Mobil Bankacılık Üzerine !
Deniz Tuncalp‘in EFMA Magazine’de yayınlanan mobil bankacılık yazısını aynen paylaşıyorum. Pazara bakış açısı ve yorumları okumaya değer. Biraz uzun ama bu işi yapanlara farklı bir bakış açısı katacağına eminim.
Currently mobile banking is most in use among the higher socioeconomic segments. There is a large untapped potential,
however, in other segments of the population.
A major revolution is occurring in many industries with the advent of the mobile convergence. Namely, telecommunications, media, entertainment, and information technology industries are converging to form a single industry worldwide, creating devices, capabilities, and business models that are entirely
new. Such innovations are expected to change not only those converging industries, but also the way in which people live, from New York to Nairobi.
Owing to the popular adoption of mobile terminals everywhere, this time the change is more personal and fundamental, leading many industries — including the consumer-banking sector — to reinvent their core business around mobility. ”Mobile banking” is not simply another delivery channel but represents a fundamental shift in the consumer-banking paradigm.
Banks in Turkey started experimenting with mobile banking long before the convergence revolution. Today, nearly every major savings bank in Turkey offers at least some or all of the three basic mobile channels: SMS messaging, Web sites formatted specifically for mobile devices, and applications developed for certain mobile platforms, such as the i-Phone, Android, or BlackBerry. Although many of the banks have a number of novel uses of the mobile technology, four stand out with their mobile-banking implementations, segmented marketing, above-the-line communication practices, and variety of transactions they enable on the mobile channel: İşbank, Garanti, Akbank, and TEB.
İşbank is one of the most profitable consumer banks in Turkey, with US$ 2 billion in net profits in 2010. Its distinctively branded mobile, “İşCep”, has solutions in all three of the mobile channels, with specific offers for different mobile terminals. İşbank launched its first mobilebanking site in 2003 and first banking application for Java in 2007, for BlackBerry in 2008, and for i-Phones in 2009. Software-based, one-time password security is embedded in İşCep mobile-banking applications. It has also the largest available range of transactions in mobile-banking applications in Turkey.
Garanti is the most profitable consumer bank in Turkey, with US$ 2.3 billion in net profits in 2010. It started mobile banking with CepBank, an SMS-based money transfer service, in 2004. Garanti launched its mobile-banking site on WAP in 2007, and the i-Phone interface launched in September 2008. The bank branded its mobile offer as “Cep Şubesi”, meaning “pocket branch”. It has been strategically investing in mobile Internet-based banking solutions by developing advanced technological capabilities, user interface design expertise, and a segmented marketing approach. While Garanti make its mobile Internet banking site available in all major mobile terminals, it also serves mobile applications for different vertical needs. A specific i-Phone app, Garanti e-Trader, was
launched for on-line equities trading in February 2010.
Akbank is also among the most profitable consumer banks in Turkey, with 1.96 billion USD in net profits in 2010. Its mobile offer is also called “Cep Şubesi”. It is the first bank in Turkey to have started collecting consumer loan applications with SMS in 2005. Akbank launched its mobile-banking site on WAP in 2008 and its i-Phone interface in 2010. A specific i-Phone app was launched for on-line equities trading in April 2010. A mobile avatar reads the daily financial market information with text-to-speech technology on the mobile-banking site. Currently two-thirds of all transactions are performed on non-branch channels including ATMs, the Internet, and mobile, with nearly two million users.
TEB reinforced its position as a challenger bank against the leaders in several grounds of the Turkish banking environment, with 273 million Turkish liras in net profits in 2010. As a member of the global BNP Paribas network, it provides an example of best practices worldwide, winning BNP Paribas’ Innovation Awards for its mobile applications in 2008 and 2010. TEB stands out from the crowd not only with its strategic positioning and marketing of its mobile-banking offer, but also with the variety of mobile-channel alternatives available to its customers. Its distinctively branded mobile offer is “CEPTETEB”, or “TEB in your pocket”. The bank launched its mobile-banking site on WAP in 2008, including an i-Phone-specific address and interface. The number of transactions on
mobiles has increased by 60% and the financial volume by 75% over the previous year
Mobile use by profile
The rapid growth of mobile-banking customers very much depends on how it will affect the daily practice of its potential users as a technological innovation. Such technological questions have been addressed by Everett Rogers’s diffusion curve based on the diffusion of innovations. The theory says that every innovation in the marketplace is adopted by a series of customer profiles. Rogers defines these groups based on their attitude towards the innovation and says that the entirety of the addressable market holds a normal curve, with different intervals for every customer profile, namely innovators (2.5%), early adopters (13.5%), the early majority (34%), the late majority (34%), and laggards (16%). Considering disruptive innovations like mobile banking, Geoffrey Moore later advanced this theory claiming that each of these groups has significantly different needs and expectations from the innovation. Therefore the diffusion over time does not occur in a linear fashion. In order to avoid failures due to expectation differences, Moore suggests that companies should focus on their current customer profiles to reposition themselves and use each diffused group as a base for marketing to the next.
Based on these theories and observations at different banks, it has been estimated that the Turkish consumer-banking market today hasaround 300,000 mobile-banking customers with different levels of activity, showing approximately 5% general penetration. We may suggest that the mobile-banking innovation has just passed the first step and is now penetrating early adopters in Turkey; therefore, banks should focus both on the expectations of early adopters and novel uses that may extend the addressable market.
The future looks even more promising for mobile banking in Turkey. As of third-quarter 2010, there were 8 million broadband Internet subscribers, 1.2 million of whom are mobile users. Mobile-phone diffusion in the Turkish population remains stable at around 85-86% with 61.9 million subscribers. Among those subscribers, 16.6 millon are 3G mobile subscribers with broadband-access capability, whereas only 1.2 million 3G subscribers had used mobile broadband in third-quarter 2010. Stakes are higher, as the 3G customer base grows and more mobile users start using their mobile-Internet capabilities such as mobile
banking. The number of mobile-Internet users has increased by 39.2% over the previous quarter and 430% vis-à-vis the same quarter a year earlier. With these diffusion rates, transactional mobile banking is expected to reach millions soon in Turkey.
A significant level of experience has been accumulated among banks and technology companies in Turkey that may be considered valuable for consumer banks elsewhere. For example, Istanbul-based mobile application technology company Pozitron — having İşbank, BankAsya, Denizbank, Finansbank, Fortis, ING Bank, KuveytTurk, Şekerbank, and Vakifbank in its client list for mobile-banking and security applications – recently announced that it has agreed to provide a mobile-banking application to Doha Bank in Qatar, and its İşbank solution has been featured as a best practice for BlackBerry by the Research-in-Motion
company. Such news may be an important step for the short history of mobile banking in Turkey and may also symbolise how Turkish technology
companies and banks are potentially becoming technology providers and global benchmarks for mobile banking.
Expanding the reach
For now, mobile banking typically addresses users in the higher socioeconomic segments, as indeed do smartphones, mobile pads, and widescreen devices. It is believed that mobile-banking customers predominantly hold a university degree and are mostly younger than the general population. Nevertheless, there is a large untapped potential for mobile banking in other segments of the population. Mobile banking may also be used to bank the unbanked. On the one hand, I am expecting consumer banks to develop their mobile offers into low-risk, high-performance integrated mobile solutions, requiring a higher engagement with downloaded applications, specialised transactions, and repeated usage, reaching a larger portion of their customer base. In this way, they may outperform the competition and start interacting and transacting with their existing consumers on line directly from their pockets. On the other hand, if a consumer bank offers different solutions to needs and expectations of different customer profiles successfully, it may redefine the consumer-banking paradigm fundamentally
and start reaching even to previously unprofitable and unreachable segments of the market with its advanced mobile capabilities, thus significantly changing people’s lives and redefining consumer banking fundamentally.