Mobile Commerce Guide Engage Customers and Build Loyalty in Developed and Emerging Markets Mobile Commerce Guide Engage Customers and Build Loyalty in Developed and Emerging Markets 1 TABLe Of COnTents Mobile Commerce Guide Engage Customers And Build Loyalty in Developed and Emerging Markets 11 FOREWORD Published by: SAP AG By Sanjay Poonen, President, Corporate Officer, Technology Solutions Dietmar-Hopp-Allee 16 69190 Walldorf and Head of Mobile Division, SAP Germany Copyright © 2013 SAP AG or an SAP affiliate company. All rights reserved Library of Congress Cataloging-in-Publication Data 14 PART 1: MOBILE COMMERCE: MAPPING THE COMPETITIVE LANDSCAPE SAP Mobile Commerce Guide Engage Customers & Build Loyalty in Developed and Emerging Markets Edited by Peggy Anne Salz 16 Mobile: A License To Thrill p. cm. A look at how mobile is impacting business, people and society at every level, ISBN Number: ISBN 9780988588677 1.Mobile technology. 2. Mobile commerce everywhere on the planet. Library of Congress Control Number: 2013906059 By Tomi T. Ahonen, best-selling mobile author Printed in the United States of America Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed 22 Who Will Lead The Mobile Commerce Charge? in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. The advance of mobile and the breakneck pace of technology innovation are coming together to provide amazing opportunities for banks to extend financial services to new and existing customers - but banks aren't the only ones taking action. By Pradipto Pal, Executive, Accenture Mobility 34 Money 2020 And The Business Case For Mobile Payments: The Role Of Rewards Compelling reasons why financial institutions need to leverage the consumer data that is locked in their debit and credit card products to better service consumers and better partner with retailers to drive commerce. By Aaron McPherson, Practice Director, Worldwide Payment Strategies, IDC Financial Insights 38 Mobile Commerce And Financial Institutions In Latin America: An Evolving Ecosystem Banks are jockeying for competitive advantage using some rather sophisticated smartphone apps and approaches that deliver utility, drive engagement and stand out from the crowd. By Mary A. Gramaglia, Director of Sales, Latin America, Mobile Commerce, SAP 2 Mobile Commerce Guide Engage Customers and Build Loyalty in Developed and Emerging Markets 3 43 Digital Money Sweeps Mexico And Brazil 82 PART 3: BANKING IN DEVELOPING MARKETS: PLOTTING THE COURSE As the mobile money phenomenon sweeps across Brazil and Mexico banks FOR FINANCIAL INCLUSION AND FINANCIAL SUCCESS aren't the only ones lining up to transform financial services. 84 Advancing New Frontiers For Financial Inclusion By Charmaine Oak, Practice Lead, Digital Money, Shift Thought Pakistan is one of the fastest growing branchless banking markets in the world. AbacusConsulting recounts recent developments in mobile banking 50 PART 2: BANKING IN DEVELOPED MARKETS: TAKING CHARGE and the impact on the local landscape. OF CHANGE By Abbas Khan, Partner, AbacusConsulting 52 Banks: Evolve, Innovate And Embrace ‘True Multichannel’, Or Be Left Behind 92 Accelerating Mobile Banking Through Collaboration Banks must generate customer-centric insights through advanced analytics Malaysian Central Bank is on a mission to transition Malaysia to a high value-added, that will allow them to enhance products, personalize service bundles — high-income economy by 2020. A big part of the plan involves the widespread and or make way for companies that will. rapid migration to electronic payments spearheaded by MyClear. By Simon Paris, Global Head of Financial Services Industries, SAP, and By Siek Kar Teck, Director, Retail Payments Division, MyClear Matthew Talbot, Senior Vice President, Mobile Commerce, SAP 96 Mapping The Market For Financial Inclusion 59 Removing Friction To Build Relationships HBL is harnessing mobile technologies to do more than enable the delivery of At RBS Citizens the goal is to get customers in and out fast — and success innovative banking services; it is providing all people, including the poor and rural is all about delivering financial services that respect customers' time. populations, access to convenient mobile banking services that put them in control By Scott Manley, SVP, Head of Product – Delivery Channel, of their financial future. Treasury Solutions, RBS Citizens By faiq Sadiq, Head of Payment Services, Habib Bank Limited 64 The Convergence Of Mobile And Online Banking 101 Creating New Pathways For The Poorest This is the future of electronic banking that requires a common middle layer DBBL launched mobile banking services targeting the unbanked, signing up an with business logic and messaging infrastructure. average of 100,000 customers each month since the commercial launch in 2012. By Jacob Jegher, Research Director, Celent Now the bank is planning additional services using new authentication technologies 69 Breaking The Mobile Banking Mold to grow that number exponentially. Organizations must be agile. To keep pace first Tennessee Bank delivers financial By Abul Kashem Md Shirin, Deputy Managing Director, Dutch-Bangla Bank Limited services that empower executives to act fast and conduct transactions on the move. 108 Targeting Tomorrow’s Mass Affluent By Taylor J. Vaughan, Director of Treasury Management Services, first Tennessee Bank CIMB niaga, the number five bank in Indonesia, through innovative services 75 6 Ways To Wring More Value Out Of Multi-Channel Banking and social media outreach is preparing for a day when today's unbanked will The pressure is now on banks to help their customers make smarter decisions be part of the burgeoning middle class. based on increased visibility into all their accounts as they save, spend and shop. By Wan Razly Abdullah, Strategy and finance Director, PT Bank CIMB niaga Tbk By Davor Ebling, Director, Mobile Commerce Solutions, SAP 4 Mobile Commerce Guide Engage Customers and Build Loyalty in Developed and Emerging Markets 5 114 Branchless Banking Driven By ‘Disruptive Innovation’ 140 PART 5: RETAIL, CONSUMER PRODUCTS: MASSIVE Bank BTPn reveals its plans to disrupt the market with a new and cost-effective OPPORTUNITIES AT THE INTERSECTION model aimed at empowering people at the bottom of the pyramid to manage an 142 Mobile Shopping And Coupons Transform Retail interest-bearing bank account. Yankee connects the dots through recent data and surveys to show why — and By Donny Prasetya, Head of Business Development, btpnWOW! how — mobile coupons are becoming the way to lure shoppers. By Yankee Group 122 PART 4: MOBILE OPERATORS: PAVING THE WAY FOR MOBILE PAYMENTS AND MORE 148 Opportunity At The Intersection Of Retail And Mobility Smart marketers in transportation, utilities and consumer products companies 124 SIM-Based NFC: Enabling A New Level Of Interaction For Latin are exploring how they can deliver relevant, timely information, promotions, and American Big Events special offers right to the consumers’ smartphone. A string of NFC trials are taking place in Brazil just in time for the FIFA 2014 By Colin Haig, Program Principal, SAP Retail Soccer World Cup and the 2016 Olympic Games, enabling consumers to make Fast Shopper, Slow Store: A Mobile Playbook payments and access information, and highlighting new business opportunities. 153 Actionable insights and valuable advice to connect with the 'new' mobile consumer. By Valter Wolf, Market Development Director, GSMA By Gary Schwartz, CeO, Impact Mobile. 127 Open Solutions Could Help Fulfill The Promise Of Mobile Money Survival Guide: Evaluating The App Vs. Web Debate With over 100 mobile money deployments globally, only a handful have reached 161 Mobile apps vs. mobile Web is a topic of heated debate in the industry today. meaningful scale. Here are some key examples and learnings revealing what A successful approach is one that uses mobile apps and the mobile Web in the makes services tremendously successful. right combination to make shopping across all channels seamless and personal. By Sal Karakaplan, Vice President, Mobile Money, MasterCard By Panagiotis Papadopoulos, Retail Mobile Lead, SAP 131 Preparing To Deliver ‘Advanced’ Services Mobile Retailing 2.0: Connect With The Customer At The Point of Decision from enabling merchant payments to driving financial inclusion, Ooredoo 166 How retailers can realize the full potential of the greatest marketing tool ever is positioning itself to be a leading provider of mobile money services and invented to win the battle for the customer and get the edge on online rivals. one of the world's top 20 mobile operators by 2020. By Mickey Haynes, Global Principal, Mobility Solutions in Retail, SAP By Rambert Namy, Head of Mobile Financial Services, Ooredoo 171 Showrooming, Deconstructed 136 Expanding Mobile Wallet Capabilities To Encourage Customer Loyalty A guide to help retailers build the key capabilities that will allow them to clinch Celcom has made its mark with AirCash, one of the first mobile wallet services the deal and stem showrooming. to launch in Malaysia. now efforts focus on integrating AirCash into its larger By Nikki Baird, Managing Partner, RSR Research customer loyalty program. By Afizulazha Abdullah, Chief Digital Services Officer, Celcom Axiata Berhad 6 Mobile Commerce Guide Engage Customers and Build Loyalty in Developed and Emerging Markets 7 175 Consumer Focus