Building the future of mobile banking - Part II

Study

September 2017

Financial services institutions are still dealing with the after-effects of the financial crisis. Recently, they have been making considerable effort to comply with new regulations, stabilise their finances and, ultimately, regain customer trust.

In the meantime, society has evolved, impacting consumers’ banking habits. Banks are fully aware of these changes and know that they have to adapt their offering and organisational structure to keep up with digital trends and new expectations. Nevertheless, most banks are finding it difficult to tackle all of these challenges at the same time.

While the pace of digital transformation is rapidly gathering speed, banks must reinvent themselves to get one step ahead of the trends already being set by online banks.

We believe that the mobile banking model, through its implied simplicity, transparency, immediacy and ability to deliver personalised experiences, will be the key driver underpinning this transformation and disrupting the retail banking industry more than any other trigger has before.

As such, the aim of Wavestone, in collaboration with Efma, is to give some insights into the future of mobile banking by looking at the 3 pillars that address the bank’s key areas of operation:
• Part I: Customer targets, acquisition strategy and customer experience
• Part II: Organisation and processes
• Part III: Security and regulatory issues.

Our report, which covers the individual and professional markets worldwide, is based on our online banking services benchmark, our digital banks and Fintech observatory, our benchmark of process performance within the retail banking industry, banking case studies and a selection of interviews. These resources are shared throughout the report, alongside analysis of more than 30 digital banks, including new challenger banks, digital banks, traditional banks, and approximately 180 Fintechs.

The second part of the report presents our findings on the organisation and process transformation stakes through three very concrete and structuring processes:
• Customer demand management, indispensable for mobile banks to ensure the satisfaction and loyalty of an ever growing customer base
• Mortgages, that enable mobile banks to compete with traditional players and establish themselves as their clients’ main bank
• Business loans, to expand the bank’s target client base by focusing on segments where there is a demand for mobile banking services and which generate net banking income.

The third part of the report is devoted to security and regulatory issues. This will be followed in due course by a global report that summarises all of our findings.

Keywords : Credit , Customer service , Digital/Mobile channels , Operational excellence/Cost efficiency , Mortgage