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RFi GROUP AUGUST TEN SELECTED STATISTICS FROM DAILY STATS ON RFi GROUP WEBSITE (www.rďŹ group.com)

UK

CANADA

40% of UK current

1 in 10

account holders only hold a current accou with their main bank

Consumers in Canada have used some form of biometric identification to access their bank's internet/mobile banking

US

47%

of US merchants accept contactless card payments

MEXICO

29% of of consumers

in Mexico consider a mobile banking app as their most preferred channel for day-to-day banking activities

EGYPT

2 in 3 Egyptian

consumers find it very important that their bank has an extensive branch network


STATISTICS

t y unt k

y

e

FRANCE

2 in 5 consumers in

France intend to take out a new banking product in the next 12 months

#RFiGroupDailyStat

CHINA

37% of consumers in China

have used fingerprint biometric technology to access their banks' internet/mobile banking

MALAYSIA

42% of consumers in

Malaysia cite owning their own home as their most important financial goal

TAIWAN

18% of consumers in

Taiwan have banked with their main bank for less than 3 years

AUSTRALIA

1 in 3 Australian card

accepting merchants would most prefer contactless card payments to go through the eftpos network


CONTENTS AUGUST 2018

06 RFi GROUP INSIGHT

10

SPECIAL FEATURE What business travellers want

Who’s next to emerge in digital payments in South East Asia?

14

20

ECONOMIC & REGULATORY

RETAIL BANKING

Encouraging offshore expansions for Korean banks

Japanese Banks are shifting away from costly ATMs

22

28

TECHNOLOGY

PRIORITY & PRIVATE BANKING

Opportunities to accelerate financial inclusion in Vietnam

Did a colleague forward you The Asian Banking Monitor? Subscribe to receive YOUR FREE monthly copy by clicking here

Morgan Stanley eyeing China’s entrepreneurs


RFi GROUP INSIGHT

WHO’S NEXT TO EMERGE IN DIGITAL PAYMENTS IN SOUTH EAST ASIA? WORDS: RUSSELL QUAH

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RFi GROUP INSIGHT

Common factors between India and China were that both countries initially suffered from a lack of debit/ credit cards, a lack of traditional point-of-sale terminals and a considerable amount of counterfeit cash in circulation.

I

ndia and China are ahead of the rest of the world in the mobile wallets and digital payments race. These two countries have leapfrogged over everyone else because of government support and mandate that drive digital payments. What also helped to some extent was that the financial infrastructure was not as matured as compared to developed countries.

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SPECIAL FEATURE

WHAT BUSINESS TRAVELLERS WANT

I

n today’s globalised business world, corporate travel is the norm. It’s not surprising therefore that travel and entertainment (T&E) is a big part of a corporate’s business. However, a recent whitepaper from Mastercard and RFi Group has revealed the propensity of business travellers to use their personal cards over their corporate cards. The reasons for this preference were the convenience of buying personal and business items in a single transaction, card acceptance constraints and taking advantage of earning rewards on their personal cards. The desire to redeem points and earn mileage is the reason that some corporate travellers will start using their own card.

The high proportion of corporate cardholders using personal cards for T&E expenses highlights that current propositions in the market do not completely meet the needs of corporate travellers. The high proportion of corporate cardholders using personal cards for T&E expenses highlights that current propositions in the market do not completely meet the needs of corporate travellers. With T&E spend increasing for corporations, providing a corporate card solution that solves key customer pain-points around travel expenses is critical to avoid leakage to personal cards, again, underscoring the lack of appealing or suitable corporate card propositions in the market. Another important finding drawn from the whitepaper was the importance that travellers placed on access to health and accident insurance. These were some of the most sought-after features of a corporate card. These challenges highlight the need for a corporate solution that offers a clear value proposition to drive usage and corporate preference, and one that provides protection and peace of mind to employees. The whitepaper deep dives into a solution that meets the needs of today’s corporate traveller the Mastercard World Corporate Card™.

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Meeting the needs of today’s corporate traveller The Mastercard World Corporate Card provides enhanced benefits for travellers to minimize stress and ensure peace of mind. Unique benefits such as giving travellers access to over 1000 lounges around the world, access to a dedicated airport concierge service post-flight, as well as a comprehensive suite of insurance coverage for travel accident and medical benefits. Providing travellers with these travel related benefits reduces the incentive to switch spending to a personal card to earn personal rewards program benefits.

Unique benefits such as giving travellers access to over 1000 lounges around the world, access to a dedicated airport concierge service post-flight, as well as a comprehensive suite of insurance coverage for travel accident and medical benefits Maintaining control of expenses is another pain point for both travellers and businesses. The corporate card solution cuts expense-processing costs through effective backoffice expense management. The card also offers greater visibility around expense management, making it easier for businesses to get a better understanding into the spending habits of their corporate travellers. Increased usage of cards for T&E demands more robust card management solutions, with access to the data and controls companies need to make more informed decisions. Mastercard Smart Data offers a complete suite of features for a one-stop solution for Corporate card customers ensuring controls, robust data and reporting as well as effectively manage T&E expense reporting and approval workflows. It is a single, scalable, and highly configurable global platform with proven market leadership.


SPECIAL FEATURE

Corporate card solutions can result in a 37% reduction in cost processing time per report compared with paperbased methods Another key finding from the whitepaper was that corporate card solutions and can result in a 37% reduction in cost processing time per report compared with paper-based methods. This approach also means improved analytics around T&E spend allowing businesses to better negotiate discounts from suppliers leading to cost reductions. Developed with the needs of corporate travellers in mind, the Mastercard World Corporate Card is designed as the go-to card for organizations with significant T&E expenditure. Delivering powerful value propositions for both businesses and individuals alike.

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aDiscover how cash and ATMs are still an important part of the growing digital world

aLearn of recent industry regional and global trends aProvide an update on bitcoin aCyber Security – what you need to know Gold Sponsors:

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Product Showcases

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www.atmiaconferences.com TABM - RFi MEDIA 011


GLOBAL DIGITAL BANKER PODCAST

Global Digital Banker Podcast EPISODE 28

The current and future drivers of obtaining main bank relationship 25 MIN Guests: Michael Jordaan, CEO, Bank Zero & Gerald Ferguson, Managing Director Asia Pacific, RFi Group

RFi Group research shows that only 40% of consumers globally will ever switch their main bank. In today’s episode we take a look into the importance of transactional relationships on acquiring main bank status along with the current and future drivers of main bank relationships. Gerald Ferguson shares insights on the shift towards transactional banking relationships, opportunities from life stage switching and the current and future drivers of main bank relationships.

Michael Jordaan explains the catalyst behind launching Bank Zero, the digital banking scene in South Africa and how they differentiate themselves from other competition in the market START LISTENING HERE

EPISODE 27

Ensuring consumer comfortability in an open banking environment 13 MIN Guests: Leon Muis, Chief Operating Officer, Yolt

Research from RFi Group’s latest Global Digital Banking Study shows that over 4 in 5 consumers globally agree that the privacy of their financial data is more important than access to better products and services. With this in mind, it’s important for banks and financial services companies to build trust amongst consumers and create products that have a clear and fairminded value exchange to incentivise consumers to share their personal data. We sat down with Leon Muis, Chief Operating Officer at Yolt who shared his opinions on the drivers behind changes in financial services, the customer needs that are not yet being addressed by banks or fintechs, how to build trust amongst consumers and three exciting new updates that we can expect to see from Yolt over the next 12 months. 12 TABM - RFi MEDIA

START LISTENING HERE


GLOBAL DIGITAL BANKER PODCAST

EPISODE 26

Growth continues in Asia’s next FinTech hub 15 MIN Guests: Thorsten Terweiden, Deputy Head of FinTech, InvestHK

As at 2018, Hong Kong’s FinTech scene is absolutely thriving. This continuing development is due to a number of factors, including: government support towards players within the ecosystem, increasing investment within Hong Kong FinTech which has now more than doubled over the past 12 months and consumer awareness continuing to rise with over 1 in 4 Hong Kong consumers aware of FinTech providers within the country, increasing to 1 in 2 of consumers when prompted. We sat down with Thorsten Terweiden, Deputy Head of FinTech at InvestHK who shares the current state of the market, the ways in which FinTech is evolving within Hong Kong, segments that are of growing interest to investors along with some great case studies from the region. START LISTENING HERE

EPISODE 25

Bricks to clicks – addressing evolving customer needs in Canada 22 MIN Guests: Rania Llewellyn, Executive Vice President, Global Business Payments, Scotiabank and Andrew Irvine, Head of Customer Solutions, Canadian Personal & Business Banking at BMO Financial Group

We speak to some of Canada’s biggest banks to see how they are addressing the evolving needs of Canadian consumers, their channel preferences and their perspective on potential regulatory changes in the market. Rania Llewellyn shares the market segment that they will be going after, how they keep across the changing needs of different consumer segments and the changes in Canadian Payments Infrastructure. Andrew Irvine discusses the various technologies impacting the customer experience, how they educate customers on new innovation within the business and his perspective on the potential regulatory changes in Canada. START LISTENING HERE

NEVER MISS AN EPISODE! SUBSCRIBE & LISTEN TO THE PODCAST ON ANY OF THE BELOW PLATFORMS: iTunes

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globaldigitalbanker.com

For up to the minute email notifiications, please subscribe here If you are interested in being a part of the show or would like to let us know your feedback, contact us at: gdbpodcast@rfigroup.com

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VIETNAM’S RETAIL BANKING MARKET PENETRATION 46% 41% 33% 29% 25% 17% 14%

13%

11%

2%

Vietcombank

AgribankB

IDVV

ietinbank

ACBD

ongA Bank

TechcombankS

acombank

VP Bank

Shinhan Bank

Source: RFi Group – Vietnam Retail Banking Council (H1 2018)

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ECONOMIC & REGULATORY

TOP NON-CASH PAYMENT METHODS USED IN MALAYSIA OVER THE LAST 12MONTHS H1 2017

H2 2017

100% 80% 67%

60%

62% 55%

59% 43%

40%

47% 40%

43%

20% 0%

Debit Card

Mobile wallet/ digital payment

Bank transfer/ online transfer

Credit Card

RFi Group – Malaysia Priority and Retail Banking Council (H2 2017)

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ECONOMIC & REGULATORY

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RETAIL BANKING

Retail Banking Meeting the needs of today’s corporate traveller

A

recent whitepaper by Mastercard and RFi Group has revealed that approximately two out of every three corporate travellers still prefer to use their personal credit cards for many of their travel and entertainment (T&E) expenses over their corporate cards1.

Approximately two out of every three corporate travellers still prefer to use their personal credit cards for many of their travel and entertainment (T&E) expenses over their corporate cards1 The top three reasons driving this behavior are: the convenience of combining personal and business expenses in one transaction; the ability to earn better rewards on personal cards, and access to better services on personal cards. Corporate card spend accounts for the vast majority of travel and entertainment spend in Asia Pacific. Yet the continuing leakage of business travel spend onto personal cards poses challenges for finance, travel and procurement teams. Mastercard is tackling this challenge by introducing the Mastercard World Corporate Card™, the go-to card for organizations with significant T&E expenditure. The Mastercard World Corporate Card delivers a powerful value proposition for both businesses and individuals, improving policy compliance, driving process efficiencies, while offering cardholders a streamlined travel experience. The Mastercard World Corporate Card provides enhanced benefits for travellers to minimize stress and ensure peace of mind. Mastercard Loungekey gives today’s travellers access to over 1000 lounges around the world by simply presenting their Mastercard World Corporate Card at participating lounges. Post-flight, they can be welcomed at the airport by a dedicated

agent through the Mastercard Airport Concierge who will escort them to their limousine, pre-arranged through the Mastercard Destination Limo service. Providing travellers with these travel related benefits reduces the incentive to switch spending to a personal card to earn personal rewards program benefits. Maintaining control of expenses is another pain point for both travellers and businesses. The corporate card solution cuts expense-processing costs through effective back-office expense management. Another benefit of the card is greater visibility around expense management, making it easier for businesses to get a better understanding into the spending habits of their corporate travellers. These insights can result in wider benefits such as the ability for businesses to negotiate discounts with suppliers getting a better deal for both business and corporate staff.

Lost or stolen cards are replaced within 48 hours with access to an emergency cash advance within two hours Enabling businesses to address the duty of care for their employees is also crucial. The Mastercard World Corporate Card offers a comprehensive suite of insurance coverage for travel accident and medical benefits. Furthermore, lost or stolen cards are replaced within 48 hours with access to an emergency cash advance within two hours. Barriers to card acceptance are also easily overcome, with Mastercard’s cards being accepted at over 40 million global locations. As travel expenses continue to grow for corporates with business becoming increasingly global, access to a compelling corporate card solution is critical in helping businesses better manage their T&E spend. By developing a card with the needs of businesses and their corporate travellers in mind, the Mastercard World Corporate Card addresses the key pain points in travel expense management and delivers enhanced benefits to business travellers.

Source: Mastercard proprietary research 2017’

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RETAIL BANKING

World Bank figures for 2018 show that only 34.5% of Filipinos at least 15 years of age have a bank account which has improved by only 3.2% over the last 4 years. While the growth hasn’t been spectacular, the nation has seen faster growth in digital payments and online commerce which will help digitizing policies to have more of an impact on reducing the number of unbanked. Digital payment usage among

the banked population has steadily increased to 70% of the population according to RFi Group data. With Bangko Sentral ng PIlipinas (BSP) pushing for the national retail payment system (NRPS), a digital finance program, as well as the government pushing legislation for biometric national ID bill, it will be interesting to see how successful digital will be in connecting the nation with finance.

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Source: 17H2 Singapore Priority and Retail Banking Council, RFi Group

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% USE MOBILE DEVICE AT LEAST ONCE PER WEEK TO CONDUCT DAY TO DAY BANKING ACTIVITIES WITH YOUR MAIN BANK Retail Banking Customers

25% 25%

24%

H2 2016

H1 2017

31%

19% 14%

H2 2015

H1 2016

H2 2017

H1 2018

Source: RFi Group Vietnam Priority & Retail Banking Council

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Source: RFi Group Malaysia Priority & Retail Banking Council H2 2017

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The Asian Banking Monitor - August 2018 Edition  

An RFi Group publication

The Asian Banking Monitor - August 2018 Edition  

An RFi Group publication