Virtual Banking - A Guide to Innovation and Partnering

Technology is permanently transforming the banking industry, and digital payments are the key
 
Electronic Payments, Mobile Commerce, and Virtual Banking: A Guide to Innovation, Partnering, and Regulation takes a hands-on approach to competing in the modern banking environment. Former PayPal Head of Financial Innovation Dan Schatt explores the reasons behind the massive consumer migration away from traditional banks, and provides clear, actionable guidance on beating new banking models at their own game. Digital payment is the hottest topic in banking today, and is set to define the future of the industry.
 
Consumers are rapidly abandoning traditional banks in favor of institutions that are lower-cost and more consumer-centric. Between the pace of financial regulatory reform and the cloud computing revolution, the old banking model is on the fast track to extinction. Electronic Payments, Mobile Commerce, and Virtual Banking provides the information banks need to compete in this new environment, and details the integral implementation actions that will allow them to thrive. The book discusses real-world innovations from banks, non-banks, and up and comers, and the heavy competition from the new outsource bank model. Topics include:
* The changing POS landscape and the need for digital wallet partnerships
* Shifting gears to greenfield market opportunities versus non-profitable markets
* Digital channel best practices for superior customer experience
* When to outsource, and what capabilities to truly own
 
Case studies including PayPal, Google, Square, Facebook, Twitter, and more illustrate acceleration of innovation through banking partnerships, as well as the mechanics behind banking's biggest, scariest threats. The trick to surviving the paradigm shift is to embody innovation while providing a superior customer proposition. Electronic Payments, Mobile Commerce, and Virtual Banking: A Guide to Innovation, Partnering, and Regulation provides the inside track on managing the shift and dominating the new marketplace.

List of contents

Foreword xiii
 
Preface xv
 
Acknowledgments xix
 
INTRODUCTION
 
Innovating through Scarcity 1
 
The Influence of Cloud on Innovation 3
 
The Influence of Smartphones 4
 
Big Data = Big Driver of Innovation 4
 
Taking a Cue from Retailing 5
 
The Enemy of My Enemy Is My Friend 6
 
Reconciling Innovation and Regulation 6
 
In Search of New Payment Revenue Streams 8
 
New Skill Sets for a New Era 9
 
A Road Map for This Book 9
 
Notes 11
 
CHAPTER 1 Consumer Empowerment Knocking at the Door 13
 
How Mobile Is Reshaping Consumer Expectations in Financial and Retail
 
How Mobile Is Changing Consumer Behavior 15
 
Mobile Is Blurring the Lines between Digital and Physical 17
 
Mobile Learnings from PayPal and Square 19
 
Mobile Commerce through Tokenization 27
 
The Mobile Camera--It's Not Just for Pictures Anymore! 29
 
The Mobile Microphone--Offers and Payments through Soundwaves! 30
 
NFC's Rebound and the Promise of Host Card Emulation 31
 
Apple's Passbook 33
 
The Apps Phenomenon 35
 
The Uber-ization of Mobile 36
 
"Top of Wallet" to "Top of Mobile" 38
 
The Case of Braintree and Simple 39
 
The QR Code 40
 
What Banks Can Learn from Starbucks 41
 
Leveling the Playing Field with LevelUp 43
 
From Mobile Banking to Tablet Banking 45
 
Mobile Models for the Emerging Markets 47
 
What's Next? More of the Same 51
 
Notes 52
 
CHAPTER 2 Social and Financial Services 55
 
Maintaining Relationships and Relevance through Social strategies
 
Digital, Data, and the Future of Banking 58
 
Social Media Experiences in Banking 60
 
Gamification 62
 
Personal Financial Relationship Mapping 63
 
Capitalizing on Social Banking 65
 
Moven: Delivering Banking through Social Context 66
 
Social Banking in Europe and Asia 70
 
Social Login, Sharing, and Top of Wallet 71
 
Peer-to-Peer Lending: Blending Social and Banking 73
 
Beyond the Hype: Partnering for the Future with Peer-to-Peer Lenders 74
 
Lending Club: A Win-Win for Banks and Their Customers 75
 
Takeaways for Banks 79
 
An Investor's Perspective on Social Banking and the Emergence of Bitcoin 80
 
Message To Banks: Be a Smaller Part of a Bigger Pie 85
 
Notes 86
 
CHAPTER 3 Connected Financial Commerce 89
 
Location-Based Services, Mobile Commerce, and Digital Wallets
 
The "Local" Digital Wallet 91
 
The New Retail Experience 91
 
Retail 2.0 and Its Effect on Payments 93
 
Entrepreneurs, Developers, and Financial Services 95
 
Context Banking: The Next Step 96
 
Low-Energy Bluetooth, Hardware, and the Future of Commerce 97
 
iBeacon and EasyPay: The Future of In-Store Payments? 98
 
PayPal's iBeacon: Proximity and Context 100
 
Google Glass for Finances 101
 
In Search of the Digital Wallet 102
 
Personal Financial Management 103
 
Coupons 104
 
Shopping Tools 104
 
Loyalty and Prepaid 104
 
Tickets and Passes 105
 
The Who's Who of Digital Wallets 106
 
Google 107
 
LifeLock (formerly Lemon Wallet) 108
 
PayPal 109
 
Carriers 110
 
Retailers 111
 
Square Wallet 113
 
What's Next? 113
 
Notes 114
 
CHAPTER 4 Innovating with Big Data and Open Platforms 115
 
Competing in a World of Unlimited Data and Storage
 

About the author

DAN SCHATTis the former Head of Financial Innovations for PayPal, responsible for defining and executing on PayPal's initiatives with the financial services industry. Schatt has also been an advisor to CGAP, part of the World Bank, and an industry analyst with Celent. Prior, he worked in the Financial Institutions Group at Citigroup. He currently serves as Chief Commercial Officer for Stockpile.

Summary

Technology is permanently transforming the banking industry, and digital payments are the key Electronic Payments, Mobile Commerce, and Virtual Banking: A Guide to Innovation, Partnering, and Regulation takes a hands-on approach to competing in the modern banking environment.

Product details

• Authors: Schatt, Dan Schatt, Schatt Dan
• Assisted by: Laplanche Renaud (Foreword)
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 02.09.2014
• EAN: 9781118742471
• ISBN: 978-1-118-74247-1
• No. of pages: 240
• Dimensions: 165 mm x 235 mm x 20 mm
• Series: Wiley Finance; Wiley Finance Editions; The Wiley Finance Series; Wiley Finance; Wiley Finance Editions
• Subjects: Social sciences, law, business > Business > Management; Bank, Finance & Investments, Finanz- u. Anlagewesen, Geld u. Bankwesen, Money & Banking