Building a Compelling Digital Banking Experience. Presented at the SEA Banking Technology and Innovation Summit in Jakarta, on March 30, 2016.

1. SOUTHEAST ASIA BANKING TECHNOLOGY & INNOVATION SUMMIT 2016
B u i l d i n g a C o m p e l l i n g
D i g i t a l B a n k i n g E x p e r i e n c e
R a j a Te h M a i m u n a h
C h i e f E x e c u t i v e O f f i c e r
keynote:
BANKING ON
INNOVATION

2. 140%
MOBILE
PENETRATION
99%
MOBILE
PENETRATION
SMARTPHONES
28%
FEATURE PHONES
67%
30%BAN KIN G
POPULATION
< 80%BAN KIN G
POPULATION
SMARTPHONES
79%
FEATURE PHONES
21%
so how do we fare?

3. Significant domestic
cash in circulation
14th biggest remittance
recipient in the world,
receiving more than
USD10.5 billion in 2015
(up 22% from 2014)
notable attributes

4. Significant domestic
cash in circulation
14th biggest remittance
recipient in the world,
receiving more than
USD10.5 billion in 2015
(up 22% from 2014)
notable attributes
The advantage belongs to Indonesia
to achieve a larger & more rapid growth rate
…through the advanced technology available today

5. but first, some mind-blowing numbers…

6. 3.2b Online Users
44% of world population*
47b
E-Commerce & Mobile
transactions & payments
2011-2015**
4.9bConnected things
Up 30% vs 2014***
25b
Source: *International Telecommunications Union **Capegemini ***Gartner Inc.
There are more mobile phones than
there are humans on this planet

7. *Cisco VNI 2015 / Statista
2014
2015
2016
2017
2018
2019
1.74EB
2.96EB
4.87EB
7.80EB
11.97EB
18.24EB

8. A Large
Novel
Information
in the human
genome
Annual World
Literature
Production
All US Academic
Research
Libraries
2/3 of Annual
World Production
of Information
A Tiny
Ant
Height of
a Short
Person
Length of Auckland
Harbour Bridge
Length of
New Zealand
The Sun’s Diameter
DATASIZEINPERSPECTIVE

9. …. but if you were to combine the data from ALL digital devices…
the volume of data processed in 2014 was approximately 6 zettabytes*.
6 zettabytes? :
6,000,000,000,000,000,000,000 bytes.
*Source: IDC
How much data is that?

11. “It’s challenging isn’t it?”

12. Among global banking organizations, there are three groups in terms of readiness
In Malaysia, we’re doing pretty well
*IBM Institute of Business Value 2015

13. You’re heading in the right direction too!
Realization of BTPN Wow to promote
financial inclusion among the lower-
income segment
Allowing banks to use agents as an extension of the bank
in reaching out to previously unbanked communities
Reducing the burden on banking operations as banks will
not need to build infrastructure in the form of branches
Joint-commitment from 3 of Indonesia’s largest cellular
operators to offer affordable rates & services
Aggressive education campaign

14. Following the footsteps of some of the
world’s most innovative digital banks

15. CASE STUDY 1 -
A greenfield
venture that
became Poland’s
3rd largest retail
bank

16. CASE STUDY 2 -
A branchless
concept that
continues to open
new segments for
its parent bank

17. Deposit, withdraw, transfer money and pay for goods
and services with a mobile device.
Singlehandedly gave 20million Kenyans access to
financial services (out of 44 million total population)
Instrumental in bringing Kenya to 75% in
banking population, highest in Africa, ahead of
economic giants South Africa, Nigeria, Ghana.
PAKISTAN
Setup a bank account in just 3 minutes from a mobile
phone. Enables users to visit any Easypaisa shops to
deposit and withdraw cash.
Users can also pay bills, transfer money, check
balance, manage pin codes and more.
6 million accounts to date, making Easypaisa
Pakistan’s 3rd largest bank.
KENYA
CASE STUDY 3 -
How feature
phones can still
make a difference
in financial
inclusion
KENYA
&

18. “AGGREGATORS”
COMPARISON
SITES
PERSONAL
FINANCIAL
MANAGEMENT
SOLUTIONS
Increase
pressure on
loyalty & price
Become
customers’
primary interface
“INNOVATORS”
SOCIAL
INVESTING
APPS
PAYMENT
PLAYERS
LENDING
PLATFORMS
Becoming
main
source of
investment
advice
Attack
banks’
traditional
core
business
Leveraging
on Big
Data
“DISRUPTORS”
P2P
PLATFORMS
EASY-BANKING
PROVIDERS
Cutting out banks
as the middle-
man
Appealing to
customers
Non-banks & 3rd Party Technopreneurs are Chipping Away At Banks’ Existence
Expect competitionwhen landscape matures…

20. First of its kind remittance function in partnership with
Finnet, Telkom Indonesia
Indonesian workers open virtual account and identify
recipients in Indonesia
Insert MYR into cash deposit machine, select ExpressRemit
function and select recipient
Insert Ringgit and machine will convert value into Rupiah
Recipient in Indonesia will receive notification, collection code
Collect funds at participating Finnet / Telkom outlet

21. PAYMENT
EXPRESS
Peer-to-peer mobile money transfer
Send to mobile phone numbers, not bank accounts
Select from address book, key in amount, generates code
3 ways for recipients to collect:
- withdraw from HLISB/HLB ATM, no cards needed
- transfer online, directly to their own bank accounts
- to a fellow PEx user, it goes straight into recipient’s acc.
Send reminders requesting for a PEx transfer

22. Customer opts to pay retail/food bill with PEx+
MERCHANT
PAYMENT
Merchant enters bill amount on their mobile device
A QR code is generated for the customer to scan
Bill amount is transferred from customers’ account into the
merchant’s account instantly.

24. many more
but my time’s up…+
Other notable functions & services…

25. “Malaysia’s Best Internet Bank 2015”
Global Banking & Finance Review