Innovations in Mobile Financial Services MIL-CLJ215-23102009-61085/PL Innovations in Mobile Financial Services Radek Jirka, UniCredit Bank Czech Republic and Slovakia, a.s.

UniCredit Group at glance 17 countries 40 mio customers 9.000 branches 148.000 employees Number ONE in CEE

Innovative mobile services play important role in successful expansion of UniCredit Bank in Czech Republic and Slovakia Strong expansion of branches & franchises network New UniCreditShop.cz Growth of brand awareness New generation of ATM´s Modern & innovative mobile services

Mobile banking development on Czech market User popularity App mBanking & mToken Mobile WEB GSM Banking (SIM Toolkit) JAVA Banking SMS Banking 2000 2002 2005 2008 2011 2014 Time

penetration rate in Europe 2013 Smartphones are pushing and tablets are following… 57% smartphone penetration rate in Europe 2013 Source: StatCounter, GlobalStats More tablets vs. PC Shipments in 2014 Source: Tech-Thoughts

Finances follow the trends 64% of mobile users worldwide currently utilize some form of mobile banking Source: Carlisle and Gailagher Consulting Group

In today´s multi-platform environment many people consume content on the go using differnet devices troughout the day Source: ComScore

Mobile banking - around 70% of banks Mobile banking is just beginning Mobile banking - around 70% of banks offer some form of mobile financial services mToken - verified by regulators and banks as best suited Personal finance manager - new tool how increase cross sell and up-sell mPayments - banks, telco´s and merchants significantly invest mCommerce - new way how to make aquisitions via mobile phone mLoyalty - new possibilities how to increase customers loyalty

It should be single app…

Smartphones between other payments method anytime & anywhere Mobile payments Smart Banking Cards Internet banking slow quick Bill Cash at this moment 9 9

Retention Cross-sell/up sell Acquisition channel? Where is the value Pre-login functions (FX conversions, calculators, …) Location based services (ATM/Branch finders, Merchant offers,…) Camera (QR codes) Transactions (P2P) mToken Cross-sell/up sell Term deposit opening Top-up/Recharging Sales of preapproved lending products Leads to sales Acquisition channel? Current acounts opening (full online) Saving accounts opening (full online) Prescored leads for: consumer loans credit cards mortages

The balance is delicate…. Clients demand security - Integrate mToken

Case study: mToken - how to combine more channels together 1app Smart Banking & mToken

Multi-channel strategy moves from branch centricity to customer centricity mBanking & mToken Web & Online Banking Branch Contact Center ATM´s

New age of direct banking …combination of more channels together Online Banking as "aircraft carrier" for mobile services Smart Banking and mToken as " fighter planes" always available… Online Banking Smart Banking & mToken

Smart Banking - new innovative gesture navigation

mobile phones on Czech market About mToken mToken is a simple application in the mobile phone through which you can generate unique codes both for your login and signing payments in Online Banking. +80% mobile phones on Czech market Which mobile phones allow mToken? – Android, – iOS – BlackBerry – or other mobile phones with Java support Current Online Banking offer: SMSToken mToken HW Token

mToken easy activation New customer on branch Bank system generate 2 SMS Current customer via Online Banking Customer input activation code Use mToken Online Banking generate 2 SMS

mToken functions OTP Login code OTP code for transaction sign QR OTP code for transaction sign This code you can also use for remote identification in Call Center Sign one or more transactions at once After QR scan in Online Banking client will get all transaction details into app in mobile phone

Mobile devices have taken banking to the streets. Summary Mobile devices have taken banking to the streets. The need to pay, enquire and transfer funds P2P ‘on the go’ is evolving, especially with Y generation. This need will be met by the Banks or someone else…

Thank you. radek.jirka@unicreditgroup.cz