E-BANKING Damian Sztuk, Jakub Mazur, Boris Moroseac

E-BANKING – CONCEPT AND FUNDAMENTALS Computer networks Business model of conducting banking activity on 5 pillars: 1. remote B2C communication (branchless) 2. full integration in banking structure 3. paperless services 4. cashless payments 5. customer-based interactions

THE LESS YOU CAN SEE THE BANK, THE MORE IMPORTANT IT IS … Computer networks

FROM ANALOGUE TO NETWORKED DIGITAL Computer networks

EROSION OF BANK INFORMATION ASYMMETRY Computer networks

RAISING POWER OF WEB COMMUNITIES Computer networks

DIRECT SOURCES OF BANK INNOVATIONS Damian Sztuk

DESKTOP INTERNET BANKING IS OVER … Computer networks

MOBILE INTERNET BANKING IS FUTURE … Computer networks

MOBILE INTERNET BANKING – FIRST PHASE OF J. SCHUMPET INNOVATION CYCLE Computer networks

New paradigm of banking services

Computer networks Creative destruction- J.Schrumpeter

Computer networks J.Schrumpeter- innovation dimensions New functionality- existing systems but new solutions New distribution channels- pure technology progress New market- creating and meeting needs New business activity- integrating areas of activity New market structure- changing role of leading companies

Computer networks J.Schrumpeter- creative destruction

Computer networks New functionality

Computer networks New distribution chanels

Computer networks New market

Computer networks Core-capabilities of e-banking Integrating physical and virtual channels New IT-infrastructure Enchasing transaction content Conveying value propositions Delivering differentiated services Managing customer relationships Positioning in attractive site

Computer networks Triggers for e-banking adoption in EU

Computer networks Distribution channels

Computer networks 4 clusters of on-line banking adoption

Computer networks Growth dynamic

Computer networks Infrastructure triggers

Computer networks Professional activity

Computer networks Web 2.0

Computer networks Behavioral factors

Computer networks Passive interaction

Computer networks Prosumer – on-line consumer professional consumer

Computer networks “Progressive Consumer”

Computer networks Prosumer 1.Researching a product value, performance and price through: a)Social networks (twitter, facebook) b)Consumer product reviews (Amazon.com) c)Prices comparison shopping engines 2.Prosumer researches all aspects of a products performance, price and social acceptance in relative comparison to similar products within the same category. 3.Prosumer is searching for the highest quality product that best meets their personal needs for the maximum amount of money they are willing to spend.

Computer networks Preferences when conducting research on banking products and services

Computer networks Most influential sources in selecting banking services

Computer networks Gen Y consumer tendencies Independently dependent- favor social networking forums to conduct research on bank offers Practically motivated- prefer price over brand and are the least likely to stick with a single brand even if they like it Tech-Savvy- „DotNet” generation Socially Mindful- atractive use social networking sites to increase awareness of corporate practices Financial Freshmen- voice the highest level of discomfort, relative to other age groups, about complex bank products and services

Computer networks Internet banking I Stage: source of information II Stage: distribution channel III Stage: I-banking WEB 1.0 IV stage: I-banking WEB 2.0

Computer networks The end