Chicago Payment Symposium 2014

Transcription

1 Chicago Payment Symposium 2014 Federal Reserve Bank of Chicago Chicago, USA 25 to 26 September 2014 Fast and Secure Transfers - a Customer Case Study Of how OCBC bank has leveraged Fast and Secure Transfers (FAST) in Singapore for product innovation, the business case for FAST and how it has opened up new revenue and customer service opportunities for the bank. Ricky Lim Head, Regional Cash Management Global Transaction Banking, OCBC Bank Former Managing Director BCSIS

2 Singapore Demographics

3 Payment Innovation Singapore Retail Payments Landscape Mobile payments EFTPOS Magnetic Farecard Shared CashCard ATM Internet Banking Kiosk payments EZ-Link Card Time Stage 1 Establishment of nationwide e- payment infrastructure Stage 2 Launch of new, innovative e-payment solutions Stage 3 What s Next?

4 Low Value Payments before FAST Bank Channels ACH Result Fund transfers Bill payments Batch-oriented Up to T+2 clearing Proprietary message format Lack of payment information in statements High cost of manual handling of transactions

5 G3 Overview SMS Mobile Web Smart Client IVR PC/Browser ATM Future Banks multichannel access Banks Customers (Individuals, Merchants, Corporations, etc) Initial Phase Bank s Innovations, FAST e.g.: P2P Payment New File Format Instant Bill Payment EBPP/EIPP Bulk Payment edda Ad-hoc Enhanced Real-Time File Payment Format & Transfer STP Electronic DDA Banks G3 Bulk Payment FAST edda Cross Border MAS MEPS+ Next Phase Cross Border

6 Real Time Solution FAST

7 FAST in action ABS Fast Video

8 Critical Success Factors Industry s participation and buy-in Open standards and infrastructure Early marketing to the general public Sufficient time given for acceptance Legal, risk management and regulatory framework Robust testing and operation support Payment innovation is key

9 OCBC Case Study

10 Singapore s longest established local bank 2 nd largest financial services group in Southeast Asia by assets Strongest Bank In The World in 2011 & nd spot in 2013 ranking (Ranked by Bloomberg Markets)

11 International Network 1981 United States 1969 United Kingdom Significant International network of more than 530 branches spanning 18 countries Branch network in Southeast Asia 56 branches in Singapore 31 full-licensed banking branches & 10 Islamic banking branches in Malaysia More than 330 branches and offices in Indonesia Branch network in Greater China 88 branches in Hong Kong, Macau, China and Taiwan 1991 Korea 1973 Japan China Taiwan Hong Kong Myanmar Vietnam Thailand Malaysia Brunei 1912 Singapore 1990 Indonesia 1986 Australia

12 Product Innovations Most Innovative in Customer Experience 2012 Branch Innovation of the Year Gold (FRANK by OCBC)

13 OCBC Pay Anyone TM Introduction: A micro-payment mobile application which allows OCBC customers to transfer money to recipient(s) up to a cumulative limit of S$100 per day The collection details will be sent to the recipient s address, Singapore registered mobile number, or Facebook wall (that is only visible to him/her) Channels: Available on iphone and Android Collection can be made via responsive web on mobile & desktop, other than Pay Anyone mobile application. Benefits: No need for recipient s account number Require recipient s address or mobile number, or if the recipient is a Facebook friend No hassle of using transaction signing token Recipient can deposit the money to any of the 14 FAST participating bank accounts Money is credited to recipient s account almost instantaneously

14 Easy to use with friendly interface

15 OCBC Pay Anyone TM VIDEOS (1) Introducing OCBC Pay Anyone (2) OCBC Pay Anyone - Paid Me Part 1 (3) OCBC Pay Anyone - Paid Me Part 2

16 Interest rate per year 360 Account 360 Account is a deposit account that rewards customers with bonus interest when they perform certain transactions i.e. bill payments, salary credit and credit card spend. Leverage on FAST s payment convenience and instant fund transfers capabilities Wake up your money with up to 3.05% p.a.

17 360 Account Attract new and deepen existing operating bank relationships and behaviours through an over-arching primary bank product proposition Over 18,000 new accounts were opened within the first month of launch. Of which 70% of customers were PMETs and 30% are young professionals aged 23 to 29 years old. Substantial inflows via FAST transactions to 360 Accounts since launch OCBC s extensive network of 56 branches, large network of 1,200 ATMs island-wide, award-winning Online Banking platforms and FAST (instant interbank transfers) allow customers to fund their newly opened accounts in a faster and efficient manner.

18 Key Success Factors to Innovation Outside-In approach, coz true innovation begins with the customer Change management across value chain and leadership Innovate through customers lenses, which will involve challenging and revamping existing processes, systems, delivery and culture Collaboration across all products, channels and support functions

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