Group 14 – “Banking innovation, services and new technology: how are modern banks attracting new customers”

« Banking Is a Rapidly Changing Industry

Digital-only bank Ally launched in the U.S. in 2008 and at the time, it was one of the first of its kind. But multiple new players have entered the scene in the last few years. These include Monzo, Tandem, N26, and Fidor in Europe, along with Digibank in India and B1NK in Kazakhstan. » (business insider)

How are banks attracting new customers? By keeping them away. Banks are finding new growth opportunities through online and mobile channels, proving once more that consumers are increasingly attracted to the convenience and speed of mobile and online solutions. Understanding consumer trends will help banks understand how to position themselves as we move into an increasingly mobile reality.(

Let’s talk about the bank innovations and services:

Application and Smartphone payment

Today, most of the banks are adapting themselves by developing applications that allow their customers to manage their banking accounts, achieve bank transfer, block their credit card if it was stolen or lost, find all the information about their bank or discuss directly with an adviser.

Moreover, banks are developing system to pay directly with the smartphone, without using a real credit card. Recently, it talks about the cardless ATMs as driven by millennial demand for all things quick and convenient. While giving people a mobile-friendly way to use ATMs might not directly pull them out of the branch, there are features included that certainly will. For example, The Diebold cardless ATM app allows users to transfer funds to other individuals. The money can then be picked up at an ATM by means of a one-time message PIN. At no point does either party need to interact with a teller to transfer the money.


Social media following

Banks have created a function to be careful of their images on social media (like Facebook, Twitter and Instagram…) by answering to their customer’s needs 24/7. Thanks to that new function, banks seem to be more attentive to their customers but also closer to their needs. Consequently, it reinforced their images.

Contactless payment

Nowadays, new credit cards are contactless and for customers it is a time gain. people can regulate the amount they can pay contactless.

The Banking of Things

Some banks are created a new service that corresponds to every customers and mostly the children. In fact, with an online application the parents could easily manage their children’s money and also for the children to learn the value of the money.

Most banks now allow customers to deposit checks through their mobile app by taking a picture of the check. If a check comes to me in the mail, and I can take a picture right there, or drive to the nearest bank, I don’t have to think hard about which option makes more sense.


Young people are always connected by their smartphones, computer or even watches. By this way, these innovations can really attack people.

Clever Kash, the new piggy bank.


(2016, February 24). The top ten trends in banking innovation. Retrieved January 30, 2017, from

(2016, May 26). How are banks attracting new customers? By keeping them away. Retrieved January 30, 2017, from

THE FUTURE OF BANKING: Growth of innovative banking fintech services. (n.d.). Retrieved January 30, 2017, from

GROUP 19 – “Banking innovation, services and new technology: how are modern banks attracting new customers?”

Banks are, in short, the opposite of a tech startup. So a tech startup wanting to take on the banks on their own turf has its work cut out for it.

But that’s the goal of London-based firm Monzo (née Mondo: the company had to change its name this year after a trademark challenge). The company doesn’t just want to become a new bank, though. It wants to become the Facebook of banking, with a billion users worldwide, bypassing much of the traditional banking infrastructure in the process to become something the world has never seen.

That’s a long way away, though. In the present, Monzo is operating in a limited beta test, with 50,000 cardholders using the service through pre-paid debit cards. It just got a restricted banking licence, putting it on the path to opening up a full current account service in early 2017 (as well as granting it deposit protection, faster payments and direct debits).

Building a bank from the ground up

It’s not just a result of founder Tom Blomfield’s goal “to get to 1 billion customers”, and subsequent plans for international expansion before the company has even fully launched in the UK (Monzo is “testing US dollar and Euro cards right now”, he says). It’s also because, where its competitors have largely been positioning themselves as innovative banks, focusing on the cost savings afforded without the overheads of branches, and highlighting their competitive deals, Monzo has focused more on the wider possibilities offered by building a bank from the ground up in the 21st century.

Blomfield’s ambition can get ahead of him at times, leaving it hard to disentangle possibilities from plans, and plans from actually existing products. So here’s what Monzo is today: a pre-paid MasterCard, issued by Wirecard Solutions, with deep hooks into a companion app which offers a real-time log of your spending and control over how the card is used.

The real-time log is impressive for anyone who’s had to wait days for online banking to update to find out how much they spent after a boozy night out, and Blomfield proudly points out that it would be impossible for a “legacy bank” to do the same. “If you slap this app on top of NatWest’s systems, the phone wouldn’t buzz when you make the transaction. It would buzz three days later, when the bank finally posted to its ledger.”

Other pre-paid accounts are more real-time, and Blomfield concedes that American Express also offers that speed of response. But, he says, “the amount of information that we ingest and show is a hundred times greater” than even new payment networks. That means that not only can the app show you what you spent, it can tag it to the physical location of the store, pull the logo of the brand, and let you sort your spending by location, category, or cost.

There are other draws, concerning safety and security. The app allows a user to freeze and unfreeze cards at will – perfect for those “where’s my wallet?! Oh, there it is” moments – and can report when and why transactions fail as well as when they succeed.

For users of Monzo today, then, that’s most of the tech on offer. The other major draw is the fact that the service offers fee-free, 0% commission use overseas, something Blomfield gets quite excited about as he checks his own bank account for comparison. “Let’s see how much Natwest charge me on similar transactions. ATM transaction … oh my god. So, for a £100 transaction, about £5.60 in charges, and then an exchange rate that’s way off.

Let’s take the example of Monzo, a startup company that consist of an app, more specifically a banking app.

Finally, a bank as smart as your phone

Built for your smartphone, this is banking like never before. One that updates your balance instantly, gives intelligent notifications, and is actually easy to use.

Monzo isn’t your typical banking app. It’s powerful, fast, and beautiful.

Get instant spending notifications, add receipts to your purchases, manage your budget, and more. We don’t charge setup or usage fees, and there are zero charges for spending abroad.

Fast and friendly support

Still having to wait on hold for hours to get anything sorted with your bank? Monzo provides world-class support through in-app chat, with an average response time of under ten minutes.

We started Monzo because we think that banking should be better

In a world where you can use an app on your phone to order food or a taxi, it’s ridiculous that your bank still takes days to update your balance when you make a card payment.

We’re building the bank of the future, available now.

Banking doesn’t have to be old fashioned

We’re building our systems from scratch, using the latest technology used by Amazon and Google, so we can give you a real-time balance on your account.

Use our API to build apps using your own data, and send us feedback on what features you’d like to see next using our forum.



Group18 – How are banks attracting new customers?

How are banks attracting new customers?

  • By keeping them away. Banks are finding new growth opportunities through online and mobile channels, proving once more that consumers are increasingly attracted to the convenience and speed of mobile and online solutions. Understanding consumer trends will help banks understand how to position themselves as we move into an increasingly mobile reality.


  • Let’s start with credit cards. How often do you think online shoppers stumble across that perfect appliance, which happens to be on the last day of a great sale, but they don’t have the available funds to make the purchase? My guess is it happens all the time. Before online instant approval, shoppers might need to visit their bank, apply for a card, wait for approval, and ultimately never start the process knowing what lies ahead. This is just one example of banks reaching their audience online without ever seeing them.


  • For example, Citibank reported an increase of 472% after implementing online instant account opening, and only needed to hire an additional 38% of new employees to handle the growth. This is a powerful example of how, not only does catering to the millennial mindset of easy and instant create results, but it does so at a fraction of the cost.


  • While online account acquisition produces more accounts with lower investment, there still is an advantage to direct mail. Many banks value the quality that comes from their ability to pre-screen individuals receiving credit card offers. This allows for a more qualified account acquisition, whereas online acquisitions are not so easily screened. For this reason, banks continue to utilize both traditional and online methods.

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Link of the reference

Group 1 – Digital Innovation Transforming the Banking Industry

Every start of a new year is full of uncertainties and changes from every sector including banking industry. It is undeniable that banking is going to look a lot different a decade from now (or maybe even by 2020) since digital innovation is changing drastically and reshaping the way we live.

HOW banking industry will be transformed would be a better question than asking WHETHER or not it will be transformed. New competitors, new technology, and new consumer expectations are impacting the banking industry faster and to a more significant degree than ever experienced.


These are 5 megatrends that are transforming the banking industry and payments in particular:

  • A new organizational paradigm focused on simplification and agility
  • A focus on digital brand equity and an improved consumer experience
  • A blockchain-based payment system
  • An increased importance of machine learning
  • A consolidation of the marketplace lending industry
  1. Simplifying Organizations

    A lot of financial services organizations have been simplifying their business and operating models for both economic reasons and to reduce organizational complexity because they realize that it is more efficient to outsource and/or divest from noncore activities. Moreover, the concept of partnership is also expected to be practised widely in the future.

  2. Digital Brand Equity

    Brand equity in the industry will also increasingly flow from partnerships that are established with others in the ecosystem. Service differentiation and customer experience will increasingly become the major deciding factors, with the ability to deliver real-time insights and offers, transparency and integrated commerce opportunities becoming more important.

  3. Blockchain-Based Payment System

    What does blockchain mean for the payment system? According to Techopedia, “The block chain ledger helps to provide transparency for transactions. Although many bitcoin transactions are in some ways anonymous, the block chain ledger can link individuals and companies to bitcoin purchases and ownership by allowing individual parties, called miners, to process payments and verify transactions.It is predicted that blockchain innovations will be the most transformative change in the payments system for the next decade. All payment volumes is expected to increase drastically by 2025. It is not only lowering the fee margins, but also making the transaction easier even with increasing volume.

  4. AI and Machine Learning

    As the world today is depending on machines and technologies, the role of the human trader in baking industry is diminishing since automated trading has taken their place. Even though the performance of machines to make intelligent decisions is unquestionable, tailored human insights and strategic advice in building algorithms and making investment decisions are still needed.

  5. Marketplace Lending.

    In order to make the lending activity in organizations operate efficiently, some changes in the marketplace have been made:
    1. A stricter regulatory environment for legacy banking organizations, compared to non-banks.

    2. Record-low interest rates, which have negated banks’ traditional retail funding advantage.

    3. Reduced barriers to entry through technology, with new players able to enter without huge upfront investment.

    4. More tech-savvy consumer base with higher expectations of digital delivery and reduced loyalty to traditional banking organization

    Despite the threats from the newcomers to the marketplace, legacy financial institutions will still have greater influence and continue to make more innovation in the future. One of their main strengths is the strong bonds with customers and businesses, by partnering, hiring, crowdsourcing, and piloting new solutions that focus on the customer experience.


Group4 – Free Yourself ! (Online banking & innovations)

Here is an exemple of « how are modern banks attracting new customers? »

A pioneering provider of 100% mobile banking, Boursorama Banque’s digital expertise has so far allowed the group to attract an additional almost 800 000 new customers, all looking for a more modern approach to banking. Today, the brand is taking its efforts to the next level by unveiling the underlying objective of its technological strategy – allowing customers to do their banking without the usual headaches:
➢ no more banking fees
➢ no more queues
➢ no more paperwork
➢ no more impractical branch opening times



Innovation :

Since 2011, the BAI Global Innovation Awards program has connected forward-thinking financial services organizations and leaders who are changing the face of the industry and positively impacting profitability, efficiency and customer experience.

Idea Bank SA : The Mobile ATM Service for Small Medium Enterprises

Idea Bank SA launched a secure multi-functional mobile ATM and depository service housed in an electric BMW i3 car driven by trained bank employees that is offered free of charge for the banks small medium enterprises (SME) customers.

Through a dedicated mobile app, customers can search for the nearest vehicle and designate a time and location for the vehicle to meet them or make an advanced booking. The built in real-time tracking system on the app allows customers to track the vehicle and meet it at the designated location. In the vehicle, they are able to withdraw or deposit cash with all operations synched to their accounts within a few minutes. The mobile ATM service not only meets the increasing needs of customers for mobile solutions that are convenient and easily accessible but also encourages entrepreneurs to keep their money in a bank thus improving their future chances of getting a loan. Here is the original ad (an english version is avaible here :



The winner of the 2016 BAI Global Banking Innovation Awards for Most Innovative Bank of the Year is DenizBank.

DenizBank’s success in innovation lies in the composition of multiple factors. Special innovation teams and innovation committee structures are formed to focus on customer problems and innovative solutions together with the business and technology teams, which accelerate and encourage the innovation process.

Besides organizational positioning, DenizBank is committed to diffusing an innovative culture throughout the company where every employee believes in collective wisdom and synergy. As customers are more connected than ever, all DenizBankers devote themselves to innovative thinking and creative values. In addition, DenizBank adopted an eco-system banking approach and puts significant effort towards building a digital ecosystem with all crucial players.

To improve its open innovation network, DenizBank continuously cooperates with intelligent business partners and works to develop new business models.



GROUP 5: Banking innovation in the Air !

Alipay’s domination in the mobile payments world is reaching new heights — 30,000 feet, to be exact.

Finnish airline Finnair today announced its decision to offer mobile payment service Alipay on flights between Helsinki and Shanghai. Alipay is one of the most popular digital payment methods in its home country of China, and is offered by Ant Financial, a financial services affiliate of the Alibaba Group.

According to the company’s announcement, Finnair plans to begin Alipay in-flight trials at the end of this week, on Jan. 27. Alipay will then be available for a month-long trial period, after which Finnair will make its decision on keeping or expanding the service.

From the announcement:

Alipay, the world´s largest online payment platform and global lifestyle application operated by Ant Financial Services Group, a related company of Alibaba Group, is at the forefront of the cashless world: it has over 450 million active users in China and is used by over 60 % of Chinese people traveling abroad. Helsinki Airport has adopted ePassi-Alipay for some selected shops and sales outlets, which has made payment more convenient for many people passing through.

Alipay’s 450 million users currently makes it the top mobile payment service around the globe. This is in comparison with its closet U.S competitor, PayPal, which claims 192 million.

While this partnership will benefit Finnair passengers, it is also a good step forward for Alibaba’s presence in markets outside of China; Alipay’s service is used for a wide variety of payment transactions whether online or in-store by Chinese consumers but gaining users outside of the homefront has been slow-going for Alibaba.

The company will offer the mobile payment service through ePassi, the top e-payment form in Finland. Flyers on Finnair who make use of the airline’s lounge at Helsinki will also be able to use Alipay for purchases of in-flight goods or a new seat.

Finnair First Airline to Offer Onboard Alipay

Group 7 : Banking innovation, services and new technology: how are modern banks attracting new customers?

These last few decades have seen a lot of innovations in many domains. The banking system is also concerned by these innovations. The aim of this article is to show these ones.

To prioritize innovation, Accenture collaborated with the digital bank in setting up its front-end IT system and digital processes independent from the parent bank. The team was determined to adopt market solutions only for very specialized features, and preferred custom development or open source to reduce costs. The system’s development was agile-based, leveraged responsive design and a hybrid mobile app approach to support multiple devices with the same page and adopted new technologies, like the login by voice or social alerts or digital signature, to be the most innovative bank in its national market. The new front end was also designed to integrate with the banking group’s core system, provide an excellent user experience, a high degree of personalization, like the capability to choose among 9 different languages, and a high level of online service (i.e. account opening in 1 hour). We can take the example of the Moven application which is designed to manage your budget.

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The online bank was successully launched within the first year, and the combined team migrated from the parent bank the financial advisors and related 100,000 customers on schedule. Within the first three months, the online bank had acquired approximately 10,000 new digital customers, and is recognized as a recommended-practice leader in its national market for social banking, customer experience and innovation.

With the online bank already on track for its three-year goals of 500,000 new customers and 100 percent return on investment, the bank is considering extending the digital offering to other customer segments with the same mix of innovation and high service levels.


To attract and keep customers, banks try to create a pleasant environment for them. For instance, at one West Coast bank, customers can spread yoga mat and strike a tree pose or grab a free beer during an Oktoberfest-style celebration. Another national bank offers macchiato at its coffee bar and couches designed for lounging. Locally, banks are adopting Apple Store-like designs, adding concierges, and setting aside space for community groups to meet. Bank of America, for example, recently launched what it calls a flagship office in Boston’s Back Bay, housing in one place the variety of financial services offered by the banking giant. Teller services are squeezed behind a column, while private offices where more lucrative business is conducted dominate the floor space. Capital One Financial Corp., well known for its credit cards, is breaking into the Boston banking market with six new marketing offices called “cafes.” Scheduled to open over the next several months, they will resemble coffee shops more than banks. Employees will serve up java and sandwiches, along with advice on how to set up online accounts and access other services. Modern and innovatively designed branches will drive customer engagement and is the key to branch long-term success.


In the same purpose, they tend to maintain a close relationship with their customers and stay available 24/7 to satisfy their needs as quickly as possible. Equally, some banks are becoming more than just 24*7 by offshoring, with banks such as Standard Bank, South Africa, offering a single dashboard to let relationship managers connect with their clients via any media the client prefers to use including WeChat, Facebook Messenger, Google Hangouts, Whatsapp and so on …


The following video shows also an innovation related to the banking system.

Nowadays, innovation is something very important and even if banks have already made a lot of improvements in the way they provide their services, they are still thinking of new innovations to attract new customers and make the customer bank experience pleasant but also highly secured like the following video shows.


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Group 6: How digital innovation is transforming banking

 Banking is a rapidly changing industry, and the biggest paradigm shift that has occurred is the move to digital-only banks.

Innovation Banking

As fintechs have flooded the scene and disrupted the financial industry, traditional banks have had to innovate in order to stay ahead of the pack.

Corporate investors, specifically traditional players, have started to increase their fintech investments in the last couple of years. This trend is likely to continue in the coming years as incumbents try to stake their claim to the most innovative fintech startups.

On top of this, the biggest banks have already set aside major resources to digitize their businesses. In fact, more than 40% of North American banks have dedicated more than 25% of their IT budget to digital transformation. This can include developing new consumer-facing products and services and modernizing core transactional systems.

To achieve this goal, most traditional banks will use third-party suppliers or will acquire fintech startups for education and mutual benefit.

High Growth in Mobile Banking

The payments segment is much more mature than other fintech areas, and a small handful of companies now dominate the business-to-consumer (B2C) space in particular.

PayPal is the undisputed leader in digital payments in the U.S. and Europe, while Apple Pay and Android Pay have taken over the top spots for in-store mobile payments all around the world. Furthermore, Alipay and WeChat are the top players in China.

A new wave of technologies – such as blockchain, digital wallets and robo-advice – is revolutionising the way we manage, control and distribute money. Gone are the days where you had to enter a bank to carry out a transaction. Just whip out your smart phone with your mobile banking app and you’re set. In fact, today you can even seek financial advice courtesy of automated computer programs – no human interaction required.

Almost every area of the finance industry is being disrupted by these new technologies, forcing the traditional banking sector to re-evaluate and invest in digital innovation, and changing the face of money as we know it.

Blockchain is a public digital ledger with a complete record of transactions, which is shared among a network of computers worldwide. It can be used to transfer anything of value, from money and bonds to house titles and contracts. The most common products currently using blockchain are digital currencies such as bitcoin.

“Banks in general have recognised that something that is publicly available, accessible and secure is potentially disruptive to the current banking model,” says Jonah Cretser-Hartenstein, Manager of Digital Innovation and Emerging Channels at ING DIRECT Australia. “We need to be exploring how we can leverage this technology to enhance our value proposition and potentially find new ways of delivering value to customers as the technology evolves.”


There were times when people dreamt of making payment without cash or Credit/Debit card. And now the dream came true when the service was announced by Apple in the form of Apple Pay. It is the feature that allows users to make payments through iPhone 6/iPhone 6 Plus or the Apple Watch. It requires no Credit/Debit cards to be scratched or shown while making pay.

Apple has linked up with nearly 16 top banks such as, American Express, Bank of America, PNC, etc. across the US for Credit/Debit card support; just add the information of your Credit/Debit card to your Passbook and make transactions on Apple Pay supported stores anytime in the US.

Groupe 11 – Banking innovation, services and new technology: how are modern banks attracting new customers?

The banking sector tends to be slow to adapt to change and digital trends. With increasing pressure by customer expectations, profit goals as well as alternate payment methods and cryptocurrencies, the banking industry is forced to restructure its business. Digitisation has consequently become one of the top concerns for banks.
Digitalisation is a trend – driven by three major forces:
 »Customer experience: Customers are accelerating the drive to digitalisation. They are leaders not laggards, having readily adapted to the digital environment as consumers and retailers. Customers expect a seamless multichannel experience and a consistent, global service. They judge their experience on three levels: how well companies meet their needs; the ease of doing business, and; how enjoyable it is. One of the main challenges for banks is, therefore, adapting their existing service models to changing customer expectations and cost-awareness.
Technology push: Digital technology is rapidly expanding its influence. Digital infrastructure provides billions of customers with affordable broadband and low-cost devices. Meanwhile, cloud computing – with its vast information processing machinery – is rapidly evolving.
Economic benefits: Digitalisation accelerates economic growth and creates jobs, it allows companies to save costs and generate revenue. Indeed, digitising information-intensive processes can cut costs by up to 90% while improving turnaround times. Software also allows businesses to collect data that helps them understand process performance, cost drivers and risks, which enables managers to proactively address problems. »
The banking industry has produced innovation in many different ways. We have categorised these new technologies into two sectors:
  • innovative products and processes that directly affect the customer and improve experience
  • digitisation in the back-end that improves the bank’s performance and daily business

Innovations for customers:


  1. Online Banking
  2. Mobile Banking

Group10_First part about the importance of innovation and good security systems in order to attract customers

  • Nowadays, in order to compete with the Fintech firms (Financial Technology,  describing a business that aims at providing financial services by making use of software and modern technology), Banks need to adapt their services to the changing preferences of customers. So, the are making investments to drive innovation and provide attractive offers. Considering that all banks provide the same services and products, the main factor to differentiate them is the price.
  • The banking industry is highly regulated, but with the fast growth of smartphones and changes in customer demographics, banks need to develop innovative products and services. There are 5 different approaches to drive innovation and attract new customers, which are shown on the diagram below.
  • Moreover, the digitalization of processes and the use of Internet increase the risk of cyber-attacks which could lead to a loss of customers’ trust. So, in order to attract people, banks are promising efficient security and authentification systems to customers.