www.retailbankerinternational.com issue 767 / November 2019
UPHILL STRUGGLE US CHALLENGERS AND NEOBANKS FACE BATTLE TO WIN RETAIL CUSTOMERS FEATURE INDUSTRY INSIGHT LAUNCH
Scotiabank shores up its There are around 1 billion The UK is packed with defences by offering a users of Tencent’s WeChat. digital banks. Can bunq holistic premium package Banks should take note change the status quo?
RBI November 2019.indd 1 18/11/2019 16:08:27 contents this month
COVER STORY NEWS 05 / EDITOR’S LETTER 10 18 / DIGEST • Emirates NBD launches instant mobile account opening • NatWest offers Apple Pay to business customers • CaixaBank opens ‘all in one’ flagship hub in Barcelona • BofA joins IBM’s public cloud platform • Temenos: Latin American banks drive digital expansion • Tink appoints former Stripe exec as UK and Ireland country manager • Mastercard teams with BMO and Superbia for True Name • Nuxeo: FS workers believe AI can transform industry 19 US CHALLENGERS
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2 | November 2019 | Retail Banker International
RBI November 2019.indd 2 18/11/2019 16:08:30 contents november 2019
FEATURES 08 / SCOTIABANK 16 Scotiabank is shoring up its competitive defences by offering a holistic premium banking package to secure customer loyalty. Robin Arnfield talks to Anya Schnoor, the bank’s executive VP, retail products 10 / US CHALLENGERS Dominance by incumbents, regulatory challenges, a lack of Open Banking, and consumer preference for bricks-and-mortar mean US direct banks face major barriers. Robin Arnfield speaks to key industry figures 16 / BRAND VALUES When it comes to branding, financial institutions have never really topped the list. This year, Interbrand has once again published its top 100 global brands. Evie Rusman speaks to the successful operators
INDUSTRY INSIGHT LAUNCH 06 / BACKBASE 07 / BUNQ Banks’ old mindsets and ways of operating The UK is packed with digital banks hoping may have served them in the past, but to change the status quo. Another has embracing a digital-first culture is vital if landed: bunq. But can the British market they are to be successful organisations of the accommodate all these challengers? Patrick future, writes Backbase CEO Jouk Pleiter Brusnahan speaks to CEO Ali Niknam 08 22 / FINASTRA RESEARCH There are around 1 billion users of Tencent’s 07 WeChat, which gives them access to almost 14 / MCKINSEY countless services, all seamlessly integrated There have been clear signs that banking has onto one platform under one log-in. Banks entered the late phase of the economic cycle. should take note, writes Martin Haering McKinsey’s Global Annual Review 2019 outlines key archetypes to help banks develop 21 late-cycle priorities. Evie Rusman writes 15 / ORACLE Technological advances and progressive regulatory environments are encouraging banks to develop open, collaborative ecosystems. Evie Rusman analyses Oracle’s latest research into this critical area
www.retailbankerinternational.com | 3
RBI November 2019.indd 3 18/11/2019 16:08:35 HEAR • NETWORK • DISCOVER • CELEBRATE Leasing Life Conference & Awards 2019 Barcelona, Spain • 28 November 2019
For its 15th edition, the Leasing Life Conference and Awards 2019 moves to Barcelona, to bring together asset finance professionals and industry disruptors in an active discussion of the key issues facing the leasing industry. This year’s Leasing Life Conference explores how Europe’s leasing industry is responding to the value chain opportunity, the role of technology in this pinnacle transformation, strategy-driven innovation and much more. Thriving in a digital age has never been more important.
Event highlights • Embracing technological transformation: creating digitised business models • From new technologies to corporate cultures: making innovation a reality • The circular economy: driving change at full speed • CEOs panel discussion and Q&A: the future of asset finance – a strategic outlook • Remaining relevant in an increasingly competitive world • Panel discussion: capitalising on data to drive industry-wide innovation
Headline Partner Gold Partner Silver Partners Bronze Partners
Exhibitors Panel Partner Cocktail Partner Table Host Badge and Lanyard Partner
For more details please contact Ray Giddings on [email protected] or call +44 (0)20 3096 2585
RBI November 2019.indd 4 18/11/2019 16:08:36 editor’s letter
HEAR • NETWORK • DISCOVER • CELEBRATE Leasing Life Conference & Awards 2019 Editor’s letter Barcelona, Spain • 28 November 2019 APP victims: an embarrassing
For its 15th edition, the Leasing Life Conference and Awards 2019 moves to Barcelona, to bring failure to reach a consensus together asset finance professionals and industry disruptors in an active discussion of the key issues facing the leasing industry. Douglas Blakey, Editor This year’s Leasing Life Conference explores how Europe’s leasing industry is responding to the o the surprise of few observers, regulator Pay The report was, to be fair, unanimous, and that always value chain opportunity, the role of technology in this pinnacle transformation, strategy-driven UK is rejecting calls by seven banks for a Faster helps with select committee reports. But to take just innovation and much more. Thriving in a digital age has never been more important. TPayments transaction fee to fund reimbursement one eye-catching recommendation, it calls for a 24-hour of authorised push payment (APP) victims. delay on a subset of Faster Payments transactions. This The sector’s failure to agree a consensus following an would, the TSC argues, give consumers the chance to Event highlights industry-wide consultation is, nonetheless, a bit of a PR consider if they are being defrauded. own goal, but perhaps not a great shock. Faster Payments represents a UK finance sector • Embracing technological transformation: For the record, the seven banks were Barclays, HSBC, success story, so it makes little sense to propose creating digitised business models Lloyds Banking Group, Metro Bank, Nationwide, RBS and regulatory changes designed to slow it down – nor Santander – in other words, the incumbent banks. That would such a change find favour with the majority of • From new technologies to corporate is, the established high street players plus the relatively consumers. cultures: making innovation a reality new kid on the block, Metro. All stakeholders seem to agree on the need for Notice the lack of any of the neobanks and digital a solution that will give consumers peace of mind. • The circular economy: driving change at challengers among the seven. The suggestion is that the Moreover, the agreement will need to meet the needs full speed challenger banks have thrown something of a tantrum. of different types of payment provider – incumbents • CEOs panel discussion and Q&A: the future Moreover, it has been suggested that smaller players and digital challengers. The solution will also need to be think they may be unfairly penalised as the bigger sustainable, with bank transfer scams already totalling of asset finance – a strategic outlook lenders may be better at fighting fraud. And so it is a case just over £1m a day and rising. • Remaining relevant in an increasingly of back to the drawing board. There is, however, a window of opportunity for competitive world In the first half of the year, the cost to UK consumers the banking sector to get its posterior in gear before of APP scams was over £200m ($258m) – and remember, Parliament resumes. The TSC will not resume sitting until • Panel discussion: capitalising on data to we are talking here of blameless victims. In May, a the New Year, following the UK general election. drive industry-wide innovation temporary code was agreed by eight banks. They agreed Blameless victims will need to be offered greater to refund victims in no-blame situations where neither protection. Stating the obvious, the new Parliament, the bank nor the customer was at fault. That temporary whichever party wins the election, will expect victims agreement is due to end in January. Time is therefore of to be reimbursed. In 2018, victims received back only the essence, and UK politicians are watching. an average of 20% on £354m stolen in APP scams; that Pay UK sought industry-wide responses on the kind of reimbursement rate is unsustainable. The likely proposal to introduce a Faster Payments levy. It received outcome is that banks will self-fund compensation for 41 replies from a range of different types of payment victims. As a result, they will need to ramp up efforts service provider. The responses are split, with 12 to improve consumer education. It will also represent a respondents in favour, 24 opposed and five stating no renewed opportunity for the more astute and innovative firm view. Quite how five firms could find themselves in security software outfits to plug their wares. the ‘don’t know’ camp is a puzzle, but no matter. Take a bow, TSB Opponents say the proposed rule change may result Lastly, take a bow TSB, which has ploughed a lone furrow in inappropriate cross-subsidies. Moreover, they may among its peers. In April, TSB launched its Fraud Refund Headline Partner Gold Partner Silver Partners Bronze Partners impact on incentives to reduce fraud and cut fraud costs. Guarantee – the first UK lender to refund customers if APP victims: political implications they have been an unwitting victim of any type of fraud. The bank sector’s failure to agree a way forward will TSB is also among the most energetic lenders at have political implications. In particular, the Treasury community level, working with schools, hospitals, care Select Committee will be vocal. Now, the Treasury Select homes and charities as part of a Protect, Prevent, Pursue Committee in the last Parliament did some sterling approach. work. It produced many worthy and carefully considered TSB has gained much positive PR for its strategy, and Exhibitors Panel Partner Cocktail Partner Table Host Badge and reports; however, its report, Economic Crime: Consumer in the process, it has repaired much of the damage to its < Lanyard Partner View, released in early November, is not among them. reputation arising from last year’s IT shambles.
Get in touch with the editor at: [email protected]
For more details please contact www.retailbankerinternational.com | 5 Ray Giddings on [email protected] or call +44 (0)20 3096 2585
RBI November 2019.indd 5 18/11/2019 16:08:37 industry insight | backbase
designers, coders, developers and techies integrated with product and service, business the core building and customer-focused staff. Collaboration software then enables ideas to be refined through many small interactions before they reach formal sign-off. blocks of a new Digital-first businesses also collaborate with external parties. The spread of cloud computing has fostered an API economy, where specialist capabilities are easy and digital culture relatively cheap to access. Taking advantage of these often leads to quicker results than Banks’ old mindsets and ways of operating may have building the equivalent functionality in-house served them in the past, but embracing a digital-first – although this may require the development of new partner management skills. culture is vital if they are to be successful organisations Evolution is another core tenet of a digital of the future, writes Backbase CEO Jouk Pleiter culture. Updates and upgrades are developed quickly, continuously and iteratively, enabling 2018 Boston Consulting Group Regulatory barriers to entry and progressive firms to respond to customers’ changing study of 40 digital transformations oligopolisation of markets have created a expectations and deliver ongoing value. A found those companies that moat around the biggest banks’ businesses. Creating value for customers is paramount focused on culture were five times The ‘endowment effect’, where revenues are for digital-first businesses. To do this, firms more likely to achieve breakthrough mostly generated by products sold in previous study their end-users to discover what they performance than those that did not. years, such as loans and mortgages, has actually want and need. Every employee, no Establishing a truly digital-first culture further limited the perceived need to make matter their job, should hear directly from is, therefore, a priority if institutions are to changes. customers. Employing constant testing with become dynamic digital banks ready for the actual customers and encouraging customer modern banking era. But what does a digital DIGITAL FIRST feedback are key parts of the process. culture look like, and how do you create one? Like it or not, every business is now a Business culture reflects the beliefs, values, The old mindsets and ways of operating tech business, and all employees should be rituals, attitudes, behaviours and structures are ill suited to the digital world. Financial tech people. Part of banks’ culture change that have built up among staff, and which institutions need to adopt the cultural focus therefore must be on helping develop take shape in a set of formal and informal characteristics of dynamic, digital-first employees’ knowledge and understanding rules. Culture can be tricky to define, but it is businesses to remain relevant and profitable. of the digital world – for example, through enshrined as ‘the way things are done’. Digital-first businesses embrace more expert briefings, digital workshops and Traditional banks’ long history, scale and action and less planning, promoting speed hackathons. Monitoring digital developments function in society are mirrored in their and continuous iteration in the drive for at other businesses, even in completely cultures. While each has its own particular results. In successful tech businesses, authority different markets, also offers vital clues to ethos, on the whole they tend to be risk- is delegated and teams have significant how customers and markets are evolving. averse, hierarchical, rigid and slow to change. autonomy. Oversight exists, but constraints Changing engrained bank cultures is Banks’ core business comes down to making and controls are kept to a minimum. not easy. Disruption is uncomfortable and decisions about lending money, which This creates an environment in which will likely breed fear and resistance. But if demands strong risk awareness. The result has entrepreneurial ideas thrive. Small teams free incumbent banks are to instil the digital-first been a focus on control and avoiding failure. of multi-layered decision making also allow culture that will help them survive and thrive, Prioritising risk control and minimising for more agile execution. they must push forward. failure has also produced rigid delegation and Experimentation is encouraged. Fast- Change starts with a clear vision statement reporting structures. Decisions are deferred moving digital markets demand constant that sets out exactly the culture the bank up the management chain, limiting the change, so businesses need to be in a state of wants. Messages have to be stark to overcome ability to innovate and respond to customer permanent beta – experimenting, learning, residual organisational intransigence. Any demands, opportunities or market threats. refining and repeating continuously. And chance of successfully implementing that Banks’ adaptability and the speed with because not all experiments will be successful, vision will then depend on strong leadership. which they can change is further constrained failure is accepted, not punished. Leaders’ behaviour cascades through an by their large, discrete, siloed businesses. With disruption spreading across all parts organisation and its culture, so they must Implementing IT and process changes is of the banking industry, the greater risk walk the walk. Commitment to a digital-first complex and risky. Legacy systems and comes from not changing. culture must be honest and unwavering. workarounds are common, heightening Collaboration is central to digital ways of Culture change is a never-ending project, fears that any transformations could have working, since no one person has the full requiring constant refresh and self-disruption. disastrous knock-on impacts. Incumbents range of expertise needed to solve customer But it is crucial to becoming a truly digital- have little incentive to change in any case. problems. In digital-first cultures, teams have first business. <
6 | November 2019 | Retail Banker International
RBI November 2019.indd 6 18/11/2019 16:08:37 launch | bunq
bunq: the latest digital start-up to target the uk
Britain is certainly packed to the brim with digital banks hoping to change the status quo. Another has landed: bunq. But why now? And can the UK have all these challengers competing against one another? Patrick Brusnahan speaks to CEO Ali Niknam about the challenger’s plans Ali Niknam, bunq
utch neobank bunq has continued outcome came into existence and then I went new guys competing with a new guy. More its expansion and officially home the next day. players out there just makes it better for us.” Dopened in the UK, following “I’m really happy that we have finally been launches in Germany, Austria, Italy, Spain, able to soft launch our product in the UK.” GETTING OUT THERE France, Ireland and Belgium. bunq offers several services to UK MENTALITY In order to make its mark, Niknam believes customers. bunq Premium is a mobile “the experience of bunq is different from experience, with up to 25 fully functional Coming to the UK – in particular London, anything out there”. However, a number of euro bank accounts as well as Maestro and with its status as a financial hub – is a other players are also saying the same thing. Mastercard debit and credit cards. Users traditional move for many a firm; Niknam Niknam wants bunq to do more: he wants choose where their funds are stored and how had other reasons, however. consumers to fall in love with the bank. they are used. He explains: “Frankly, the financial hub “When we launch in a country we do so in In addition, consumers can utilise the part is less relevant for us. What we really two phases,” he states. “Firstly, a soft launch. bunq Travel Card, which calculates the liked about the UK is the mindset of the We get this group of people that are naturally true exchange rate on purchases in foreign British people. You guys are really open to drawn to what bunq stands for. Then we currencies; this results in savings of up to 3% new ideas; you’re more willing to give things a get into close contact with them, because for customers. chance and try them out, to experience them the community we have with bunq is quite Travel Card is also a Mastercard credit card, and then judge, whereas, for instance, the strong, and we really try to understand what and can be used to pay for hotels and rental Dutch people are more conservative.” it is that makes people really fall in love with services with no risk of overdraft. The Travel UK consumers do not need to look hard our apps. Card has no monthly costs and is available for for a digital challenger bank: Monzo, Starling, “After some time has passed and a one-time fee. N26, Revolut, Tandem – the list goes on. adjustments have been made, then we start However, the congested market is not a marketing. But even then, our marketing BANK OF THE FREE deterrent for bunq. budgets have always been smaller, it’s always “The fact that there are so many fintech been more restrictive, because for us, we’d Founded in 2012 by Ali Niknam, its current players in the UK just proves the point that rather let our happy users do the talking. CEO and sole investor, bunq brands itself the British mindset is one that is open to new “If you look at bunq as a whole today, over as the Bank of the Free. Had it been up to experiences,” Niknam assures. “For us, that 50% of our users have come organically Niknam, however, bunq would have landed makes the market even more attractive. through word of mouth, so that just proves on UK shores much sooner. “If you look at the real numbers, today, how much people love to use bunq.” Speaking to RBI, he says: “The UK has 99.9% of customers are still with the In terms of the future, Niknam concludes: always been on our wish list to launch. In incumbents, right? For us, the fact that there “One of the dreams of any entrepreneur is to fact, it would have been the first country we are so many peers – because we do see them launch in the US. We are not doing anything launched in if it hadn’t been for Brexit. as peers, we don’t see them as competition – concrete there yet, but it’s really important “I actually was physically in the UK on the is a good thing.” that we do things right. We still have more night the vote took place; I was preparing the He adds: “In our mindset, the new guys are than enough opportunities here in Europe to launch there. Then, for me, the unexpected competing with the old guys, rather than the make more people fall in love with bunq.” <
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RBI November 2019.indd 7 18/11/2019 16:08:38 feature | scotiabank
scotiabank introduces premium banking package in canada Scotiabank is shoring up its competitive defences against other big Canadian banks and fintechs by offering a holistic premium banking package to secure customer loyalty. Robin Arnfield talks to Anya Schnoor, the bank’s executive VP, retail products
cotiabank has introduced the and the Scotia Momentum Visa Infinite Ultimate Package which, it says, cards; Soffers customers enhanced value • +0.10% ongoing interest rate boost on and rewards by addressing their saving, a Scotiabank Momentum Plus savings spending and investing needs. account; Anya Schnoor took up her current position • Ultimate rates on select Guaranteed with Scotiabank Canada in 2017, having Interest Certificate savings accounts; been its senior VP and head – Caribbean • 10 free equity trades at the Scotia iTrade South and East, international banking. e-brokerage in customers’ first year and “Over the last two years, I’ve been focusing five free equity trades every year after, and on understanding our customers’ changing • A choice of Scene or Scotia Rewards expectations and doing a lot of research in loyalty programmes. Scene points are the market,” says Schnoor. “We asked our redeemable for entertainment rewards customers what they are looking for from such as films or meals, while Scotia their financial institution, and what missing Rewards points are redeemable for travel, Anya Schnoor, Scotiabank gaps they would like any financial service gift cards, electronic devices and so on. provider to meet.” existing customers to make sure we meet Scotiabank identified a need to provide their expectations and give them additional Customers avoid a monthly account fee customers with comprehensive, holistic features and benefits within their banking if they maintain a minimum daily closing solutions to help them meet their financial package.” balance of C$5,000 for the entire month goals. “One of the things that came across in in their Ultimate Package current account. our research is that customers want solutions SWITCHING SERVICE Alternatively, the monthly fee is waived that meet multiple needs,” Schnoor says. if customers hold a combined balance of “They want to be able to use products in the To help new customers move to Scotiabank C$30,000 across their Ultimate Package way they choose, depending on their lifestyle. from other banks, Scotiabank has introduced current account and Momentum Plus Savings So, in our Ultimate Package and in some an account-switching service. Account. For customers unable to qualify for of our other products and packages, we’ve “One of the barriers to switching is the the fee waiver, Scotiabank Ultimate Package created what we think are winning solutions: automated payments in and out of your bank costs C$30.95 a month. the ability to save, spend and invest from one account such as salaries and bill payments,” Scotiabank has also refreshed two other place. This is the reason for the changes we Schnoor explains. “So, following feedback banking packages to offer enhanced benefits made in the last few months to our accounts.” from customers, we’ve made it simple to to customers. The Scotia One account is As an example, Schnoor cites Scotiabank’s transfer accounts to Scotiabank.” now the Preferred Package, while the Basic decision to waive foreign exchange The Scotiabank Ultimate Package’s features Banking Plan has become the Basic Plus Bank transaction fees on its Scotiabank Gold include: Account. Preferred Package customers enjoy American Express credit card and its • Unlimited debit transactions and Interac a first-year annual fee waiver of up to C$139 Scotiabank Passport Visa Infinite card. e-Transfer P2P transfers; on select Scotiabank credit cards Schnoor says that, like other Canadian • Unlimited global non-Scotiabank ATM banks, Scotiabank looks to attract new withdrawals; ANALYST COMMENT customers, especially immigrants to Canada. • Up to C$139 ($105) annual fee waiver “Providing bank accounts for new Canadians each year on select Scotiabank credit cards, “Scotia is well positioned in the credit card is an area we focus on, and one of our including the Scotiabank Gold American market, with 15% of Canadian cardholders strengths,” she says. “But we also focus on Express, Scotiabank Passport Visa Infinite, carrying one of its cards,” says Mary-Anne
8 | November 2019 | Retail Banker International
RBI November 2019.indd 8 18/11/2019 16:08:39 feature | scotiabank
Huestis, a founding principal at Canadian as they don’t have time to figure out all the their incumbent bank currently gives them,” financial research firm MarketSense. “It’s the things they have to deal with.” he says. only Canadian issuer to offer cards from all Ultimate Banking package customers, In January 2019, the Department of three networks: Visa, Mastercard and Amex.” like other Scotiabank customers, can use Finance launched a public consultation on MarketSense’s Wave XIII CardSense Scotiabank’s mobile app to access their Open Banking. The Minister of Finance also study found that 38% of Canadian credit various accounts, including their iTrade launched an Advisory Committee on Open cardholders report that there is a fee accounts and Scotiabank GICs. Banking to assess the merits of Open Banking associated with their primary card. In May 2019, Scotiabank relaunched its in terms of consumer privacy, security and “Currently, 8% say their card fee is included Canadian mobile banking app. “We’re using financial stability. in a banking package and 4% say their fee is elements of our Canadian mobile platform to In June 2019, the Canadian Senate’s waived for the first year,” says Huestis. “For rebuild some of our mobile platforms in other Commission on Banking, Trade and Scotia’s primary banking clients, the first-year countries where we provide retail banking Commerce published a report recommending [credit card] fee waiver is higher than average services,” says Schnoor. that the government give Canadians the at 11%, so this seems to be a strategy that In June 2019, JD Power ranked Scotiabank means to share their financial data safely and Scotia is building on.” as the number one Canadian bank in overall securely by facilitating open banking. In terms of reasons for credit card banking mobile app satisfaction. In January According to a report published by acquisition, a bank relationship is a strong 2019, Scotiabank was also named the number the Senate Committee, almost 4 million motivator, mentioned by 15% as the most one bank in customer satisfaction in JD Canadians use ‘screen scraping’ financial apps important reason for acquiring a particular Power’s 2019 Canada Retail Banking Advice to access their banking information, which card, Huestis notes. Study. may cause privacy and security issues. It “Scotia’s Ultimate Package is likely to have recommended that the government facilitate strong appeal, especially among those who VERTICAL MARKETS the development of an Open Banking consider the bank as their main FI,” she framework in collaboration with industry continues. “The package looks to draw in Scotiabank has several initiatives to target stakeholders. products which existing customers may not different customer verticals. For example, According to EY’s latest Global Fintech hold there currently, perhaps stock-trading its Scotiabank Women Initiative aims to Adoption Index, Canadian consumer fintech accounts or GICs. empower women-led businesses, while its adoption has risen from 18% in 2017 to “The choice of reward programme is Scotiabank Healthcare+ Physician Banking 50% in 2019. Among the reasons driving interesting, as both Scene Rewards and Scotia Program provides tailored financial solutions consumers to fintech services are better Rewards are strong offers. However, Scene for Canada’s medical practitioners. The rates and fees (identified by 42% of survey caters to consumers focused on lower-value Physician Banking Program was developed in respondents), ease of setting up an account rewards that are achievable quickly, and Scotia Rewards is designed for those with more aspirational reward goals.” Fintechs are no longer seen as disrupters Huestis continues: “Both Scene and Scotia Rewards receive high marks (over 50% top- to the traditional financial services box excellent scores) from their members on the quality of the redemption experience. industry: they’re sophisticated competitors Both programmes also have high proportions who say they are likely to continue collecting program points (over 60% are very likely), collaboration with MD Financial, a company (19%), and more innovative products and signalling high engagement.” bought by Scotiabank in 2018. services (10%), EY stated. In addition, Scotiabank offers a range of “Fintech adoption has evolved significantly COMPETITION personal and business banking solutions in Canada over the past two years, alongside to business owners, including a team of the evolution of customer priorities and Not only does Scotiabank have to contend dedicated advisers, the Select Account for the rise of money transfers and payments,” with the other big five Canadian banks, but it Business and the Scotiabank Passport Visa notes EY Canada fintech leader Ron Stokes. also faces growing competition from fintechs Infinite Business Card. “Fintechs are no longer seen as just disrupters offering a range of payments and wealth to the traditional financial services industry: management services. OPEN BANKING they’re sophisticated competitors, ready to It hopes that, by bundling a range of meet the changing expectations and needs of banking and wealth management services in Although Canada has yet to introduce Open customers.” a single premium account, it can offer time- Banking legislation, there is an inevitability EY found that lack of awareness was the pressed customers greater convenience than about it eventually becoming mandatory, top reason why Canadian consumers opt having to deal with a range of providers. according to Christie Christelis, president at to use an incumbent financial institution “Our Ultimate Package with our Canadian consultancy Technology Strategies (identified by 29% of respondents) rather wealth management products is ideal for International. than a fintech challenger, followed by greater professionals,” says Schnoor. “They want “Open Banking will enable customers to trust in FIs (24%), and not seeing the everything to be easily accessible in one place, go to different providers for each service that advantage of fintech challengers (17%). <
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RBI November 2019.indd 9 18/11/2019 16:08:39 feature | us challengers
challenger banks face an uphill struggle to win retail customers
Market dominance by incumbents, regulatory challenges, a lack of Open Banking, and consumer preference for bricks-and-mortar banking mean US direct banks face major barriers. Robin Arnfield asks industry commentators how big a competitive threat the challengers pose
ecent years have seen the minimum balances, monthly account services, • BankMobile, a subsidiary of Customers emergence of a growing number or foreign transactions. It raised $200m Bank, which partnered with T-Mobile to R of home-grown digital-only banks in March 2019 at a $1.5bn post-funding offer the T-Mobile Money mobile banking and fintechs offering banking, payment valuation. Reportedly, Chime is seeking a new service; and wealth management services in the US. funding round at a valuation north of $5bn. • Citizens Bank’s Citizens Access; Several foreign challengers are also In September 2019, financial management • PurePoint Financial, the digital arm of entering the US, such as Monzo, N26, Fidor, app provider Dave raised $50m from MUFG Union Bank; Israel’s Pepper and Revolut. In June 2019, Norwest Venture partners, valuing the • Goldman Sachs’ Marcus, which has TransferWise launched its borderless bank neobank at $1bn. garnered $35bn in deposits; account and debit card in the US. • Wells Fargo’s Greenhouse; Typically, challengers offer a mobile-first, CATEGORIES • Simple, which was acquired by BBVA in branchless digital-only user experience along 2014, and with personal financial management features The US direct banking market has three • Azlo, BBVA’s new small business bank. to help customers save and manage their types of player: firstly, there are neobanks – money. Their apps offer transparent current fintechs that do not have their own banking Finn, Chase’s digital-only brand, was closed accounts with either low fees or no fees at all, licence and partner with a Durbin-exempt in June 2019 after Chase decided its own- higher-than-average savings rates, and tools chartered bank such as Bancorp that provides brand consumer unit was better equipped to such as expenditure tracking and real-time favourable debit card-issuing economics. meet millennials’ needs. notifications. Secondly, there are challenger banks such “Simple has moved all its accounts to Several challengers have raised large as Ally Financial, which hold a bank licence, BBVA USA,” says Simple spokeswoman amounts of venture capital funding, such as and neobanks, which are in the process of Kayla Golden. “Our core offering includes Varo Money, Chime and Dave. Varo Money, gaining a licence. Varo received preliminary individual and shared accounts, protected which offers bank accounts with no monthly approval in September 2018 from the Office goals accounts which include emergency fees and fee-free overdrafts of up to $50 for of the Comptroller of the Currency (OCC) funds, our Expenses budgeting tool, our eligible customers, raised $100m in a Series C for a national bank charter. Goals savings tool, and Safe-to-Spend, which funding round in July 2019. Thirdly, some incumbent banks have calculates users’ account balances minus Chime claims to have 5 million accounts established standalone direct banking brands. Expenses and Goals, letting them see what is and does not charge any fees for overdrafts, Examples include: actually safe to spend.”
10 | November 2019 | Retail Banker International
RBI November 2019.indd 10 18/11/2019 16:08:42 feature | us challengers
BRICKS AND MORTAR DIGITAL-ONLY NEOBANKS/CHALLENGER BANKS OPERATING IN THE US Challenger bank Home geography Notes GlobalData’s 2018 Retail Banking Insight Survey found that 69% of US millennials Leading the way in number of accounts and deposit Ally Financial US market share prefer physical banks. According to Cornerstone Advisors, 10 Chime US years after the launch of neobanks in the US, BankMobile US A brand of Customers Bank only 3% of millennials have their primary Simple US Started in 2009. Acquired by BBVA in 2015 checking account at a digital bank like Simple, GoBank US A brand of Green Dot Bank Chime or Moven. The US consultancy says Greenhouse US A brand of Wells Fargo that this percentage drops to 1.5% of gen X Varo Money US consumers and 0.8% of baby boomers. In total, consumers have opened just 7 Started in 2011. Shifted core strategy to offer white- Moven US labelled mobile banking apps to banks, rather than relying million deposit accounts at digital-only banks, on consumers for profits including accounts that are not primary, Citizens Access US A brand of Citizens Bank Cornerstone Advisors says. Finn US A brand of JPMorgan Chase, closed in June 2019 REGULATORY CHALLENGE Monzo UK Announced US launch in June 2019 N26 Germany Announced US launch in July 2019 US fintechs wanting to enter the banking Revolut UK Plans to launch in the US by the end of 2019 market are hampered by a fragmented and Source: Zafin complex web of federal and state banking agency supervision. speculation that fintechs might be granted and it has a lot of users who love the product, Also, unlike in the UK and Europe, the industrial loan company (ILC) or industrial but consumer banking is not its core product; US banking industry has yet to adopt a policy bank charters, after both Square and fintech commission-free stock-trading is.” of Open Banking, which would facilitate lender Social Finance (SoFi) applied for ILC Kar adds: “Others like Chime and consumer adoption of neobanks. licences. ILCs are US financial institutions Current are focused on checking accounts In 2018, the Office of the Comptroller of the Currency (OCC) launched a “special purpose” fintech national non-depositary banking charter, endorsed by the US Treasury. Most of these companies are targeting As an OCC charter would be national in scope, a fintech with a national bank charter customers who are new to banking. It’s safe could operate across the country without acquiring a separate licence for each state in to say that most are focused on millennials which its customers reside. The charter has been opposed by state banking regulators through the Conference that provide niche financial services such as and debit cards as their core product, and, of State Bank Supervisors and the New lending money, and may be owned by non- as demonstrated by Chime’s new Spot Me York State Department of Financial Services financial institutions. feature, are using that as a wedge to add more (NYDFS), which have filed separate lawsuits Both Square and SoFi withdrew their ILC services like microlending.” claiming the charter exceeds the OCC’s legal licence applications after opposition from Chime says SpotMe is an alternative to authority. The NYDFS claimed in its suit that community banks. American Banker reported bank overdrafts targeted at people who the OCC’s decision to grant fintech charters that Square had reapplied for an ILC licence deposit their paycheque of at least $500 a upsets the balance of the dual banking system in December 2018. month into their Chime account, but live in the US, as it intrudes into the New York paycheque to paycheque. State regulator’s home turf. COMMENTS “After signing up for SpotMe, you can The charter’s drawback for fintechs is keep spending with your debit card even if that it does not allow them to offer demand “There are two different types of neobanks/ your balance goes below $0,” it says. “Your deposit accounts, although it does allow them challenger banks in the US,” says Ian Kar, overdraft limit depends on multiple factors, to originate loans and access the national founder of blogging site Fintech Today. but some users can overdraw their account by payment system directly without having to “Some are rebundling financial services and $100. When you next paycheque arrives, your rely on third-party banks. getting into consumer banking, but it’s not negative balance is repaid, and you don’t pay In October 2019, a US District Court their core product. An example is investment any overdraft fee.” judge ruled that the OCC lacks the site Robinhood’s new cash management Kar notes that both Square and Venmo are authority to grant nationwide bank charters product, which features 2% annual playing in the neobanks’ space. Square Cash to non-banks which were not eligible for percentage yield on checking accounts as well App is a checking account with a debit card, FDIC insurance; however, the OCC said it as debit cards. and Venmo also provides a debit card would appeal the ruling. In 2017, there was “It makes sense for Robinhood to do this, “Most of these companies are targeting
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RBI November 2019.indd 11 18/11/2019 16:08:42 feature | us challengers
customers who are new to banking,” Kar says. “It’s safe to say that most of them are focused on millennials. “Some, like Chime and Current, are focused on under- and unbanked customers. Others, like Point, are focused on Gen Z college students, a generation that has less attachment to big banks and therefore is easier to convince into using neobanks.” Kar continues: “Typically, neobanks that want to become your primary bank shy away from focusing on clients that have accounts with incumbents, as the cost of acquiring those customers is higher. However, some companies, like Robinhood, Betterment and Wealthfront, have been able to capture them by getting them in the door with other products – like commission-free stock-trading and roboadvisors – and have a solid shot at upselling them into other products like cash management accounts.” Kar says it is still too soon to evaluate the threat neobanks pose to the likes of Chase, Wells Fargo and Bank of America. “This yet, so big banks haven’t had the need to “I question why neobanks would want to be remains to be seen, as it’s still early days when devote a lot of resources towards projects like a bank, given the regulatory and compliance you think about how recently these neobanks Chase’s Finn.” issues and costs, and since they can use the got started,” he says. “For example, Chime He adds: “Another reason is that a digital small community banks’ infrastructure. only launched five years ago. banking service would, in theory, cannibalise While the neobanks boast customers and “That being said, you can see business a consumer division that’s extremely lucrative accounts, I don’t think they are taking share model disruption happen in other areas of for most of these banks. The most promising from the major banks – for many people, the financial services like wealth management, digital banking service out there from a big neobanks are just another app that they have where companies such as Charles Schwab bank is Marcus by Goldman Sachs. on their phones. We are starting to see some and TD Ameritrade have moved towards “The product takes advantage of Goldman’s neobanks get into lending and some trying to become a marketplace for financial services.” In the longer term, the neobanks need to provide real tangible value, a truly neobanks that want to become your differentiated value proposition and a profitable business model, Raza says. primary bank shy away from focusing on “Digital-only banks arguably have a cost advantage, but they need sustainable revenue,” clients that have accounts with incumbents he explains. “If the venture capital funding dries up, that would sound the death knell for the neobanks.” commission-free trading models, largely cheap cost of capital and, down the line, it in part due to the success and growth of makes sense for Goldman to get more into INCUMBENT COMPLACENCY Robinhood. I suspect that similar trends will consumer banking, since it doesn’t have a happen in retail banking over the next few bricks-and-mortar division.” “So far, despite the fanfare, neobanks haven’t years, as these start-ups continue to grow been overly successful in penetrating the and find new, cheap ways to acquire young REVENUE MODEL highly competitive US market,” says Meenaz customers.” Sunderji, EVP, partner growth and sales at Kar is critical of efforts by big banks to “Neobanks’ revenue model is debit card Zafin. “But that doesn’t mean incumbent provide their own standalone digital banking interchange-based, which isn’t sustainable,” banks can rest on their laurels, as their head services. “They’ve largely been a disaster, but says Ali Raza, SVP, US region at FSS start may be short-lived. it’s admirable and noteworthy that big banks Technologies. “By delivering more effective value have devoted any resources at all towards He adds: “Outside the US, regulators have propositions that resonate with and motivate digital banking services,” he says. provided banking licences to neobanks, but I specific segments – defined by demographic, “I think it speaks to the potential threat that don’t see that happening anytime soon in the behavioural, geographic and other identifiable these neobanks can pose to these big banks – US, although a couple of neobanks are trying variables – incumbent banks can create they’re not a big concern to the incumbents to get licences. more relevant, personalised and holistic
12 | November 2019 | Retail Banker International
RBI November 2019.indd 12 18/11/2019 16:08:44 feature | us challengers
INCUMBENT STRATEGIES Incumbent banks have four options in a digital world
Option 1: Do nothing From a legacy systems and servicing cost perspective, the status quo will be very costly and risky in the long term.
Option 2: ‘Rip and replace’ legacy core banking The cost is high (hundreds of millions of dollars), the timeframe is long (as much as five years), the execution risk is high, and systems with a more the ROI is unclear. modern system
Option 3: Spin off a Building a new bank on new technology tends to focus on a particular segment of customers; the legacy operating digital-only bank risk still remains.
For many incumbent banks, their core banking systems, the heart of the bank, are decades old. Over the years, the lack of flexibility in those systems has forced them to build up a considerable amount of “cholesterol” in terms Option 4: Take an of hard-coded, customised product information, pricing and promotions. The bank needs a “heart transplant” incremental approach to (core system modernisation), but it needs to do it in a way that won’t kill the patient on the operating table (lower digital transformation cost, lower risk, faster ROI). In short, modernising legacy core systems is essential, but banks need to do it in an incremental, bite-size approach.
Source: Zafin
relationships with their customers that will Goldman Sachs said Marcus had yet to opportunities. We’re seeing specialisations. significantly inhibit the ability of neobanks to become profitable. Challengers have had a Grasshopper Bank, for instance, is focusing steal market share.” hard time growing their share of wallet, even on the New York area, specialising in lending Sunderji notes that the threat currently if they have been successful at acquiring to high-growth entrepreneurial SMEs in the posed by neobanks to the business models of customers.” technology space. Others focus on specific the major US incumbent banks is relatively geographies, demographics or sectors.” small. REGIONAL BANKS Steele adds that challenger banks typically “But that risk will likely rise significantly have a wide variety of customers, but most in the coming years, as well-known Mike Hatch, national sales manager at of them are consumers with existing bank European neobanks enter the US market and Finastra US, says US regional banks are accounts who are testing the features of the consumers are exposed to a more relevant and starting to think about creating digital- challenger bank. personalised digital banking experience,” he only platforms as a way to transcend their “The modern consumer holds between five says. geographical limitations. and eight financial accounts between deposits, Celent digital banking analyst Stephen “Some regional banks are working together credit cards, car loans, etc.,” she continues. Greer does not think direct banks are taking to find ways to collaborate with fintechs, so “The challenge for any bank – but clients from incumbent bricks-and-mortar they can offer digital banking and payment especially for neobanks – is how to provide banks, nor are they winning customers who services beyond their bricks-and-mortar enough value, and leverage the data and are new to banking such as young adults. branches,” he says. “For example, a number of the relationship, in order to expand your wallet share with that customer. Ultimately, challenger banks need to figure out how do they move beyond being a novelty to Challengers have had a hard time growing becoming a customer’s primary bank.” But Steele believes that neobanks and their share of wallet, even if they have challengers represent a threat to the status quo, and the way in which banks do been successful at acquiring customers business. “They are providing an Amazon- like experience, and putting the customer experience and customer needs at the “They’re attracting customers who use community and regional banks have formed forefront of their business rather than them as a spending account, not a primary a consortium called Alloy Labs Alliance, banking products,” she says. bank account,” Greer says. “People don’t set which is managed by Fintech Forge, in order “Small bricks-and-mortar banks are still up direct deposits of their salaries into their to pool their resources and explore fintech nimble enough to respond, and large banks accounts with direct banks, but just take opportunities.” have the resources to build or buy. Those advantage of their nice spending tools. Emily Steele, EVP, North America field facing the biggest threat are the mid-tier “There’s no indication that challenger banks’ operations and delivery at Temenos, notes: banks that are large enough that they have a offerings have been profitable. In fact, most “Within the category of challenger banks in more complex portfolio, but small enough evidence suggests that they haven’t been the US, only one company is pursuing a that their personnel and revenues are tied up profitable. For example, Barclays cancelled nationwide banking licence, Varo Money, in regulation and managing operations, rather its plans for a direct US digital bank after with others focusing on state or regional than investing in innovation.” <
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RBI November 2019.indd 13 18/11/2019 16:08:45 research | mckinsey
the last pit stop? time for bold late-cycle moves Over the past few years, there have been clear signs that the banking industry has entered the late phase of the economic cycle. McKinsey & Company has published its Global Annual Review 2019, outlining key archetypes to help banks develop late-cycle priorities. Evie Rusman writes
cKinsey’s report suggests that The definition from McKinsey is that Challenged Banks the banking industry is not in banks in this section serve a large share of a Unfavourable markets are the driver of this Mthe best shape as it approaches geography, region or customer segment, and category. McKinsey reveals that around 35% the end of the current economic cycle. operate in favourable market conditions. of banks globally are both sub-scale and suffer For instance, the report shows that nearly The consultancy suggests that the clearest from operating in unfavourable markets. As 60% of banks are reporting returns below the goal is to reinvest capital and resources a result, their business model is flawed and cost of equity. This economic slowdown could intelligently in innovation and further scale sense of urgency minimal. be damaging to the industry, McKinsey warns. for the next cycle. In order to survive a downward outlook, Speaking to Forbes, London-based McKinsey suggests that these banks should McKinsey partner Chira Barua, says: “A Resilients merge with similar banks or sell to a stronger majority of banks globally may not be Around 25% of banks have maintained buyer, as this may be the only option if economically viable. Last year we talked leadership in challenging markets. Banks reinvention is not feasible. about scale, this year we are still on scale but in this category should focus on expanding with an emphasis on late cycle; margins have BOLD MOVES compressed, loan growth has gone down, these are warning signals for the industry.” McKinsey argues that this research comes The report also argues that the differences at a time when risk costs are extremely low, between the 40% of banks that create value and therefore, the fact that 60% of banks and the 60% that “destroy” it are geography, still destroy value calls for bold actions. The scale, differentiation and business model. A majority of suggestion is that more creative, forward- According to McKinsey, scale in banking thinking brands are likely to come out top in – be it across a country, region or client banks globally the next cycle, with others risking becoming segment – generally correlates with stronger “footnotes in history”. returns. However, McKinsey also states may not be Ultimately, McKinsey stresses the that there are still small banks with niche importance for banks to consider propositions generating good returns. economically viable implementing radical or inorganic moves. For Underlying constraints of a business model instance, by getting rid of old legacy software may also be an issue, as well as differences in and converting to newer, more advanced market type. McKinsey highlights that banks technology, incumbents can lower costs and have the ability to take immediate necessary beyond their direct set of customers and minimise outages. This makes for a better steps to reinvent themselves and change their products through different strategies such customer experience, and will likely result in destinies. as ecosystem plays and innovation, suggests banks producing better returns. The report aims to help banks enter the late McKinsey. Furthermore, the report pushes the idea economic cycle by arranging them into four that leaders should stretch their operating segments: market leaders, resilients, followers, Followers models to look at monetisation options and challenged banks. McKinsey shows that about 20% of banks beyond banking. have not achieved scale, and are weaker than McKinsey also highlights that not all Market leaders their peers. McKinsey argues that this places banks are made equal – whether it be in McKinsey reports that around 20% of them at risk from a downturn, so they must their starting economic position or the banks globally capture around 100% of the act quickly to build scale and shift business attractiveness of the markets and business economic value added by the entire industry. models to ultimately cut costs. models in which they operate. <
14 | November 2019 | Retail Banker International
RBI November 2019.indd 14 18/11/2019 16:08:45 research | oracle
onboarding processes to meet customer needs. Data has become an important tool for data-driven banks to fully understand the customer. PwC’s Retail Banking 2020 report shows that 61% of bankers say a customer-centric business model is “very important”. The strategies for argument is that a customer’s spending patterns create data that can help banks to “hyper-personalise” rewards. For traditional banks, customer data growth and profit is commonly used to produce monthly statements and static balances. Digital Technological advances and progressive regulatory banks, however, will deploy technology to generate dynamic data that can, for example, environments are encouraging banks to develop track spending against savings goals. Oracle open, collaborative ecosystems. Evie Rusman emphasises the importance of incumbents analyses Oracle’s latest research into this critical area adopting this technology to develop a personalised service. n the digital age, banks have to adapt working at breakneck speeds to determine how they operate in order to compete the best approach to remaining competitive UNDERSERVED SMES Iwith the rise of non-banks and fintechs. amidst the advent of new entrants. There is Oracle’s latest report, Beyond Digital: Data- immense opportunity for both traditional The Oracle report argues that digital banks Driven Strategies to Grow, Scale and Profit, and new digital banks by harnessing the right need to demonstrate that they can manage examines current examples of innovation technology and use of data effectively to relationships with SME customers, involving across the banking sector. deepen their offerings and their share of the multiple products and transaction types. The idea presented by Oracle is that data customer wallet.” According to Oracle, these fintechs must and technology have the ability to enhance The survey also points out that 69% of embrace Open Banking technology to the customer experience, with a prime consumers want their entire financial lifecycle redesign the customer journey; this includes example being the Asian banking market, on digital channels, and 30% of consumers an API strategy, front-end customer-facing where customers have grown in wealth and are open to trying a fintech or virtual bank applications to the back-end platforms, data connectivity, and sentiment towards new option. Therefore, the suggestion is that governance, and the operating model. methods of banking has also risen. consumers are demanding more sophisticated, When data is harnessed through analytics According to Oracle, this creates the perfect smarter and more relevant digital experiences. and enabled with the right APIs, banks can conditions to support the growth of digital become empowered with insights and agile banks and a move towards better banking. CUSTOMER ACQUISITION processes to improve SME experiences. Venky Srinivasan, group VP, Asia-Pacific, Oracle’s report emphasises how digital Japan, China and Middle East at Oracle, According to PwC’s data, interest in digital banks need to consider how they can ensure says: “Traditional banks are facing increasing banking is markedly stronger among the compliance with a lower headcount and no competition in service innovation, which under-40s. Additionally, research suggests physical presence. It states that automation reinforces the need to redesign conventional that higher-income groups express the and straight-through processes must be banking models. Virtual banks may be strongest interest in digital banks, due to enabled to ensure ongoing compliance. nimble compared to the incumbents; still, having higher expectations. Scalability is also a factor. Oracle outlines they face three immediate challenges: they Oracle warns that banks need to grow that without scalable, robust infrastructure, need to demonstrate to regulators their at scale, leveraging data insights to bring digital banks will encounter problems. ability to comply, they need to monetise data, financial services products to market at a New ecosystems present a significant and they need to turn compliance into a more competitive price point. It also explains opportunity to respond faster and more competitive advantage.” that these capabilities are often developed in accurately to new demands, giving customers an open, cloud-based banking infrastructure. fewer reasons to explore alternatives outside DIGITAL JOURNEY It is obvious that complex account- the bank’s ecosystem. By using Open Banking, opening processes and delays leave customers banks can better understand consumer needs Oracle outlines that banks often struggle frustrated, and may result in banks at all stages of their financial lifecycle. with the problem of attracting and retaining losing business. According to Forrester, Furthermore, customers now expect customers. According to an Oracle survey, abandonment rates for online banking the right services instantly without any customer satisfaction with traditional banks applications are at 97.5%. complications. As a result, Oracle suggests decreases as the customer relationship Oracle argues that there is a shift towards that the ability to tie options for e-commerce, progresses across the financial lifecycle. customer-centricity owing to the rapid transport and lifestyle into one seamless Harjeet Baura, Asia-Pacific digital banking growth of digitally aware customers protected digital banking experience is critical. This leader at PWC, says: “The landscape has by data privacy regulations. It also highlights adds value, so banks can avoid simply being a changed so rapidly that traditional banks are that banks can no longer rely on legacy commodity service provider. <
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RBI November 2019.indd 15 18/11/2019 16:08:45 feature | brand values
brands: how are financial institutions shaping up?
When it comes to branding, financial institutions have never really topped the list. This year, Interbrand has once again published its table for the top 100 global brands. Evie Rusman speaks to the financial services operators that have been successful
ast month, Interbrand celebrated second spot with a value of $167.7bn, while up a place in the ranking to 23rd overall. 20 years of its Best Global Brands Amazon sported one of the biggest rises in Amex’s brand value currently stands at LReport. With this comes hope for value, up 24% to $125.3bn, retaining its $21.6bn, up 13%. Following Amex, was financial services businesses, which have third place ranking. JPMorgan in 25th place with a brand value of recorded significant growth in the last year. Some brands, however, suffered a decrease $19bn, an 8% growth. This is promising because, in comparison in brand value, including Coca-Cola, which The third-highest financial institution to big brands like Amazon, banks and other dropped 4% to $63.4bn, and Facebook, was Citi, placing 41st overall with a brand financial groups have not shaped up well in which fell 12% to $39.9bn. value of $12.7bn. However, the brand to the past. There were three new entrants on the experience the fastest overall growth was Charles Trevail, global CEO at Interbrand, list: Dell Technologies, Uber and LinkedIn. Mastercard, achieving a 25% growth rate and says: “Twenty years on from our first report, Uber boasts a brand value of $5.7bn, having a brand value of $9.4bn. This resulted in an customers today are more informed, more recently dipped its toes into the finance eight-spot leap for the payments firm from connected and more demanding than ever market with the launch of the Uber credit 70th place to 62nd. before through a combination of wealth of card, which features a host of rewards and Raja Rajamannar, chief marketing and choice, erosion of loyalty and shifting frames cashback offers. communications officer at Mastercard, says: of reference, wanting immediacy, abundance “The brand management playbook is being and intimacy – all at the same time. FINANCIAL SERVICES rewritten for the digital age. Bold moves are a “The age of brand positioning is over. In must for being top of mind, and unexpected a world where customer expectations will There were 12 financial services businesses in initiatives that anticipate peoples’ latest continue to move faster than businesses, the top 100 in 2019, similar to last year. desires are a must for staying there. static brand positions and incremental These 12 institutions represent $145bn in “It’s fantastic to see our efforts being change will just about keep brands in the brand value in the rankings; however, none recognised across all industries. It is a game, but it will take brave – we would say reached the top 20. This could be down to validation that we are forging the right path.” ‘iconic’ – moves to make brands leap ahead of many of the sector’s leading brands being slow Commenting on Mastercard’s success, customer expectations and ultimately deliver to embrace disruptive forces of technology. Interbrand London CEO Christian Purser extraordinary business results.” Meanwhile, Apple, Facebook and Google tells RBI: “Best Global Brands 2019 lists Topping the list again is Apple, which has are making bigger leaps into the financial 12 financial services brands in the top a brand value of $234.2bn, a 9% rise year on services industry. Again, at the top of the 100, representing $145bn in brand value. year. Google grew another 8% to remain in financial list was American Express, moving Mastercard’s brand value has risen fastest of
16 | November 2019 | Retail Banker International
RBI November 2019.indd 16 18/11/2019 16:08:47 feature | brand values
all this year, and its ascent has been fuelled in FINANCIAL BRANDS IN THE INTERBRAND TOP 100 part by its ongoing transition from payments provider to digital payments innovator.” Ranking Brand Value ($m) Growth 2018-2019 Spain’s Santander increased its brand value 23 American Express 21,629 13% to $8.5bn, growing 13%. Enrique Arribas, 25 JP Morgan 19,044 8% head of brand and corporate marketing at 41 Citi 12,697 10% Banco Santander, tells RBI: “For Santander, it’s an honour to be one of the world’s 43 Allianz 12,078 12% most valued brands according to the most 46 Axa 11,830 6% prestigious international brand rankings. 47 HSBC 11,816 5% Santander has been part of this ranking since 53 Goldman Sachs 11,352 -4% 2009; it is remarkable the increase in value 55 Visa 10,756 19% experienced from 2014 to 2018. “Our brand has been evolving since its 62 Mastercard 9,430 25% inception, modernising, adapting to the 67 Santander 8,521 13% environment, in many cases anticipating the 69 Morgan Stanley 8,185 -7% changes, and above all, looking for always 72 PayPal 7,604 15% be close to people. The last few years have Source: Interbrand been the key to consolidating our leadership position, betting on innovation in areas such “We utilise these partnerships to support its offering to meet the needs and desires of as digitisation, international expansion or our clients’ objectives, enable their customers the consumer. increasingly responsible banking.” to experience the magic of these events, and Rajamannar tells RBI: “We constantly showcase Visa’s innovations in the payments measure how Mastercard is perceived as VISA MOVES UP space,” explains Biggar. a brand. What is the likeability of this “For example, at WWC, we showcased brand? What is the approachability of this Another financial institution that has seen innovative ways to pay alongside our brand? There is a perception out there that significant growth is Visa, which moves multisensory branding – sound, animation Mastercard is a credit card brand because up the ranking this year from 61st to 55th and haptic vibration cues – that together the brand was associated with the category position. The global payments company now express our brand promise of speed, security of credit cards for 50 years. That’s something boasts a valuation of $10.8bn, a 19% growth and trust.” that we’re trying to change.” since 2018. Similarly, Biggar is aiming to ensure that Lynne Biggar, CMO at Visa, tells RBI KEEPING UP WITH FINTECHS Visa’s brand value will continue to as a result about Visa’s current strategy and explains of a strong focus on client satisfaction. how quality branding is essential in the quest With the rise of fintechs and non-banks, “We are confident that our brand value will to keep clients happy. She says: “The Visa incumbents must compete to remain relevant. continue to grow, given our constant focus brand is one of our most valuable assets, and Purser warns that the bigger, longer-standing on the needs of our clients, consumers and is highly valued by our clients as well. It is a operators cannot just sit back if they want to emerging payments players,” she says. representation of all we do at Visa, from our remain successful. “We are continuously innovating around client service to our product and experience He says: “Beyond the Mastercard story, the our product solution set ahead of demand. value to our employee experience. broader financial services sector is growing For example, we have worked with a variety of cities and municipalities to launch ‘tap to pay’ transit capabilities. The brand management playbook is being “We are also well underway with planning for Olympics and Paralympics Tokyo 2020, rewritten for the digital age. Bold moves a tremendous opportunity for us and our clients – not only in Japan, but globally. And are a must for being top of mind we continue to advance our efforts to support women as entrepreneurs, small business owners, consumers and athletes through a “Externally, we bring our brand to life in brand value, but the biggest brands are number of leading programs and activities. for our key audiences in many ways, becoming ever more vulnerable to the threat “We have an enormous opportunity including through exclusive global and local of disruption from fintech, big tech and to ensure that digital payments advance partnerships like those with the Olympics regulatory pressures. Global financial service individuals, businesses and economies. So, as and Paralympics, the National Football brands may be big and steady, but that’s what big as 2019 has been, we expect 2020 to be League, Africa Cup of Nations and Shanghai people said about retail before Amazon, and even more break-through – that is just a way Fashion Week. transport before Uber.” of life at Visa! Visa is also the world’s largest sponsor of Ensuring that brand growth continues “And we will continue to position ourselves women’s football, and recently worked with is vital for any institution, and Mastercard as being everywhere you want to be. It’s a very the Women’s World Cup (WWC) in France. promises to continue to innovate and shape fortunate tagline.” <
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RBI November 2019.indd 17 18/11/2019 16:08:48 News | Digest
november news Emirates NBD launches instant mobile account opening Emirates NBD has announced the launch of at their convenience, without the need to visit of three Mercedes Maybach S-650 cars and instant account opening for new customers a branch or fill forms.” 180 Omega Speedmaster watches. from a smartphone. New customers must scan their passport In September, Emirates NBD introduced a The new offering allows salaried UAE and Emirates ID documents, and supply a digital business bank, E20, for entrepreneurs residents to open a current or savings account ‘selfie’ to open an account instantly. They and SMEs, with an aim to support the digitally through the Emirates NBD mobile will then receive a welcome pack including domestic business sector. This means sole banking app, which is available at the Apple a personalised debit card and chequebook. proprietors, freelancers, gig economy workers, or Google Play app stores. Customers can additionally request a credit start-ups, fintechs and SMEs can open an Suvo Sarkar, SEVP and group head at card, and refer friends and family members to account with E20. Emirates NBD, said: “As the world turns open an account. The bank has also deployed Amazon Alexa increasingly digital, consumers expect All new customers opening accounts to launch voice banking, enabling users immediate and anytime access to banking through the app and maintaining AED5,000 to use the Emirates NBD Alexa ‘skill’ to services. Our new mobile account opening ($1,361) in average account balances will be receive banking updates, and interact with is a big step in this direction, where new entered into the bank’s ‘Save. Win. Drive.’ an Amazon Echo smart speaker to receive customers can open an account instantly and promotion, giving them a chance to win one information on balances and transactions. < NatWest offers Apple Pay to business customers to how our customers bank with us, and Apple Pay will allow SMEs to make safe, fast business payments with minimal effort, leaving them with more time to get on with doing what they do best: running their business.” The news comes as Apple Pay was named the most popular mobile payment app in the US, overtaking Starbucks. In 2018, 27.7 million Americans used the app to make purchases, a figure that is expected to reach 30.3 million in 2019. Furthermore, Google Pay users are expected to rise to 12.1 million users in 2019, while Samsung Pay users should reach 10.8 million. In October, Dutch bank ABN Amro announced the launch of Apple Pay to its customers. The payments app also expanded its European reach, with bunq and ING also adopting the service. Customers with iPhones or Apple Watches can now pay both in store and online, avoiding the need to fill out account forms. Every Apple Pay purchase will require authentication through Face ID, Touch ID or a passcode. NatWest has launched Apple Pay for its James Holian, COO, commercial and With Apple Pay, the actual card business banking customers. private banking at NatWest, commented: numbers are not stored on the device or The UK bank introduced the feature “We’re thrilled to be bringing the ease and Apple servers; instead, a unique Device for its full range of Visa debit cards to its security that Apple Pay offers to our SME Account number is assigned, encrypted 1 million business customers. NatWest customers. and securely stored. Each transaction hopes this will compliment its range of “NatWest is committed to providing is authorised with a one-time unique SME payment options. simplicity and flexibility when it comes dynamic security code. <
18 | November 2019 | Retail Banker International
RBI November 2019.indd 18 18/11/2019 16:08:50 News | Digest
CaixaBank opens ‘all in one’ flagship hub in Barcelona after becoming the first company to begin the transformation of traditional bank branches in 2013 by designing the Store branch, which over the years has become the standard for the entire sector. “We have united design, technology and customer knowledge to create an absolutely exclusive model. In terms of surface area, ‘all in one’ is the largest flagship banking hub in Europe. In terms of customer experience quality, we want it to be the best.” The hub has a 80 employees servicing 22,000 customers. It includes a cafe, an auditorium, over 30 offices and ATMs with facial recognition. There are also self-check- in machines to identify customers and let advisers know they have arrived. The branch opened on 6 November, and aims to transform the financial customer experience and introduce technology to increase innovation in all the distinctive elements of a bank branch. María Alsina, territorial director at CaixaBank Barcelona, said: “This hub wants to be far more than a branch, but somewhere where all businesses converge. It is aimed at all types of customer, and not only offers the best financial services, but also gastronomic Spain’s CaixaBank has opened a new largest financial experience hub, and offers and other valuable content. It will be open flagship hub in Barcelona, which aims to specialised attention for all financial business to the entire city. ‘all in one’ was born at the “revolutionise customer experience in the models, including individuals, self-employed service of CaixaBank’s customers, but also at physical service channel”. workers and SMEs. the service of Barcelona.” The new ‘all in one’ branch is located in CaixaBank MD Juan Antonio Alcaraz ‘all in one’ Barcelona is CaixaBank’s second the Francesc Macià square, in one of the said: “CaixaBank has once again decided to new branch model, following the opening of city’s Bauhaus-style buildings. It is Europe’s promote innovation in the physical channel, ‘all in one’ Valencia in July. < BofA joins IBM’s public cloud platform Bank of America (BofA) is the first collaborations in the financial services The two companies are also working collaborator to join IBM’s new financial industry cloud space. This industry-first with Promontory, an IBM business unit services-ready public cloud platform. platform will allow Bank of America to use that focuses on regulatory compliance The bank will host key applications the public cloud. consulting for financial services. and workloads to support customer “This will put data security, resiliency, Bridget van Kralingen, SVP, global requirements and privacy and safety privacy and customer information safety industries, clients, platforms and expectations. needs at the forefront of decision making. blockchain at IBM, said: “The financial IBM’s new platform aims to address the By setting a standard that addresses the services-ready public cloud represents needs of financial services institutions concern of hosting highly confidential an ongoing focus from Bank of America, in regulatory compliance, security information, we aim to drive the public IBM and Promontory to help develop a and resiliency. It hopes to enable cloud to a safety level that is unmatched.” technology ecosystem where regulations financial institutions to transact with IBM and BofA have worked together can be addressed. Together, we plan to technology vendors that meet the intensively to develop the platform’s help our customer address their ongoing cloud’s requirements. The new solution control requirements. The public cloud can compliance requirements.” is expected to run on IBM’s public cloud, potentially enable independent software Promontory CEO Gene Ludwig added: which uses Red Hat OpenShift. vendors and software-as-a-service “We recognise that we must help create Cathy Bessant, chief operations and providers to focus on their core offerings an environment where financial services technology officer at BofA, commented: to financial institutions, with the controls institutions can address their regulatory “This is one of the most important for the platform put in place. requirements and expectation.” <
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RBI November 2019.indd 19 18/11/2019 16:08:51 News | Digest
Temenos: Latin American banks drive digital expansion experiences and lower costs. The report says 39% of respondents cite migrating client usage to digital from physical channels as their top strategic priority for 2020; this is followed by humanising the customer experience (38%) and mastering digital marketing and engagement (32%). Furthermore, Latin American bankers are focusing digital investment on cybersecurity and cloud technologies. “With our solutions, Prestanómico enables customers to apply for a loan and receive a response within four minutes. Their solution is so efficient that A Temenos study has found that Latin “There is a definite need in Latin Prestanómico started offering ‘lending American banks must invest in digital America for banking services that as a service’ to process loans that are technology while cutting costs to boost address consumer demands. That’s why distributed by other financial institutions in financial inclusion. banks like Prestanómico and Banco Azul Mexico,” added Ramos O’Reilly. The survey, conducted by the Economist choose Temenos. We offer the winning “Banco Azul, a locally owned start-up in Intelligence Unit (EIU), shows that 35% of combination of the richest packaged El Salvador, is one of the fastest-growing retail bankers named this a top priority for banking functionality and the most banks in the country. We look forward to 2020. In addition, according to World Bank advanced cloud-native, cloud-agnostic continuing to partner with banks in the figures, two in every five Latin American API-first technology, delivering tangible region to expand the reach of financial workers have no bank or savings account. business benefits to banks.” inclusion.” Enrique Ramos O’Reilly, MD, Latin The EIU report highlights that politicians According to the study, competition is America and Caribbean at Temenos, and regulators are taking action to make driving banks to act. Partnerships between commented: “Banks need to digitally the banking system more competitive. It tech giants an fintechs rank second to transform in order to create innovative also shows that they are tackling the high payment players as the biggest immediate ecosystems, move to the cloud to costs that discourage consumers from non-traditional threat to their business. drive down costs and provide more pursuing banking services. Additionally, 68% of respondents expect accessible banking services, or offer highly Immediate priorities include investing peer-to-peer lending to be available on personalised services to consumers. in digital technology to deliver quality banking platforms by 2025. < Tink appoints former Stripe exec as country manager Open Banking platform Tink has appointed to our team, and look forward to working Stripe’s former head of EMEA banking, side by side to cement our market-leading Rafael Plantier, as its new country manager position in the UK and Ireland. for the UK and Ireland. “Over the next 12 months, we want The appointment is part of Tink’s to prove our value within these markets ambition to equip banks and third-party as a strategic partner for banks, helping providers with best-in-class technology them embrace the exciting Open Banking solutions. opportunities ahead.” Plantier said: “The UK and Ireland is Tink launched in Sweden in 2012, since charging ahead of the rest of Europe in when it has aimed to help banks, fintechs its Open Banking journey. It’s a brilliant and start-ups to develop data-driven launchpad for challenger banks and financial services. It has more than 250 fintechs, and a thriving hub of investment employees globally, and allows customers and innovation. to connect to more than 2,500 banks in 14 “I’m excited to be right at the heart of markets including the UK, Sweden, France, Rafael Plantier, Tink the Open Banking revolution, and look Germany and the Netherlands. forward to this new leadership challenge to role, he aims to grow Tink’s UK and Irish In September, the Open Banking turbo-charge Tink’s growth in the UK and arm, building on its partnerships with platform partnered with Portugal-based Irish market.” companies including NatWest, PayPal and Caixa Geral de Depósitos, which integrated Brazil-native Plantier was formerly Klarna. Tink’s products including aggregation, head of banking for Europe, Africa and Tink co-founder and CEO Daniel Kjellén payment initiation, data enrichment and the Middle East at Stripe. In his new said: “We are thrilled to welcome Rafael personal financial management services. <
20 | November 2019 | Retail Banker International
RBI November 2019.indd 20 18/11/2019 16:08:55 News | Digest
Mastercard teams with BMO and Superbia for True Name Union will enable the True Name initiative across their Mastercard portfolios in 2020. Scott Turner Schofield, trainer at the GLAAD Media Institute, said: “Transgender, non-binary, and gender non-conforming people are consistently placed at greater risk of discrimination, harassment and overall denial of everyday services when their identification does not match their true identity. “The implementation of Mastercard’s True Name feature is a crucial step forward in helping to reduce these risks by allowing trans, non-binary, and gender non- conforming people to have financial products that accurately reflect who they are.” Research found that 32% of individuals who have shown IDs with a name or gender Mastercard has partnered with BMO Harris both internally and externally. We are that did not match their presentation reported and Superbia Credit Union to implement the continuing to call on the industry to help us negative experiences. These include, being True Name feature for their card offerings. ensure that each and every person’s financial harassed, denied services or being attacked. The collaboration will allow people to use products can reflect their true identity.” Superbia Credit Union founder Myles their true name on their eligible card without The True Name initiative was developed Meyer said: “The sole focus of Superbia the requirement for a legal name change. to reflect the true identities of many in the Credit Union is to work on behalf of the Cheryl Guerin, EVP marketing and transgender and non-binary communities. LGBTQ community to build and provide communications at Mastercard, said: “We For these communities, cards can be a source access to fair, non-discriminatory products are thrilled to have the very first issuers of the of sensitivity rather than an affirmation of and services in banking services. True Name feature on board, allowing us to who they are. “This means working alongside our partner propel one of our key values, unconditional BMO Harris will implement the feature for organisations like Mastercard, who share acceptance. At Mastercard, we strive to personal ATM and debit cards in December in our vision, and to bring those solutions cultivate a culture of inclusion that extends of this year. Meanwhile, Superbia Credit directly to community members.” < Nuxeo: FS workers believe AI can transform industry More than two-thirds of UK financial experience and improve productivity, and services (FS) workers believe AI can AI can play a significant role in achieving transform traditional practices, according these goals.” to a new study, FS workers also said the sheer volume According to a report from Nuxeo, 58% of data and information available was of respondents also say that FS firms that another challenge. According to the survey, embrace AI are more attractive places to 64% of respondents argue that using AI work. However, financial institutions have for mundane back-end processes would been slow to adopt AI in many business free their time to do more interesting functions. work. Furthermore, three-quarters of The report reveals just 34% of UK FS respondents say FS firms store information firms are using AI for improved customer across several systems that are not services. In addition, 45% of respondents connected. believe that their organisation’s inability “Quick information search and retrieval to adopt AI quick enough has already is an enormous part of the modern FS user impacted their day-to-day activities. experience. Customers simply don’t want Chris McLaughlin, chief product and to waste their time waiting for an agent marketing officer at Nuxeo, said: “AI can to find information when they are used to be genuinely transformative in FS, but it more immediate interactions elsewhere,” would appear that many organisations are added McLaughlin. still thinking about deployment rather than “With more data entering banks than are essential when managing information. getting on with it. at any time previously, it’s an issue that Additionally, addressing them can have a “It’s a challenging landscape in FS right the industry collectively must be willing real impact in terms of improved customer now, and firms need to improve the user to address. Speed, accuracy and agility retention and loyalty.” <
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RBI November 2019.indd 21 18/11/2019 16:08:58 industry insight | finastra PRIVATE BANKER
A separate survey by the DMA showed HEAR • NETWORK • DISCOVER • CELEBRATE that 49% of businesses think that GDPR, wechat and which was implemented in early 2018, has positively impacted consumer trust when it comes to data handling. Financial firms Private Banking and Wealth Management: should be capitalising on this growing trust the ongoing rise and squeezing as much value out of customer Switzerland 2019 Conference and Awards data as possible. The possibility of similar super-apps Swissôtel Zürich • 11 December 2019 appearing in the West needs to be taken of the super-app seriously, and we can no longer ignore big tech initiatives like Facebook’s Libra project. The fourth annual Private Banking and Wealth Management Switzerland event Banks in Europe and North America should will explore how the industry is adapting to market and technological shifts. There are around 1 billion users of Tencent’s WeChat, which see these developments as a wake-up call. As the sector faces increasing pressure from non-traditional market entrants, gives them access to almost countless useful services, all They need to learn from what is working elsewhere and consider how they can serve squeezed margins and digital change, private banks and wealth managers must seamlessly integrated onto one platform under one log-in. customers better, not just in banking, but also capitalise on the opportunities that disruption offers during this pivotal time. Banks should take note, writes Finastra’s Martin Haering in other adjacent areas. To quote KPMG’s paper, Super app or super disruption: “The Drawing on Verdict’s analysis and business intelligence, the event offers a eChat began as a messaging and investment products. Go-Jek recently world of industry vertical is giving way to a unique arena to discover the trends and opportunities driving market growth. platform not unlike WhatsApp, announced a partnership with Siam world driven by consumer experiences. In Wand gradually evolved to offer Commercial Bank to allow the bank’s this environment, the value of a bank will be A daytime conference will include targeted sessions, interactive debates and ride-hailing, payments services, hotel and customers access to its e-wallet, and is measured by the value of their ecosystem as dedicated networking opportunities, followed by a black-tie gala awards dinner flight booking and games. awaiting approval from the Bank of Thailand much as the value of their balance sheet.” celebrating the best in private banking and wealth management in Switzerland. Nowadays, WeChat can be used to get a to start offering loans. Banks also need to seriously reconsider how takeaway, book doctor’s appointments or While the vast majority of financial services they optimise their customer data. Siloed We look forward to welcoming you. flights, pay utilities and even file for a divorce. offered on these apps are still underwritten data is one of the biggest barriers to data Super-apps such as WeChat began by incumbent banks, these banks are being utilisation and personalising services using appearing across Asia-Pacific and beyond over disrupted from the front-end customer AI, and banks are being held back by legacy the last decade. AliPay in China, Grab and experience and being pushed into the systems that cannot support this technology. Go-Jek in Indonesia, Line in Thailand and background, much akin to utility providers. To compete, firms must invest in their now Rappi in Latin America are all examples organisation and management of data, and of super-apps that began as single-service BANK BENEFITS their analytics capabilities. offerings for ride-hailing, food delivery or So, what are the options? Banks can messaging. As they rapidly expand into other For now, banks are benefitting from the extra become mediators, opening up their service areas, including financial services, digital channels provided by these super-apps, infrastructure to complementary third parties they are now beginning to cater to the entire as they are given increased visibility and such as health and insurance providers, customer lifecycle. access to a vast number of consumers. But retailers and even travel apps. Through these super-apps, these firms are if they are to survive in the long term, they Co-operating with other businesses to able to collect vast amounts of data needed to will need to seriously rethink their service expand offerings means they can start to hyper-personalise customer experiences and offering and business model, or risk fading support new aspects of the customer lifecycle. provide offerings on a level that, at this stage, into oblivion. For example, challenger bank Starling allows incumbent banks can only dream of. In many For those customers that are willing to users to integrate Direct Line insurance into cases, artificial intelligence is then used to share their financial data, predictive analytics their bank account, making it easy to get analyse the data to learn even more about the can be used to proactively suggest suitable home insurance quotes in-app. Additionally, individual, and offer tailored products and products and services, and speed up the Open Banking and open APIs that pull bank services exactly when they are needed. onboarding process. accounts together on one platform mimic the The likelihood of these super-apps While consumers in the West may bundling of financial services found in super- continuing to disrupt banking in Asia-Pacific traditionally be more cautious about apps, and help to make handling finances Gold Partner Silver Partners Bronze Partners in the coming years is high. Last year, Grab sharing their data, a survey last year by the seamless for customers. Financial started offering insurance to Open Data Institute showed that younger Banks will increasingly have to fight for a consumers, and this year will also offer loans generations are increasingly willing to do so customer-facing position in financial services, to SMEs and micro-entrepreneurs. Grab is where it brings a fair value exchange in return. so that they can keep acting as data gatherers capable of assessing users’ creditworthiness It states: “Thirty-eight percent of 18- rather than just back-end data providers for in greater detail than traditional scoring 24-year olds would be happy to share data super-apps and fintechs. The key to this is Panel Host Partners Media Partner methods by analysing data collected via about their spending habits to help save innovative co-operation with tech platforms GrabPay, ride-hailing and location. them money via things such as new savings and strategic use of Open Banking, because WeChat and AliPay also both offer accounts, insurance policies, shopping locking down data will only mean getting basic banking services, as well as saving discounts, compared to 15% of over 55s.” locked out of a new world of innovation. <
To register now, or for more information, contact Carlo Mancini on 22 | November 2019 | Retail Banker International [email protected] or call +44 (0)20 7832 3584
RBI November 2019.indd 22 18/11/2019 16:08:58 PRIVATE BANKER
HEAR • NETWORK • DISCOVER • CELEBRATE Private Banking and Wealth Management: Switzerland 2019 Conference and Awards Swissôtel Zürich • 11 December 2019
The fourth annual Private Banking and Wealth Management Switzerland event will explore how the industry is adapting to market and technological shifts. As the sector faces increasing pressure from non-traditional market entrants, squeezed margins and digital change, private banks and wealth managers must capitalise on the opportunities that disruption offers during this pivotal time. Drawing on Verdict’s analysis and business intelligence, the event offers a unique arena to discover the trends and opportunities driving market growth. A daytime conference will include targeted sessions, interactive debates and dedicated networking opportunities, followed by a black-tie gala awards dinner celebrating the best in private banking and wealth management in Switzerland. We look forward to welcoming you.
Gold Partner Silver Partners Bronze Partners
Panel Host Partners Media Partner
To register now, or for more information, contact Carlo Mancini on [email protected] or call +44 (0)20 7832 3584
RBI November 2019.indd 23 18/11/2019 16:08:59 RBI November 2019.indd 24 18/11/2019 16:09:01