1. Next Generation Mobile
Banking in Emerging Markets
Ian Whitehead
Director Retail and Business Banking, Commonwealth Bank Indonesia
Bali, October 8th, 2012

2. In the Past,
We Had to be
Physically
Present to
Obtain a
Product/
Service

3. And
NOW…

4. What has triggered
the CHANGE in the
last10 years?

5. Content Page
 The Changing Demography & Population
 The Shift in Consumers’ Behaviors
 The Transformation in Banking
 Mobile Banking Capability
 The Way Consumers will Bank
 The Way Banks will Integrate Channels & Growth

6. The Growing Young
Age, Middle Class
Population

7. “Already, the working age (ages 15-64) population in
developing markets is more than three times larger
than that in developed markets, and is expected to surge 20% to
more than four billion by the year 2025.”
United Nation
Older
78% <45 years old Younger

8. “By 2030, Asia will host 64% of the global middle class and
account for over 40% of global middle-class consumption
with Indonesia middle class market forecasted to triple to
150 million by 2015.”

9. Content Page
 The Changing Demography & Population
 The Shift in Consumers’ Behaviors
 The Transformation in Banking
 Mobile Banking Capability
 The Way Consumers will Bank
 The Way Banks will Integrate Channels & Growth

10. The Shift in
Consumers’
Behaviors

11. Emerging Market lead the fastest growth in Social
Network among the world
# 4 in the World for Facebook #1 in the World for the Number of
Users.. Posted Tweets...
Indonesia is now at 43.06M, No. of Twitter users in Indonesia are
growing over 21,000% 19.5M
The 5th in the world for Twitter
accounts

12. Mobile Phone Subscription as per Q1, 2012
Indonesia has the
largest mobile
phone market in
Asia, after China
and India with 260
million subscribers
(est. 2012)…..with over
107% penetration
rate

13. In Indonesia, ownership of internet capable mobile
phone more than double the PC or Laptop

14. Indonesia has the largest Smartphone market in
South-East Asia with a 62% penetration rate

15. Smartphone users are active users of Shopping,
Productivity and Banking & Finance applications…

16. Content Page
 The Changing Demography & Population
 The Shift in Consumers’ Behaviors
 The Transformation in Banking
 Mobile Banking Capability
 The Way Consumers will Bank
 The Way Banks will Integrate Channels & Growth

17. The Transformation
in Banking…

18. Banking “channels” have evolved significantly over the past 10
years to accommodate changing customers’ needs
Face to Face interaction Low
High
Bank Internet Mobile
ATM Call Center
Branches Banking Banking
Interconnectability & High
Low Convenience

19. Banking “channels” have evolved…….
2000  2004; Branch, ATMs & the emergence of call centers
Branch ATM Call Center Internet Banking Mobile Banking
• Inquiry • Live 24 hours
• Inquiry
• Cash Deposit • Inquiry
• Cash
• Cash Withdrawal • Complaint
Withdrawal
2000-2004
•
•
•
Transfer
Time Deposit
Mutual Funds
• Transfer
• Credit cards
handling
• Basic
transactions
• Inquiry
• Transfer thru SKN/RTGS 
payment owned
• Bancassurance • Automated
by the bank
• Bill Payment IVR response
• Time Deposit
• Mutual Funds
• Bill Payment
Shifting to Electronic • Standing Order • Inquiry
2005-2009 • Cash Deposit
receipt • Cheque book order • Internal Transfer
• Mobile ATM
• Bill payment
• Online statement
2010-2012 Weekend Banking • Mobile Cash • Real time transfer
• Transfer thru SWIFT
• Real time transfer • Time Deposit
• Mutual Funds
• Cheque deposit • ATM & Branch locator
Bank's location at • Paperless ATM
2013-2015 customer convenience receipt (send to • MFD Redemption • MFD Redemption
i.e mall customer's • Online form app • P2P payment
email) • P2P payment • Exchange Stock trade
• Exchange Stock trade • Cheque deposit
• Cheque deposit • Online chat with bank
• Online chat with bank reps. reps.

20. Banking “channels” have evolved significantly…..
2005  2009: + call centre capability & Internet Banking…
Branch ATM Call Center Internet Banking Mobile Banking
• Inquiry
• Inquiry • Live 24 hours
• Cash Deposit
• Cash • Inquiry
• Cash Withdrawal

Withdrawal • Complaint • Inquiry
• Transfer
2000-2004 • Transfer • Transfer thru SKN/RTGS
• Time Deposit handling
• Credit cards • Basic
• Mutual Funds
payment owned
• Bancassurance transactions
by the bank • Automated
• Bill Payment
IVR response • Time Deposit
• Mutual Funds
• Bill Payment • Standing Order • Inquiry
Shifting to Electronic
2005-2009 • Cash Deposit • Cheque book order • Internal Transfer
receipt
• Mobile ATM • Bill payment
• Online statement
2010-2012 Weekend Banking • Mobile Cash • Real time transfer
• Transfer thru SWIFT
• Real time transfer • Time Deposit
• Mutual Funds
• Cheque deposit • ATM & Branch locator
Bank's location at • Paperless ATM
2013-2015 customer convenience receipt (send to • MFD Redemption • MFD Redemption
i.e mall customer's • Online form app • P2P payment
email) • P2P payment • Exchange Stock trade
• Exchange Stock trade • Cheque deposit
• Cheque deposit • Online chat with bank
• Online chat with bank reps. reps.

21. Banking “channels” have evolved significantly….
2010  today…channel interoperability & mobile…
Branch ATM Call Center Internet Banking Mobile Banking
• Inquiry
• Inquiry
• Cash Deposit
• Cash
• Cash Withdrawal
Withdrawal
2000-2004
•
•
•
Transfer
Time Deposit
Mutual Funds
• Transfer
• Credit cards
• Inquiry
• Transfer thru SKN/RTGS 
payment owned
• Bancassurance
by the bank
• Bill Payment
• Time Deposit
• Live 24 hours • Mutual Funds
• Bill Payment
Shifting to Electronic • Inquiry • Standing Order • Inquiry
2005-2009 • Cash Deposit
receipt • Complaint • Cheque book order • Internal Transfer
• Mobile ATM
handling • Bill payment
• Basic • Online statement
transactions
• Real time transfer
• Automated
• Transfer thru SWIFT
IVR response
2010-2012 Weekend Banking • Mobile Cash • Real time transfer • Time Deposit
• Mutual Funds
• ATM & Branch locator
• MFD Redemption • MFD Redemption
• Cheque deposit
• Online form app • P2P payment
Bank's location at • Paperless ATM
• P2P payment • Exchange Stock trade
2013-2015 customer convenience receipt (send to
• Exchange Stock trade • Cheque deposit
i.e mall customer's
• Cheque deposit • Online chat with bank
email)
• Online chat with bank reps. reps.

22. Banking “channels”; 2013  convergence, interoperability,
social channels, real time and channel preferences…
Branch ATM Call Center Internet Banking Mobile Banking
• Inquiry
• Inquiry
• Cash Deposit
• Cash
• Cash Withdrawal
Withdrawal
2000-2004
•
•
•
Transfer
Time Deposit
Mutual Funds
• Transfer
• Credit cards
• Inquiry
• Transfer thru SKN/RTGS 
payment owned
• Bancassurance
by the bank
• Bill Payment
• Time Deposit
• Live 24 hours • Mutual Funds
• Bill Payment
Shifting to Electronic • Inquiry • Standing Order • Inquiry
2005-2009 • Cash Deposit
receipt • Complaint • Cheque book order • Internal Transfer
• Mobile ATM
handling • Bill payment
• Basic • Online statement
2010-2012 Weekend Banking • Mobile Cash transactions • Real time transfer
• Automated • Transfer thru SWIFT
IVR response • Real time transfer • Time Deposit
• Mutual Funds
• ATM & Branch locator
• Cheque deposit
Bank's location at • Paperless ATM • MFD Redemption
• MFD Redemption
2013-2015 customer convenience receipt (send to • Online form app
• P2P payment
i.e mall customer's • P2P payment
• Exchange Stock trade
email) • Exchange Stock trade
• Cheque deposit
• Cheque deposit
• Online chat with bank
• Online chat with bank
reps.
reps.

23. Content Page
 The Changing Demography & Population
 The Shift in Consumers’ Behaviors
 The Transformation in Banking
Mobile Banking Capability
 The Way Consumers will Bank
 The Way Banks will Integrate Channels & Growth

24. Mobile Banking
Capability

25. Mobile Banking in
Indonesia

26. The number of Mobile Banking users in Indonesia is
estimated at over 8 million...
VALUE SERVICES
• Bill Payment
BASIC SERVICES
• Purchasing
• Balance Info
• ATM & Branch locator
• Account Movement
• E-Commerce Payment
• Internal Transfer
• Foreign Exchange & Interest Rate info
• Interbank Transfer
• Transfer to e-wallet/e-saving
• Mobile Cash.
www.klikbca.com
BCA’s key points:
Mandiri’s key points: • One platform offers
• Well established flexibility options to
• Very easy user use either m-BCA (via
interface SMS) or KlikBCA (via
GPRS etc)

27. With significant capability and functionality growth,
and upgrades being released....
Permata’s key points:
• Mobile Cash – similar
www.commbank.co.id
like Cash withdrawal
without ATM card on Commonwealth
any Bank Permata Bank’s key points:
ATM. • Interbank Transfer
(domestic &
international using
www.cimbniaga.com foreign currencies)
• Mutual Funds
Niaga’s key points: Purchase & inquiry,
• Transactions using • Time Deposit
OTP (One Time Placement & inquiry.
Password) sent
through SMS ~in progress

28. Mobile Banking
Overseas

29. Mobile Banking Overseas Today
www.danskebank.com
www.usaa.com
• Instant mobile
payments,
• Stop payment on a
• Currency exchange
check
• Stock trade
• Use money manager
• Live account status
to track spending
info
• Add money to
• Quick access to
prepaid cards
contact info
• Make cash advance
• GPS –and map –
deposits
enabled ATM &
branch search
• Intuitive design..

30. Mobile Banking Overseas Today
www.maybank.com
home.ingdirect.com
• Personalization
• P2P Payment features
• Investing in stock
• Connection to bank’
market
social media
• Enables customer to
platforms to
flip their mobile to
customers
switch the application
to social media such • Smart and fun add-
as Twitter/Facebook ons like Instant
Rewards

31. Mobile Banking Overseas Today
www.commbank.com.au
• Kaching: Bump
payment and peer to
peer payment
• NetBank – enables
customers to take
care their day to day
banking
• CommSec – enables
customer to buy &
sell stocks on the go
and instant access to
market updates

32. Use of Mobile Banking in Indonesia
Today…

33. Content Page
 The Changing Demography & Population
 The Shift in Consumers’ Behaviors
 The Transformation in Banking
 Mobile Banking Capability
 The Way Consumers will Bank
 The Way Banks will Integrate Channels & Growth

34. How will it
Change the Way
Consumers
Bank ?

35. Customer expectation of Mobile Banking is
becoming ‘value-centric’
Configuration & Real Time
personalization capability
Interoperability of existing &
Security – consumer
new channels, e.g. and new
and industry
capability (NFC, e-Wallets)
and client (& data) driven
communications.
Anytime,
Anywhere
Integrated and banking
seamless…

36. Content Page
 The Changing Demography & Population
 The Shift in Consumers’ Behaviors
 The Transformation in Banking
 Mobile Banking Capability
 The Way Consumers will Bank
 The Way Banks will Integrate Channels & Growth

37. Integrating the
Channel and
Growth…

38. Integrating fast growing channels, a customer centric
strategy & consumer confidence …….how?
Balancing:
1. Ease of access, privacy and security…
2. Customer demands and bandwidth (technical)..
3. Innovation  explosive growth and the need for
regulation…
4. Industry reputation and consumer confidence
5. Requires collaborative engagement; Industry +
Regulatory + Consumer (all working in sync).

39. Ian Whitehead
Director of Retail and Business Banking
Commonwealth Bank Indonesia