Global Banking & Payments Innovations coming your way! Are we ready? Speaker: Farshad Nowshadi, VP at Saman Bank, VC at Level39 FinTech-London

1. Global Banking &Payments
Innovations coming your way!
Are we ready?
 Traditional Banking Under Radical Change( Retail, Loans and F-Exchange)
 Will it effect Banks Profits and future Growth?
 New Payment Services Directive2, Big Disruption, Coming our way!
 Good for Banks and Bad for Card Companies.
 Banks new generation competitors: Apple Pay, Amazon and speculation on
Google as an eBank!
 How to play FinTech Startups
 New Technology's that will affect your Bank of the future
 Voice, BlockChain,VR/AR and new mobile Proximity services
 Building Trust & Innovation – CRM and Usability is KEY
 My Wish is to suggest what Banks/FinTech’ss should be doing for the
Future!

2. Farshad Nowshadi. M.Phil
 25 years Global Consultant to Reuters Financial
 VP-eStrategy (Advising Board) for Saman Bank
–One of the Largest Bank in Middle East
 Investor/Mentor/ to European Startup Finance-Tech companies
 L39-Canary Wharf and Google for Entrepreneur
 Got inside info on Tech/Finance Startups
 Initial Investor into GOOG
 Consultant to Microsoft Financial Services & D-Bank
 International Author of Managing Tech/Finance Books
 International Speaker( Berkeley Univ-US Bridge2014 (Silicon Valley
Investment-Iran conference)

3. Rise of the Internet/Technology
has changed Banking forever.
“Creative Disruptive”

4. Global Trend:
Death of Cash by 2025?
 “Bank Branches and just
cash dispensing ATMs will
both disappear over time!”
 Dealing with Cash has its
drawbacks..
 Big overheads to process
 Security issue & Tax
 Often associated with Money
Laundering
 Dirty
 Is your Bank Ready
for what is coming?

5. Trend Continuing : Big
Banks Closing Down
Branches.
 In Europe we see almost every day, yet
another Bank Branch closing its doors.
 HSBC, Barclays, Lloyds – All
announced last year to closed down
around 500 Branches !
 Less Branches- But Customers Need
Better Experience
 Always Banking ,
but never at a Bank!

6. Do we still
need
Branches?
–Yes, just a
few!
 I believe you do. Because..
 Customers Like to see impressive Branches-Adds Credibility
 A friendly Open and Welcoming Place (Love our Kids Areas)
 Somewhere you can go and talk face to face.
 Customers like to see some one to complain
 Physical check of Documents (KYC)

7. Branch are coming Back-
Less but more Cool
 Futuristic Branches
 The latest Emirates Banks, In
Emirates Tower-Dubai.
Shows an Example
 Some Banks Advertising
 We like to Talk to you face to
face.

8. Why are Smart
Mobiles Here!
Big Time

9. Smart Phones is here..
Good to understand WHY?
 1. High penetration of mobiles:
 Over 5 Billion mobile phone users in the world that
hugely surpass the number of credit/debit card owners.
 2. People carry their phone wherever they go, no
better device than a mobile phone for payments
 3. NFC chips or stickers can be added to the
mobile phones to make the payment simpler and
faster.
 Contactless Smart Wallets (Apple, Android, Samsung)
 4. The world is moving towards 4G: Seamless
Fast Online Internet Service
 World is Price Sensitive
 Google ONE (Retailing now at $50)

10. Your Mobile App key, to your Future!
 For Retail Banking
 Your Mobile Platform
will become more
important then the
Desktop!
 Google in 2015
 More Searched on
Mobile Vs Desktop

11. Example :Smartphone Growth in
IRAN- Its Massive
 Iran is the biggest
Mobile market in
the Middle East
Middle East now has
over 350 million mobile
phones
 Iran now has around
60% of Population with
SmartPhone (Mostly
Android)

12. Iran Example:
Usage of Payments in Iran.
As of 2016 according to CBI
 Exceptional growth in ATM/Web/Mobile
Online payments
 ATM in Use in Iran: Now ..… Over 35,000
 Debit Cards(Shetab) in use..... Over 300 Mil
 That is over 3 Cards Per person !
 4 Million POS terminals in use (Shaparak Net)
 200 Mil Transactions /Day
 Saman Bank has around 200,000

13. Rise of Tech solutions providers
challenges to the traditional Business
of Banking.
Retail, Loans and Foreign Exchange

14. New Challenges for Banks
Breaking News
CitiBank : Predicts 30% cut in it staff, due to FinTech in the next 1-2 year

15. Trend: Customers of the Future will
be less loyal and more Mobile
 UK FSA and Central Bank of America
 Have standardized Customers Mobility
Between Banks
 Move DD and Standing Orders Between
Banks in 2-7 Days Guaranteed!
 This is happening now in the UK, and around
the world soon.
 Customers “Could Save £600/Year”
 Claimed UK Government rep
 Great for “Challenger Banks”
 So what does this mean for your Bank???
 We must constantly provide a Better Service
to Keep our customers and attract others!

16. Comparison Financial Site-
Few suggestions..
 Many People starting to go straight to
Comparison Financial Services sites
 For Accounts, Loans, Mortgages etc..
 Example: MoneySuperMarket.com ,
Gocompear.com
 Old Days go to your Bank, and go with what
ever they say is coming to an end.
 Use them to your benefit
 Use them to monitor your competitors
 Ensure you are compatible (Where possible)

17. Rise of the Internet Only Challenger
Banks Due to much lower overheads
 Such as Less Employees and Bick and
Mortar overhead
 Leaner Technology (Google Docs,
Cloud etc..)
 Very few (Some with just 1 on none)
Branch(s)
 They Offer
 Better Interest Rates
 No ATM withdraw charges
 Reduced Overdraft fees
 Focused on Mobile Banking
 Examples of Challenger Bank
 US-Bank Of Internet, Moven, Ally
 UK-Atom(Metro), Fidor, Starling

18. Another Challenge-
Rise of the P2P
Currency Exchanges
 P2P Starting to undermine
Banks Exchange Rates profits
 Especially for small amounts
 They often Avoid SWIFT, and
use Local Currency Matching.
 2 new big Players
 www.CurrencyFair.com
 www.TransferWise.com
 Investors : Index Ventures and Valar
Venture, by PayPal founder Peter Thie

19. 2016: Contactless payment
exploding around the
globe!
 What could be easier just
 “Touch and Go”!
 In UAE-Mashreq bank launched
the NFC-powered sticker solution “Tap n Go”
 In the UK NFC cards have exploded!
 Today over 40+ million people with NFC cards
 Now 300,000+ retailers POS enabled NFC
 Reduce Checkout Queues
 US at last joining in the revolution
 Limited to card small payments (£30 in UK)
 But Laying the global Framework for
Apple and Android Pay roll out

20. Wearable NFC Devices
 Apple and Google Pixel
Watch-NFC
 Free From Barclays
 NFC add on devices
 Auto top up
 Can use anywhere you see on
any POS with
 Pre Load your Account
 Eventually linked to you account
 Working now
 Example-My son School
 Apple Watch

21. New Technology Provider Solution
 The main Key Player
 Apple Pay
 Android Pay
(Old name Google Wallet)
 Samsung Pay
 + Magnetic Strip Compatible
 PayPal
 All support Tokenization idea and
NFC framework.
 Is more secure. Its tokenization method means retailers
never see your actual credit or debit card number, just a
virtual account number as a one off Token.

22. Apple Pay
 Is igniting the Mobile Wallet Service
 Working now
 Has 12+ million users, supported by 90%
of banks in the US, and 70% in UK.
 US, UK (HSBC, Barclays & Santander)
(And China V.Soon)
 Also good news Android Pay!)
 Combines
 NFC with Touch ID fingerprint Tech
 Difference between Android Pay
 Uses Apple uses pre-existing Debit Cards
on PassBook (Apple Store)
(800+ Million cards)
 Only on iPhone 6(and Above with NFC)
 Andriod Pay to be on Almost all Android
(Linked to Google Play)

23. Android Pay
is Here!
 Launched in US and in UK
this July 2016!
 Benefiting from Apple Pay
Role out in US and UK
 “Tap and Pay”
 Built App in to Android M
(6+)
 I am one of the first to test
Android Pay (tap and Pay) in
UK
AND IT WORKS!
 (Pre Formal Launch)
 Auto Launch
 Virtual Credit Card

24. 4th generation
Online/
ePayment
The Big Idea!
 A new breed of Push ePayment to
coming soon to POS Merchants.
 Thanks to PSD2 coming soon.
“At checkout, the buyer can
pay automatically with their
OWN online banking service”
 UK Banks to call it in “Zapp” as Concept
 Been delayed (Launching Autumn 2016)
 Google calls it calls it ”Tap and Pay”

25. JUST DROPPED: Google Testing
Hands Free Payment(Using Voice)
 Could this be the future
of payment?
 Google Testing Voice
Payment
 Using a Combination of
Geo Location,
Bluetooth and Internet.
Not NFC!
 NOW-Google HOME
(Or Amazon Alexa) To
Take over??

26. Google Wallet Pay Via Email
Now Support USD and UK Pound
What does this mean for 1 Billion Users?

27. A revolutions coming!
In “Your App” (One Click Payment)
 Both Apple and Google to
support..
 One-Click Buy Button in
(Any IOS or Android)
APPS
 No longer one-click check
unique to Amazon !

28. Samsung Pay-Universal!
 Samsung alternative
approach
 Based on 80%+ of global
merchants are not NFC
ready
 Emulate the
Magnetic Card! +
NFC
 Uses "Magnetic Source
Transmission" technology,
or MST
 Now in Korea and
US
 Only on Samsung
S6(+)

29. Could Google(FaceBook/Apple)
become a Bank?
 Google has already invested in..
 Its own universal Google eWallet
 Linked to user own Bank Account
 Transfer Funds Via Gmail
 Issuing its own Google Master Card
 Google Buys Lending Club( IPO! )
 Americas #1 Credit P2P marketplace
 Rumours are suggesting Google (and FaceBook) could be looking
to buy a Bank (to get regulatory permissions) and link it to
 User Google Profile, integrating eWallet into Android and chrome!
 Provide P2P loans, Exchange and link to Ad Words

30. Interesting to know: Customer Loyalty

31. So What can we do
with the Technological
challenges facing us?
(A few practical suggestions)

32. What is one top thing Customers want
from our Mobile/Internet Services?
Convenience at Better Value!
 Speed, Reliability, Security all flow on..
 If you can really deliver this-
You will be successful……...

33. Example of Convenience
 HSBC introduces “Faster Balances”
 Once activated, simply swipe the App
home screen down to view the balance of
your chosen account(s)
- no need to log on
 Integrated into your Mobile Banking App
 Fast Balance can be turned on or off
quickly and easily
 Master Card (Selfie & Blink!)
 Password are such a Pain!
 I always say “Less is More.
But do less, even better!”

34. Advice create: Create Userbility Labs
 Invite our Focused Group users
to do the basic tasks on our
Product/Services
 Use your Services on Customers
 Now really observe in the Lab,
how easy it was for them!
 Compare it with the Competition
products!
 If we get this right (like Amazon
and Google) you will become a
great Bank of the future!

35. Whoever can effectively reach out to customers
with a better service will be a winner!
 Most People Focus on
 Internet Web Services
 Mobile Based Services
 But you also need Great
Back end Support to
make it work effectively!

36.  Require more backend automated services
 Use automated risk monitoring
 Need improved CRM
 Use CRM to Cross Sell services
 Learn from Amazon
 My Vision of CRM interaction online
 Example: Maybe I want an Overdraft? But can I be
bothered?
 We need improved CRM to better compete
Great Internet and Mobile services
Require great Back End support!

37. How to compete and improve our
services?
 Advice: How to Achieve it?
 We must have Customer Focused Groups in each key Department
 Have a Great Development Team
 Create User ability Labs
 Be able to identify Project Priorities, based on Limited Resources
 To get Best Customer Experience =
Implement our Ideas(from Cust Focus Groups) +
Competitors Review +User ability Labs

38. Advice: Have a clear define
Social Media Strategy
 Decide on few Social Media you want to
focus on.
 Domestic (Local Social Media)
 International(FB, Twitter, Etc)
 Need a special Team (Often part of PR)
 Need an Excellent Monitoring tool
 Few great Monitoring tools
 We use Mention.com
 Have a clear Reponses Policy!
 Use this tool to monitor
 Report on Competitors and your own
Services/Products to other Departments

39. Advice: Get involved with
FinTech Start-ups Corporate Vs Startup
culture
 (Waged/Pension) Vs
Share/Stake Holder
 Why take Risk ? Vs Must
Take a Risk
 Big Over Heads Vs Min
Over Heads
 Slow decision making VS
Quick decision making
 Be an Angle or VC into
FinTech Startups
 EG: Level39, Avatech,
Transferwise, Bahamta

40. Example: Startups
 Pardis Park, Gov Initiative, and
Avatech/Accelerator are great examples.
 ZarinPal (PayPal Copy, Easy Payment Gateway API)
 DigiKala (Most Successful valued at US $300Mil+ )
& Bamilo (Both Amazon Copies)
 Snapp and Tap30 (Uber Copies)
 I love Unique Start-ups
 Such as Bahamta.com
 In Partnership with SEP

41. Few Technology that I think will
help you to create an
Omnichannel Presence in 2017!
Open up new opportunities for you!
Proximity, AR, BlockChain, Voice

42. This is BIG: Europe's PSD2
(Payment Service Directive 2)
 Aim to open up Payments/Bank Accounts access to
Web Sites, other Banks, FinTech’s and 3r Parties
Via Standard European Wide API’s

43. This is BIG: Europe's PSD2 (Payment
Service Directive 2)
 All Banks Open up Access
Using Standard API
 Get Certified as a PISP
(Payment Initiation Service
Provider's). Such Amazon,
FinTech’s and Other Banks

44. AISP's (Account Information Service
Provider)
 Or Get Certified as a
AISP's
 Consolidate a customer’s
bank account details from
several different banks
 Great Opportunity for
FinTech’s, Banks and
Tech Providers.
 Such as GoCompear,
Consolidator FinTech’s,
Google,FB

45. Voice is the New Touch!
 Just ask your Bank what you want!
 Alexa-Amazon & Google Home

46. Mobile NG-Proximity Tech
 Mobile NG-Proximity(0m-10m) is
going to be BIG
 EG: Customized Adverts as you pass
by.
 Supermarket Offers:
Know who are, what you like and
what time it is!
 What does this mean for your Bank?
 Detect who has come in!
 Customized services in Branch!
 Branch Manager is alerted
“Mr Ali has just walked in, go and Say
“Hello Mr Ali, We have not seen you
for 6 months. By the way your recent
Overdraft has been approved, and do
you know about our new VIP services!”

47. AR in Banking is it
coming your way?
 AR your Card, Branch,
Publications
 Google to Extend Street
View to show your
Items/services in your
store.
 What could this mean
for Banks?
 See your Manager?
 Ask questions?
 See what is on offer?

48. BlockChain-The Future!
 What is BlockChain?
 Is a open ledger of all transactions distributed
around the network.
 9 of the world Biggest Bank starting to work on
using it..
 Barclays, CS, Morgan Stanley etc..
 Today Challenges
 You need to trust single source (Your Bank) to
record transactions
 BlockChain (Ultimate transparency)
 Open Transparent Ledger everywhere, recorded by
Network
 Defining who paid who at what time and for what!
 Now you can confirm where the payment
came from and if the
funds belong to them.
 Amazing Examples: Supermarket can now
check if supplier is really Organic? Or
Where did the payment come from was it
from Property sold, Stock sold, etc..

49. Your Mobile App is key to your Future!
 For Retail Banking
 Your Mobile
Platform will become
more important then
the Desktop!
 Android is gaining a
gigantic global lead
 According to
Wikipedia

50. Saman Bank: Investing Today in
Mobile Payment services of
Tomorrow

51. Final Advice- For you and your
Banks
• Invest today in the Best Mobile Solutions
• Appoint/Invest in the Best Mobile/Internet Manager and
Developers in the Business
• Be an Investor/Mentor in Accelerators/Incubators for
Startup Finance-Tech companies(R&D on
• Value-R&D and potentially very rewarding for you & Bank
• Invest in Usability Focus before public release
 Ultimately provide a Fantastic, Convenient and great
Value Banking Services for your customers.
The only path for long term success!

52. Future Banking:
Omni-Presence-Just Works
 No Smart
Phone
 No Cash
 No Cards
 Just
Talk!
 Video By
Microsoft and
EbankIT

53. My name: Farshad Nowshadi
VP-eStrategy
Saman Bank
Email: f_nowshadi@sb24.com
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