishnan offers thought–provoking views from industry leaders, key considerations for strategy, and emerging breakthroughs that compel us to fundamentally rethink the customer experience. It forces us to focus on behavior before technology. A must read for business leaders today. Rich Epstein, Chief Architect, Maersk Line Building on his 25 years of banking experience and his vision of where mobile technology is headed, Krishnan charts a course for retail financial services in the future. In this warning to banks everywhere, Krishnan rightly suggests that retail finance may be the next industry to get turned upside down by the mobile revolution that is sweeping the globe. Patrick Perrella, Director, Graduate Career Services, Mendoza College of Business, University of Notre Dame The pace of innovation in mobile technology is astonishing. This book will help readers make sense of how mobile can be leveraged effectively in retail banking. Frank J. Casale, Founder and CEO, The Outsourcing Institute and Institute for Robotic Process Automation

Foreword xi Preface xv Acknowledgments xix CHAPTER 1 The Power and Potential of Mobile Banking 1 Why I Wrote This Book 1 Think Behavior, Not Technology 3 Why Mobile Banking, and Why Now? 8 Sanity Checks 10 Looking at the Opportunities and Challenges 13 Time to Rock the Boat 16 Focusing on the Customer Experience 19 New Models for Charity 20 Is That a Bank in Your Pocket, or Are You Just Happy to See Me? 23 Evolution or Revolution? 24 Why Innovation Is Foundational 26 Notes 29 CHAPTER 2 How Did We Get Here? 31 A Rich History, with Lots of Luggage 31 Is Mobile Banking a Real Trend? 34 It’s All about Location 34 How Free Is Free? 37 M ]Payments 37 Creating the Future of Mobile Banking 40 Notes 41 CHAPTER 3 Welcome to Generation M 43 “See and Hear” Replacing “Touch and Smell” 43 Taking the Friction Out 46 Mobile Operators and Banking 47 Mobile Banks 49 Artifacts for a New Age of Banking 51 Note 52 CHAPTER 4 Less Cash, More Sales, Fewer Hassles 53 Soon, Everyone Will Accept Credit Cards 53 Following the Path to Acceptance 55 CHAPTER 5 Readiness Steps 59 Making It Real and Taking Your Show on the Road 59 Channel Discipline 62 Treating Different Channels Differently 63 Develop a Customer Strategy 65 Open Up Your App Store 67 Banks Aren’t Your Only Competitors 69 API ]ifying Your Bank 71 Remind Me, Why Are We Doing This? 73 Notes 76 CHAPTER 6 Prepaid Cards 77 A Step in the Right Direction 77 Financial Inclusion 83 The Present and Future of Prepaid 84 Business Takes Prepaid Seriously 86 ATMs and Prepaid Cards 89 Interview with Todd Nuttall 90 Building Trust with Customers 95 Over the Horizon 97 Notes 98 CHAPTER 7 Risks, Problems, and Headaches 99 Know What You’re Getting Into 99 Don’t Restrict Finance to the Desktop 104 Forty Years in the Desert? 106 Mobile Apps Are Not Manufactured 108 Think Globally, Act Locally 110 The Role of the CIO in Mobile Banking 112 Notes 114 CHAPTER 8 Mobile Everything 115 The Doctor Will See You Now … 115 What’s the Business Model? 117 Aligning Technology with Plan Incentives 118 Evolving Interfaces 122 A Practical Framework for Patient Self ]Management 124 Improving Health Care, One Atom at a Time 128 Mobile and Cities of the Future 131 Notes 134 CONCLUSION 137 Mobile Is the New Normal 137 Net Takeaways 138 Recommended Reading 141 About the Author 143 Meet Our Expert Sources 145 Index 167

SANKAR KRISHNAN is Head of Banking Services, Americas at HCL, one of the worlds leading technology and business process optimization firms. He is best known for his work at Citibank, where he served in a variety of executive roles in the Middle East, South Asia, Africa, Europe, and North America. Prior to joining Citibank, he worked at Standard Chartered Bank and Price Waterhouse, now PricewaterhouseCoopers (PwC). He lives in Scarsdale, New York.