Waggener Edstrom Studio D I&A APAC Digital Banking Narratives Insights Report-2013

Th e Em erg i ng Edg e

dig ital Ban ki ng & Stan dard Chartered A stu dy of mai nstream m edia narratives i n th e Asia- Paci fic, M i ddle East an d Africa reg ions

CONSULTANTS

About WAGGENER EDSTROM

Waggener Edstrom Worldwide (WE) is a global integrated communications agency that provides consultancy and actionable solutions around the creation of integrated influence and content marketing for business impact.

In Asia-Pacific, WE has offices in Singapore, Mumbai, Beijing, Shanghai, New Delhi, Hong Kong and Bangalore.

Za heer Nooruddin

APAC VP, Digital, znooruddin@waggeneredstrom.com

Arnab Roy

Senior Account Manager, aroy@waggeneredstrom.com

Madhu Nair

Insights and Analytics Senior Analyst, mnair@waggeneredstrom.com

About WE I nsig hts & Analytics

WE’s experienced network of digital and content strategists, copywriters, visualizers, and video producers, provides innovation in storytelling for integrated influence.

WE Studio D’s award-winning insight & analytics (I&A) division combines research and analytical expertise with technology to create proprietary insights about audiences, brands, consumers, as well as the media and influencer landscape - measuring the real business impact of integrated storytelling.

Yi Ya n Sea h

Senior Account Executive yseah@waggeneredstrom.com

Bala M u ruga n

Insights and Analytics Analyst, bmurugan@waggeneredstrom.com

Pa g e Co nte nt

6 Executive Summary 8 Narrative Network Map 9

Publications and Priorities 10 Core Narratives

Ch i na represents

n early 45%

of th e total m o b i le ban ki ng users arou n d th e wo rld.

Deloitte 2012 China Banking Industry Top Ten Trends and Outlook [35]

57 %

o f i ntern et users i n I n dia prefer to use on li n e ban ki ng fo r fi nancial transacti ons an d servi ces.

The Times of India [36]

81%

I n Ch i na, use social n etwo rki ng sites as a sou rce o f ban ki n g i n fo rmati o n .

Ernst & Young Global Consumer Banking Survey 2012 [37]

TABLE OF CONTENTS

11 Emerging Markets 12 Regions 12

Asia Pacific

13

Middle East & Africa

15 Market Presence 16 Technology 17 Security 18

Data Security and Data Privacy

19 Banks in depth 20 Narratives Concerning Banks 21 Standard Chartered 22 Citibank 24 HSBC 25 DBS 26 Topics In Depth 28 Digital 31 Internet Banking 34 Mobile Banking 38

The Narrative Clover

40 Strategic Insights & Recommendations 44 Conclusion 45 Glossary & Methodology 46 References 47 Charts

EXECUTIVE SUMMARY

O

n May 24, 2012, Goldman Sachs did something it had never done in its venerable 143-year history. It tweeted. “We are now live on Twitter (finally) at the GS Annual Meeting,” chirped the inaugural tweet. “Follow us here for updates on our work, our research, and our people.” [1]

Citi ban k busi n ess leaders em b race an d 2 crystalize th ei r busi n ess’ di g ital strategy

Goldman Sachs We are now live on Twitter (finally) at the GS Annual Meeting, follow us here for updates on our work, our research, and our people.

Expand

One important observation from this expansive media narrative audit is that, unlike any of the other banks, Citibank’s senior leaders have been recognized for their efforts in developing a coherent and sustainable business strategy around digital banking.

132 characters for Goldman; one giant leap for the Twitterverse. This significant step illustrates how even traditional institutions are changing their voice in the public sphere. However, what we explored through this report is not the social media narrative in play but narratives that different banks are using to tell their own digital banking story in markets across Asia-Pacific, Middle East and Africa.

As we are all aware, we are witnessing an unprecedented change in banking operations today, thanks to the adoption of technologies by banks and the rising affluence and expectations of customers especially in emerging markets.

Illustrated by the narrative map in this report (Page 6), you will note mobile and internet banking are the most common digital themes that banks and industry writers have been making a lot of references to. While digital related terms such as “social media” or “marketing” have made their way into banking conversations, they have not been referenced or talked about as many times as either internet or mobile banking, which in turn explains the positioning of these themes in the narrative network.

Looking across the regions of Asia-Pacific, Middle East and Africa, It is evident that the consumer’s digital expectations and capabilities are rising and traditional banks are investing heavily to not only match these expectations but to also capitalize on them as the tipping point for digital banking has finally been reached. Based on more than 200 media reports and stories around the “digital” narratives in banking curated by our team, the following 3 key insights surfaced.

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Citibank’s senior leaders have been quoted in media across the regions and markets audited, making statements about the future trends in the digitization of banking. This includes media quotes from former Citigroup global CEO, Vikram Pandit [2] and, closer to home in Asia, Jonathan Larsen, Citibank’s Asia Consumer Banking Head [3].

Senior executive quotes have garnered significant interest in media and have helped to aggressively amplify Citibank’s vision of digital banking, especially in the Asia region.

1

Larsen was quoted as saying that Citibank’s goal was to “create a global digital bank”. [3]

Th e ti ppi n g poi nt fo r traditi o nal ban ki n g has b een reach ed an d di g ital wi ll b e th e fu lcru m u po n wh i ch it rests

Frank Eliason, the customer service veteran that Citibank hired out of Comcast two years ago, has also been quoted in financial services industry media news stories that he is constantly improving and adding new technology layers to the bank’s social media initiatives [4].

The bulk of the stories are emerging out of Chinese and Indian media outlets, but banks are also viewing emerging markets such as Vietnam, Kenya and Sri Lanka, as opportunities to offer digital banking services in the form of internet or mobile banking options to customers.

Another bank whose senior executive has made himself visible in the media landscape and put forth statements about his bank’s digital offering is ANZ’s global CEO, Mike Smith.

ANZ has been looking to aggressively expand in the China market and the bank hopes to supplement its branches with “access in terms of internet and mobile phone banking” [5]. A notable segue as it pushes ahead with its expansion across Asia.

Furthermore, the growing digital preference in these markets has also presented potential for global banks to embark on collaborations and partnerships with companies such as Monitise and Tagit.

These collaborations and partnerships in turn create value across the bank’s value chain.

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Although regional heads and chief marketing officers such as Sanjeeb Chaudhuri, Regional Head, South Asia & Chief Marketing Officer, Consumer Banking for Standard Chartered or Titiporn

Thammapimookkul, eBusiness Head, Citibank have issued statements concerning digital banking, they have not created substantial media resonance within the respective bank’s coverage.

In essence, Citibank has not just been pushing out their views on digital banking and technology; they have been delivering strong, focused and most importantly consistent messages on Citibank’s desire and pursuit to become the leading global digital bank.

n g sticki er narratives arou n d 3 Creati m ob i le ban ki n g an d its products a priority Mobile banking continues to dominate banks’ application development initiatives, as it has for the past several years.

Consider this: Citibank has CitiMobile; HSBC had created its Interbank Mobile Payment Service (IMPS) application for similar purposes and Standard Chartered owns Breeze.

While these mobile banking products have been mentioned by banks in corporate communications or news reports, they have only been a subset of the banks’ digital conversations. None of these mobile banking products have been consistently weaved into the broader digital banking narratives the banks owned. As a result, most of the core digital banking themes as seen across the media landscape narrative have been more corporate than product-centric.

As digital banking applications become more pervasive in Asia-Pacific, Middle East and Africa regions, there is room for new payment and rewards programs to be delivered via mobile platforms. Standard Chartered has the opportunity to consistently amplify its digital banking priorities as it continues to progress.

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NARRATIVE NETWORK MAP

Pu blications an d Prioriti es Ti ered M edia types

SHARE OF TIERED MEDIA

Tier 1 Tier 2

Tier 1 27% Tier 2 73%

Corp comms

Press releases

General News

Figure 2 – Tiered Media Types

Figure 3 – Share of Tiered Media

TIER 1 PU B LICATIONS

TIER 2 PU B LICATIONS

The Tier 1 publications included mainstream news agencies like the Wall Street Journal and The Financial Times, had many news stories centered on e-commerce and mobile payments, with China being the most referenced country in the coverage.

DBS and Citibank were the most featured banks in Tier 1 publications, mostly about the launch of their online and mobile banking applications.

The bulk of the coverage gathered was from Tier 2 publications, with The Asian Banker being the biggest contributor of news stories used in this research. Stories of banks winning awards have formed a big part of Tier 2 coverage. Interestingly, Standard Chartered was featured prominently in Tier 2 coverage, especially news stories about its digital awards and its digital venture into India.

Figure 1 – Narrative Network Map

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The core / main theme of the narrative network is represented by the blue nodes located in the centre of the map. These central themes have been the most prominent conversations occurring throughout the media reports

Social media platforms, analytics and digital marketing form a peripheral narrative

The green nodes signify a theme based on security, fraud detection and enterprise

The sub narrative comprise conversations from the Middle East and African publications

Emerging markets such as Thailand and Indonesia make up another peripheral narrative

Stories on the adoption of digital, especially mobile payment technology, the collaborations involved and user experiences that followed make up the purple sub narrative.

T

he gulf in volume of Tier 1 and Tier 2 news stories strongly suggests that digital banking stories have not struck a chord in terms of appeal to mainstream media. Whether this is a reflection of general banking customers preference is still debatable. The larger volume of Tier 2 news stories also suggests that the product and services narratives thus far have not demonstrated differentiated customer value.

Put simply, no one has a breakout mobile banking platform that is the iPhone of banking applications.

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Em erg i ng Markets

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part from the markets noted in this report, additional geographies have gained significant mentions - to the extent that they appear in the narrative network.

For instance, Vietnam accounted for a significant number of stories involving Tagit’s collaboration with Smartlink and the mobile banking solutions services that the former provides the likes of Standard Chartered.

CORE Narratives

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ur study revealed numerous narratives and coverage cycles over the course of the year. They broke down into the following major themes: • • •

As for Africa’s media coverage set, there were considerable mentions of Kenya, alongside Nigeria.

Standard Chartered news stories on digital banking as well as analysts have made references to online banking in Kenya, through quotes such as “The only remaining question is whether Nigeria’s project will prove as successful as M-Pesa in Kenya” [6].

Geographical - Emerging Markets and Regions Technological – Data Security and Privacy Banks

Kenya is seen as having a successful existing mobile banking presence through M-Pesa. The amount of significant mentions of this market in Citibank, Standard Chartered and HSBC news stories suggests that these banks are looking to develop a mobile banking system in Nigeria. They could also be looking at developments in Kenya to not only gauge the measure of their success, and also to avoid potential challenges, when doing business in Africa.

The core themes or blue nodes shown in the narrative network are the most frequently occurring topics observed in the coverage. While most of the markets are in the sub narratives of the coverage, China, Hong Kong, Singapore and India are placed in the core narratives, illustrating where some of the bigger banks are focusing their attention, in terms of growth and strategy. Among all the digital banking themes, mobile, internet and online banking have been mentioned significantly enough to be called out in the digital narrative.

CORE NODES

INTERSECTION

“Th ere is good reason to b eli eve that th e com b i nation of th e two develo pm ents [m ob i le an d on li n e ban ki n g] may provi de a good fou n dation for success i n N ig eria” DATAMONITOR [6]

SUB NARRATIVES

Figure 4 – Core Narratives-Tiered

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7

8

9

Reg ions

Reg ions

Volu m e of Coverag e

N

ews stories belonging to publications in China, Hong Kong, Singapore and India form the bulk of the coverage gathered. However, it is worth pointing out that the research is based on English written pieces. Given that the most widely read publications in the rest of the countries from Southeast Asia, Middle East and Africa may not be in the English medium, these news stories gathered for this research could be skewed towards countries that have more English based media outlets.

M essag es across di fferent reg i o ns

ASIA PACIFIC

We observed from the media reports that the conversations emanating from the different regions have been somewhat different. News stories picked up from China, Hong Kong, Singapore and India have revolved around the themes of growth, trends, strategy, launch of digital products and services and increasing presence in emerging markets. Citibank is the most predominantly featured bank in digital related media reports from the above mentioned countries.

Some of the more eye catching Citibank news stories from these regions are “I am long on India and China” [7] and “Citibank launches new Payment Analytics tool” [8]. Across all the countries studied, India and China account for the most news stories, primarily about the launch of new services and offerings by banks, such as Citi Mobile (by Citibank) and India’s first instant online Credit Card approval solution (by Standard Chartered).

India and China were clearly mentioned in connection with concepts like strategy, investment and value – indicating that banks see these markets as “developed emerging economies”. Conversely, conversations on emerging economies such as Vietnam and Malaysia, are markets gaining importance and could perhaps be termed nascent at this stage.

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“ MIDDLE EAST & AFRICA

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hile stories from the Asia-Pacific region have been focused on the themes of growth and strategy, much of the media reports in Middle East and Africa center on the launch of digital and online services as well as enhancing consumer experiences.

As anticipated, Guaranty Trust Bank has been dominant in African media reports while those in the Middle East are spread across Citibank, Standard Chartered and HSBC news stories.

Interestingly, while Citibank has been a dominant feature in media reports gathered from Asia Pacific, Standard Chartered has attained a slightly stronger presence in Middle Eastern and African outlets with regard to conversations on digital technology.

Citi ban k UAE is an i m portant busi n ess to ou r overall consu m er fran ch ise an d th ese i nvestm ents are n ecessary to keep u p with th e dig ital chan g es we experi en ce each day, Michelle Peluso, Global Consumer Chief Marketing & Internet Officer, Citibank [29]

“

News stories such as “Mobile banking boom expected in Nigeria” [6], “Standard Chartered hikes up investment in Africa” [9] and “Standard Chartered unveils plans for 100 million in Africa” [10] indicate that the UK bank foresees significant potential for mobile technology in Africa and has been taking huge steps in trying to capitalize on these opportunities.

On the other hand, looking at Middle Eastern media reports, most of the Standard Chartered news stories have been about its wins at the Internet Bank Awards and Best Online Banking Strategy, while the more prominent Citibank stories have been about the launch of its UAE Facebook page and latest digital services.

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Reg ions

Market presence

T

he chart below illustrates the emphasis that banks put on different markets using the tie-strength of banks to particular regions, as mentioned in news articles. We see that DBS had the highest number of mentions in close association with Singapore and secondarily, China. It can be inferred that Singapore is a priority market for DBS.

MIDDLE EAST & AFRICA As a whole, digital conversations from these regions lacked a depth in its coverage that we observed in Asia-Pacific. As mentioned above, banks’ digital conversations from these regions have been limited to either stories on digital awards or the setting up of their social media pages in the respective regions. In contrast, the news stories collected from Asia-Pacific outlets have showcased banks going beyond setting up a social media presence. While the Middle Eastern regions pose their fair share of complexities in establishing a banking presence there, none of the banks can claim ownership of the digital banking conversations in the region.

Market presen ce by ban k

Banks which can successfully offer customers access to tailored Islamic banking products will have a huge advantage in establishing a strong digital banking presence in the Middle East market [11].

Technology allows for a greater customer experience, and catering to the cultural and geographical factors of how a population banks is an important aspect of personalization.

In addition, Africa presents unique challenges due to barriers in access to banking services. Branchless banking, possible with greater mobile banking solutions may hold the key element in this emerging region. As Mwaura Ndauti (Head of the National Payments System, Central Bank of Kenya) explained, “... mobile technology has enabled even the poorest sections of society to access banking services.” [12]

Figure 5 – Market Presence by Bank

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1311

Tech nology

SECURITY

This chart illustrates the specific elements of the digital narrative that each bank participated in.

Tech nology M enti ons by ban k

W

NFC

Figure 6 – Technology Mentions by Bank

T

he top conversations in media by volume were “online banking”, “mobile”, “mobile banking” and “internet banking”. The larger segments in each of these conversations indicate dominance in that conversation.

Citibank appeared to dominate conversations on “innovation”, “digital”, “technology” and “social media”, while Standard Chartered had the most volume on “online banking” news stories. While DBS dominated “internet banking” and “mobile banking”, interestingly they also almost exclusively own news stories on Near Field Communication(NFC), devices and smartphones.

The above mentioned details simply elucidate the view that technology is one of the main drivers in banks’ efforts to keep up with customers’ rising expectations in the services that they received. Many banks have recognized that products are no longer differentiated to a large extent, and branding is not the sole factor in success. What really matters is to adapt to customers’ changing behavior by using technology. [13]

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The benefits of technology are not limited to the banks in this study.

In The Banker on the banker awards for 2012, at least half of all the bank branches that won awards reported that they have either been investing heavily in technology or technology is a huge priority for them [14]. With the proliferation in smartphone usage, NFC and even Big Data in some industries, technology has become an integral part of digital banking conversations.

Despite the advantages that technology offers to banks trying to promote digital banking, it comes with its fair share of problems. For instance, while Citibank has been leading the conversations on digital banking narratives, its efforts to become a leading digital bank hit a snag early last year when a technical bug resulted in customers being charged double when they made their payments via their iPads. [15] However, the most pressing concern associated with digital banking is the issue of security surrounding customers’ data.

ith technology being an integral component of banking operations today, Chief Information Officers constantly have to cope with the difficulties posed by new technologies, along with the ever-present security problems that have come with the computer age.

Security has been flagged as one of the core themes of the narrative network and there is a strong likelihood of it taking a more prominent role in banking stories moving forward.

The data generated for mobile transactions will equate to petabytes in the coming years [16]. According to a McKinsey 2011 report titled “Big data: The next frontier for innovation, competition, and productivity”, it was reported that big data is an emerging phenomenon that is expected to continue evolving. However, security will be the most important issue that will have to be addressed before the full potential of big data can be realized. Banks which tackle this issue most effectively will be poised to reap the full value that big data has to offer.

Although DBS has largely owned the security conversations, other local banks have been quick to reassure their customers with their own set of measures to enhance the security of their customers’ transactions, such as Citibank enhancing its Citi Alerts service to include transaction alerts for ATM withdrawals. [17]. With the rising usage in internet and mobile banking as well the value that industries are witnessing in Big Data, security could become a differentiating factor among the digital services offered by banks in time to come. Banks need to start marketing their security solutions more effectively in order to win existing and potential customers’ confidence when using their digital services.

The clear need for greater data security is evident in the two scandals in media reports last year. DBS and HSBC have learned hard lessons about data security as well as transparency, two themes with which Big Data is closely associated.

DBS an d HSBC Scan dals ATM and card payment security came under the spotlight in early 2012 after some 700 DBS and POSB customers had about S$1 million withdrawn from their accounts by fraudsters. In light of this incident, cutting edge new security tokens designed to combat online banking fraud were subsequently unveiled in mid-2012. [39] HSBC paid US$1.9 billion to settle a money-laundering probe by federal and state authorities in the United States in late 2012. The probe of the bank, Europe’s largest by market value, involved the transfer of billions of dollars on behalf of nations like Iran (which are under international sanctions) and the transfer of money through the U.S. financial system from Mexican drug cartels. [40]

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Data Secu rity an d Data Privacy

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t is worth noting that the technology industry narratives on big data have risen in tandem with fears of data security. As the DBS and HSBC examples illustrate, customer data is another large resource, which banks will continue to generate in greater volume.

Purchase data is useful to advertisers and marketers when building accurate marketing profiles. We’ve seen similar themes emerge for search engines in recent years. Query data and personally identifiable data such as those from social networks are controversial topics in news media.

Again, banking data will generate increasing amounts of data. The issue of how that data is used will come under greater scrutiny.

Ban ks in depth

G lo bally, of respon dents prefer to use i ntern et ban ki n g for si m ple transactions with th ei r ban k.

47%

Ernst & Young Global Consumer Banking Survey 2012 [38]

From a communications standpoint, Privacy is poised to be a major issue in the digital banking narrative for the coming year. [18] It will be important to establish an operational as well as a communications standpoint on this issue in the near future.

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Narratives Concern i ng Ban ks

Ban ks i n depth: Stan dard Chartered Depth o f M edia reports

Banks in this study have been associated with different themes across the media media reports.

Standard Chartered is associated with bankingrelated concepts such as business, internet and online banking.

S

The bulk of Citibank’s media reports has been about growth, strategy, India and China.

HSBC appearing in media for its efforts to leverage digital technologies in order to enhance the experiences of its wealth management clients, positioning the bank in close relation to corporate, private banking and wealth themes.

tandard Chartered, Citibank and HSBC all have mobile solutions and application products.

However, the lack of product mentions in the narrative map, regardless of whether it is Breeze or Citi-Mobile, implies that these applications are simply not resonating enough with the mainstream media whose target audience is banking customers. Perhaps a possible attribution could be that most of these applications are fairly simplistic and not really differentiated enough to appeal to media outlets.

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The digital narrative network also reveals that the digital banking themes that Standard Chartered is most closely associated with are banking related concepts, such as online and internet banking. Although there have been mentions of Standard Chartered’s mobile banking platform, Breeze, in the media reports analysed, these mentions have not gained much prominence even within Standard Chartered specific coverage sets.

DBS has been approaching the theme of digital technology from a security point of view and hence, its close association with the themes of ATMS, security and access.

Judging from the frequency of words and technology mentions, Standard Chartered trails Citibank in digital banking conversations, especially within Asia-Pacific. On the other hand, Standard Chartered has managed to attain a slightly stronger place in Middle East and African media reports, compared to Citibank and HSBC.

MENTIONS OF B REEZE

Mentions of the Breeze platform only form a subset of industry banking news stories, which in turn explains the absence of Standard Chartered’s digital banking products in its digital narrative. Standard Chartered had unveiled several digital applications and solutions for its customers from different markets, ranging from its Breeze platform in Hong Kong, an online credit card approval solution in India and an Islamic version of its Straight2Bank online banking platform in the Middle East.

Interestingly, while Standard Chartered appears to own the banking themes associated with these products, such as “online” and “credit card”, as seen in the Narrative Clover (Figure 8), the products and solutions themselves are not being promoted or mentioned enough. In a new story by The Asian Banker in 2012 [19], Standard Chartered may need to look towards the social media platforms of the respective countries to help promote the benefits of its digital banking products, especially when it is vying against the local banks from each market.

Figure 7 – Mentions of Breeze

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dig ital solutions are th e futu re of ban ki n g an d stan dard chartered is leadi n g th e way i n maki n g dig ital chan n els an i m portant an d i nteg ral part of th e custom ers ban k sanjeeb chaudhuri, regional head (south asia) & chief marketing officer, consumer banking, standard chartered bank [42]

“

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Ban ks i n depth: Citi ban k

Ban ks i n depth: Citi ban k

F

rank Eliason, the customer service genius Citibank hired from Comcast two years ago, keeps improving and adding new technology layers to the bank’s social media initiatives. [4] The latest innovation: chat tools that work with Twitter and other social media and websites, so that customer conversations can go offline.

A

lthough DBS and Standard Chartered have more news stories attributed to them than Citibank, the digital narrative network and technology mentions suggest that Citibank holds more resonance in digital banking news stories than any of the six banks being studied.

Most tellingly, in a 2012 Financial Times article titled “Global role for Citibank’s Asia consumer head”, Jonathan Larsen, Citibank’s Head of Consumer Banking for Asia Banking, was described as “been given the task of bringing all of Citibank’s retail businesses into the digital age.” [20] The appointment and defined role of Jonathan Larsen strongly implies that Citibank is looking towards adopting the same marketing and operational strategies for its retail and consumer banking divisions.

Asia- Paci fic

The bulk of Citibank’s news stories were derived from Chinese and Indian publications, with Citibank’s launch of its Payment analytics tool and its plan for Facebook banking (following the trail of ICICI bank) being the top stories respectively. This could explain Citibank’s close proximity to the China, India and Asia Pacific nodes in the narrative network map.

One important observation made from Citibank’s media reports is that it is the only bank whose leaders have been quoted making statements about the future trends of digitization, none other than the former Citibank’s CEO, Vikram Pandit. [2]

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We th i n k th ere are th ree b i g tren ds i n th e wo rld. O n e is g lo balisati o n an d th ere th e th em e is em erg i ng market consu m er an d south -to -south g rowth i n parti cu lar. Th e seco n d is u rban isati o n an d that’s an em erg i n g market gam e. Of th e to p 150 citi es th e vast maj o rity are i n em erg i n g markets. An d th i rd is di g itisati o n an d … th e drivers of di g itisati o n are em erg i ng markets as well.

Vikram Pandit, Former Citibank CEO [2]

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“

“

I see th is g rowi n g an d vi deo chat b ecom i n g a b ig deal... I see n ew ways to bu i ld relationsh i ps with th is.

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Citi created, develo ped an d i ntro duced Smart Ban ki n g i n Japan i n 201 0 an d has si n ce ro lled th e co n cept out across Asia...

Ou r goal was to create a g lo bal di g ital ban k ab le to co m pete i n m u lti ple markets arou n d th e wo rld an d to satisfy th e fi nan cial n eeds an d goals o f diverse custo m ers across retai l, web an d m o b i le platfo rms .

Jonathan Larsen, head of consumer banking, Asia Pacific, citibank [30]

frank eliason, senior vice president, social media, citibank [4]

“

“ “

H e (han kwee j uan) is a stron g advocate of i n n ovation an d is i n an excellent position to drive ou r strategy to b e a dig ital ban k observed Jonathan Larsen, head of consumer banking for Asia Pacific, citibank [31]

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Ban ks i n depth: HSBC

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Ban ks i n depth: DBS

ollowing Standard Chartered and Citibank, HSBC has recorded digital conversations in outlets from almost all of the countries being examined.

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ost of the DBS news stories gathered have been based in Singapore outlets. The dominant story running through DBS news stories has been the unauthorized withdrawals made using DBS ATMs. This in turn explains why DBS is seen near the themes such as ATMs, security and access.

Em erg i ng markets Interestingly, HSBC comes across as having a more solid digital footprint in other Asian countries outside the scope of this study, such as in Sri Lanka, Maldives and Vietnam, even winning awards such as “Best Consumer Internet Bank” and “Best Foreign Commercial Bank in Vietnam”.

Based on the media reports gathered, HSBC has also unveiled online trading platforms for financial products as well as wealth management services to individual customers through online banking systems.

With HSBC appearing to leverage digital technology to enhance the experiences of its wealthy clients, it is unsurprising that in the narrative map, HSBC is closely positioned near corporate, private banking and wealth themes.

DBS is also the only bank that kept approaching the theme of digital technology from a security point of view, with many news stories illustrating the steps DBS is undertaking to combat online and internet banking fraud.

As a result, DBS has been positioned near the online and internet banking themes.

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With over 9 0 0 m i lli o n m o b i le su bscri b ers i n I n dia, th ere is i m m ense potential fo r a pro duct li ke IM PS to dramati cally chan g e th e way busi n esses receive fu n ds. N ot o n ly wi ll IM PS ai d wo rki n g capital manag em ent, it wi ll also h elp co rpo rates i n I n dia to m o re easi ly reach potential custo m ers i n rem ote locati o ns across th e cou ntry.

Navin Gupta, head of payments and cash management business, india, HSBC [32]

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H e [Piyush G u pta, DBS CEO] also sai d that wh i le th e M on etary Auth ority of Si n gapore (MAS) an d ban ks are i n constant dialog u e to i m prove dig ital ban ki n g secu rity, th ere is a tradeoff b etween custom er conven i en ce an d custom er secu rity.

The Business Times [31]

Two prominent themes seen throughout DBS news stories have been Technology and Security – which can be attributed to Infocomm Development Authority’s (IDA) initiative to promote NFC in Singapore and the unauthorized ATM withdrawal crisis. Interestingly, DBS’s high focus on security places it in a position to capitalize on the emergence of Big Data as compared to its competitors. [21, 22, 23, 24] However, it would be good to note DBS’s stories on technology and security have also been the result of a “reactive” rather than proactive approach to digital stories.

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TOPIC in depth

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By 2015,th e m o b i le ban ki n g market is expected to b e a

$40 0 bi llion busi n ess Wall Street Journal

[34]

The na rrative network reveals connections between ideas to illustrate major theme g rou ps like the geog ra phic a nd technological sub - na rratives we explored.

We a nalyze these na rratives throug h the lens of Digital, I nternet Ba n king a nd Mobile Ba n king, which a re the three major pivot points for ou r study.

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Topic i n depth: Dig ital

Topic i n depth: Dig ital

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t was earlier ascertained that 2012 saw far more media reports in Tier 2 than Tier 1 publications. Banks are gradually reaching the point whereby elements of Digital are becoming a requisite part of banking narratives. [25] However, most of the digital elements in banking stories have been based on internet or mobile banking themes.

In order to generate more digital stories that extend beyond internet or mobile banking, banks need to start talking more proactively about the digital work that they have been executing in the online space.

None of the banks in this research own the digital banking narrative,

with themes ranging from Twitter, Social Media and Digital lying outside the core narratives. Although the digital themes are not part of the core narrative, further analysis suggests that the idea of digital banking is starting to attain a central theme among banking conversations.

Di g ital across markets

India and Singapore were the top markets mentioned in relation to digital banking.

Figures 9 and 10 illustrate the two ways that the word “Digital” appeared in our media report set. Figure 9 shows the frequency of ‘Digital’s appearance in the same sentence with respect to each market.

The chart below shows both the frequency of mentions and relevance of those mentions denoted by tie-strength (banks appearing in the same sentence as the word Digital). Here Citibank has both the most frequency and relevance to the idea of “Digital”.

The varying sizes of the market names in Figure 10 reveal how often these markets were mentioned alongside “Digital” in our media report set.

Relevan ce an d Frequ en cy o f m enti o n to D i g ital So luti o ns

“

Ou r goal was to create a g lo bal dig ital ban k ab le to co m pete i n m u lti ple markets arou n d th e wo rld an d to satisfy th e fi nan cial n eeds an d goals o f diverse custom ers across retai l, web an d m o b i le platfo rms.

Jonathan Larsen, Citibank, Asia Pacific Consumer Banking Head [33]

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Figure 8 - Relevance and Frequency of Mention to Digital Solutions

d i g ital relevan ce i n markets

INDIA

Si ngapore

u n ited Arab Em i rates

“

Thai lan d

Hong Kong Taiwan

Figure 9 - Digital Relevance in Markets

Figure 10 - Dominant Markets Word Cloud - Digital

27

Topic i n depth: Dig ital

Topic i n depth: I ntern et ban ki ng

Dig ital i n Ch i na

Internet banking has been most closely associated with Standard Chartered and DBS, as compared to the rest of the banks.

Investment in China Presence in China is a priority for most of the major banks in our study. The following quotes illustrate the importance attached to evolving digital solutions in the market as a strategic priority.

The term “Digital” is absent from the core narrative. This can be attributed to the way the theme has been fashioned in the media reports collected, especially within Chinese outlets. For instance, looking at the Chinese media reports, banks in this study have been focusing heavily on the Chinese market over the last few years and also share the similar sentiments on the shift in the online consumer behavior. According to China’s e-Business Research Center, mobile payment transactions are forecast to quadruple next year to 200 billion Yuan (US$31.8 million) [26] and banks have been confronting the opportunities from this shift by developing mobile banking applications for Chinese mainland customers with smart phones.

With the digital theme being so heavily attached to Internet, Online and Mobile banking in the Chinese media reports, it is therefore unsurprising to see Digital falling just outside the core narrative.

“Digital Banking” needs to extend beyond internet banking and mobile applications and be seen as simple and mainstream as possible for the everyday banking consumer. The proliferation of digital banking could also pave the way for “next-gen banking.” This theme has multiple implications, such as the existence of brick-and mortar bank outlets, especially if customers can simply execute basic functions such as opening an account virtually. However, an important factor to consider is personalization, especially in the age of tailored user experiences.

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While internet banking is being viewed as an important part of Standard Chartered’s channel in its clients’ transactions.

“

According to Gowri Mukherjee, Group Head - Digital Marketing, Standard Chartered Bank “Internet banking” accounts for over 50% of all of Standard Chartered’s transactions being conducted through online channels. [49] On the other hand, DBS approached the theme of Internet banking from a security viewpoint, which can be traced back to the Monetary Authority of Singapore’s requirement that all banks must provide transaction signing for high-risk Internet banking transactions from Jan 1 2013. [21]

S h i fts i n custo m er b ehavi o r

…many custo m ers are leapfrogg i ng di rectly fro m b ran ch servi ce to o n li n e ban ki n g or even m ob i le ban ki n g. It’s a u n i qu e ph enom en o n h ere. Th e n u m b er o f m o b i le ban ki n g users g lo bally wi ll h it 1 b i lli o n by 2015, with transacti o ns o f m o re than US$1 tri llio n .

Ericson Chan, chief information officer at Standard Chartered Bank China [26]

The chart below shows both the frequency of mentions and relevance of those mentions denoted by tie-strength (banks appearing in the same sentence as the word Internet Banking). Here Citibank has the most frequency but relevance to the idea of “Internet Banking” is owned by Standard Chartered.

Relevan ce an d Frequ en cy o f m enti o n to I ntern et ban ki n g

“

“

I ntern et ban ki n g is b ri n g i n g e- busi n ess activiti es to th e cou ntry as well as maki n g a li n k with g lo bal busi n ess as th e custom ers n ow prefer an alternative way to do secu red an d speedy transactions The Financial Express (Bangladesh), [33]

Figure 11 - Relevance and Frequency of Mention to Internet Banking

“ 29

Topic i n depth: INTERNET BANKING

Topic i n depth: INTERNET BANKING

i ntern et ban ki n g

Figure 12 – Internet Banking Relevance in Markets

T

i ntern et ban ki n g i n markets In contrast to the Digital relevance in markets, here we see that China and India actually have a similar amount of tie-strength to the idea of ‘internet banking’. Both of these markets had a greater amount of media stories in general. In specific, both markets were called out for new initiatives from various banks.

As we discussed before, Internet Banking has existed in the market for some time. Therefore we can assume that conversations on this topic to be more mature than conversations around the relatively newer conversations of “Digital” and “Mobile Banking”.

he above mentioned maturity is not just a product of time. Internet banking has become synonymous with banks’ services to their customers and banks need to start leveraging on the strength of internet banking to create more awareness about the digital work or campaigns that they are doing. Much of the digital banking media reports gathered in 2012 revolved around internet banking.

Banks need to work towards shifting the narrative from products and platforms such as internet banking and instead focus on the seamless integration and freedom of access for customers to digital banking services.

Ch i na I n dia

Hong Kong

Malaysia

Figure 13 – Dominant Markets Word Cloud – Internet Banking

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Topic i n depth: Mobi le ban ki ng

Topic i n depth: mobi le ban ki ng M o b i le ban ki n g i n markets Singapore’s Relevance To Mobile Banking There are two significant reasons behind the high tie-strength between Singapore and mobile banking. Singapore’s high relevance to mobile banking is due to DBS, which is the leading and largest bank locally; this results in most of its media reports being derived from the red dot. In turn, the bank’s close association with mobile banking signifies that the country will inevitably develop a high tie-strength with the theme as well.

Mobile banking is one of the most talked about themes in digital banking, with most of

the conversations being owned by DBS from the media report set we analysed. The increasing investment and collaborations witnessed in mobile payment technology, especially through NFC, has paved the way for banks to include mobile banking as an important offering for their clients.

The chart below shows both the volume of mentions and relevance of those mentions denoted by tie-strength (banks appearing in the same sentence as the word “Mobile Banking”. Here Citibank has the most frequency but DBS has more relevance to the idea of “Mobile Banking”.

Relevan ce an d Frequ en cy o f m enti o n to m o b i le ban ki n g

Due to the greater emphasis on security in the wake of the ATM fraud crisis, DBS placed a greater emphasis on security. Unsurprisingly plenty of news stories were written about mobile banking, and most were written from a security point of view.

“

Ban ks have trem en dous botto m - li n e i ncentive to develo p a successfu l m ob i le platfo rm, g iven that so m e b ran ch ban ki n g transacti o ns cost 50 ti m es less wh en perfo rm ed th roug h a m o b i le chan n el, Brian Johnston, principal, Deloitte Consulting [34]

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DBS is also one of the seven companies that are participating in IDA’s (Infocomm Development Authority) initiative to promote the widespread adoption of NFC payment mode throughout Singapore. These companies are in collaboration with StarHub Smart Wallet, a service that offers DBS card members a PayPass™ card called One Tap. Staying on NFC technology, DBS Country Manager, Mr. Sim S Lim was even quoted saying that DBS “… regards the mobile platform as an important customer touchpoint”. [27]

“

SINGAPORE I n dia Hong Kong NIGERIA

Figure 15 – Dominant Markets Word Cloud – Mobile Banking Figure 14 - Relevance and Frequency of Mention to Mobile Banking

33

Topic i n depth: mobi le ban ki ng The second contributing factor will be Tagit, a mobile payment solution provider with its headquarters based in Singapore. Tagit has been featured in several Citibank and DBS news stories pertaining to both the Singapore and Indian markets. Tagit has been an influential element in mobile banking conversations mainly because not only were they engaged by Citibank India to launch its mobile banking platform in 2008 but Tagit was also lauded for setting up DBS Singapore’s mobile banking system in a record four months. Tagit’s second office is located in India and as it will be revealed later, Tagit also has a significant presence in mobile conversations concerning India.

As mentioned earlier, Tagit had not only set up the mobile banking system for DBS but it was also engaged by Citibank India in 2008 to help launch its mobile banking platform. Interestingly, Tagit’s early break came when it developed a mobile app for movie lovers in India to purchase movie tickets on their phones. Tagit already had made some inroads in the Indian market in 2005 – 2006 and therefore it is not surprising that its other office is located in India.

Topic i n depth: mobi le ban ki ng

“

Ou r experi ence over th e past 6 -12 m o nths has b een very en cou rag i ng as ou r m ob i le ban ki n g user base has g rown by 350% Sharad Mohan, chief operating officer, global consumer bank, Citibank India [28]

“

Mobile banking has been a shared space for digital conversations across all the banks in this study. The theme of mobile banking has been referenced in different forms - from apps and smartphones to transactions. Mobile banking is slated to gain greater prominence because smartphones bridge geographical obstacles and also offer customers freedom of access to banking facilities. Successful implementations of mobile banking services not only mean that customers need not make their way to a bank’s branch but it also means that banks can open fewer branches and ATM terminals in an emerging market. Hence, this type of accessibility will not just be a core offering from banks but continue to evolve as a pragmatic solution for banks to promote digital banking services for the everyday customers.

No bank researched has a killer mobile banking application that sets the standard for other mobile banking applications in the industry. The emerging narrative for 2013 will look very different from 2012 as more banks compete in this space.

However, banks need to shift their stories from an application-focused perspective to one that goes beyond products and views mobile banking as a core part of the services offered by banks to their respective customers.

M o b i le Ban ki n g

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Perhaps, th ere is a n eed to move th e narrative to also i nclu de a strong focus on tech nology m edia wh ere Stan dard Chartered articu lates its futu ristic vision of th e futu re of mobi le an d ban ki ng.

Figure 16 – Mobile Banking Relevance in Markets

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35

Th e Narrative Clover

Th e Narrative Clover Stan dard chartered

citi ban k TOPICAL

RESONANCE

Conversation th em es

Au di ence i nterest Story sweetspot

i deal storytelli ng m ix

narrative own ersh i p

C

S

hoosing stories that are relevant for the brand, that resonate with the audience and is topical and/or timely will ensure that these stories stick as well as work towards creating brand affinity Storytellers need to evaluate stories not just around brand priorities or audience interest but across the following three factors:

Relevance - Alignment with brand values, orientation and business priorities Resonance - Mapping to audience affinities and customer needs beyond the brand Topical - Stories that are driving interest and conversation across mainstream media and/or new media

bran d prioriti es

RELEVANCE

tandard Chartered, Citibank and DBS were the most frequently mentioned banks in the coverage. These banks were often mentioned in relation to keywords such as mobile banking, services and customer. Figure 18 shows narratives that each bank owns and shares.

While Standard Chartered was highly associated with keywords such as Small Medium Enterprises (SME), credit card and online banking, there was a lack of a strong and coherent theme. It shares global and strategic narratives with Citibank, and mobile and internet banking narratives with DBS. This highlights the importance of developing clear key messages and a clear and focused communication agenda.

Citibank appeared to own digital banking and social media narratives in the coverage, with keywords such as digital, innovation, social and Facebook. While all three banks were associated with mobile banking, DBS was mentioned in relation to more in-depth discussions of the narrative, revolving mainly around hardware.

This is clearly shown in the Venn diagram with DBS owning keywords such as smartphones, NFC, device, applications and security.

dig ital

small m edi u m enterprises (sm e)

g lo bal

i n novation

so luti o ns

credit card

strategy

social m edia

on li n e ban ki ng

mobi le ban ki ng

facebook

services analyti cs

custom er

to ken

atm

i ntern et ban ki n g

access

enterprise

smartphon es

applications

n fc

device secu rity

DBS

Figure 17 - Ideal Storytelling Mix

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Figure 18 - Narrative Ownership

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Strateg ic INSIGHTS & recom m en dations

Strateg ic INSIGHTS & recom m en dations

1

Th e (R) evolution is happen i ng

2

In the past, we had an account relationship with Banks - people walked their paycheck into the bank, wrote a check at the teller window if they wanted to withdraw money, and all of the tellers seemed to take a certain pleasure stamping the passbooks whenever a deposit was made.

Back then, bank branches were more than mere buildings; they anchored the brand within communities and the relationship always took place during business hours.

But all of that changed. Technology changed everything. First the ATM (Automated Teller Machine) in the late 1960s, followed by debit and EFTPOS (Electronic Funds Transfer at Point of Sale) networks that wired the globe and cards once used to withdraw $20 bills could now purchase a pair of shoes in Rome from the comfort of your home or while you’re on the move. Technology has allowed banks to cut costs while giving customers 24-7 access and control over the banking relationship but it’s also seemingly challenging the status quo as digital narratives take centre stage.

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3

4

Digital banking is becoming pervasive across all regions. While some regions are further along, or focus on a particular aspect, in no market is digital banking irrelevant, including the emerging market of Africa.

The growing preference towards digital banking has led global banks to embark on collaborations and partnerships with technology vendors from emerging economies. As a consequence the narratives around technology and its next frontier needs to form a subset of the stories Standard Chartered tells. These stories also need to be directed as much at technology publications as it should be to banking and general media outlets. So shifting the mix to include a focus on technology outlets is important.

DBS has clearly emerged stronger from the unfortunate crisis surrounding fraudulent ATM withdrawals. DBS now owns the smartphone, application and security aspects of “Mobile Banking” as a result of a reactionary media outreach. We still believe there is potential to own this narrative by focusing on issues that are emerging such as that of “Big Data” and its use alongside the umbrella theme of privacy, that is increasingly replacing the old notions of security.

Citibank is heavily associated with digital and social media innovation and this is in no small measure to just their communication teams’ efforts. Technology deployed coupled with serious, consistent and deliberate narratives from Citi’s senior most business leaders continue to laser focus its point of view around “digital banking”.

5 6

7

8

There are sporadic pieces of media reports around the Breeze ecosystem, however Standard Chartered needs to have a clearly defined cohesive media narrative for what digital banking means for it across the Bank.

China, Hong Kong, Singapore and India continue to be key markets for growth and strategy as called out in the narratives around the banks researched. However, it might be useful to highlight ANZ Bank’s approach in the region from the curated media report set. ANZ Bank has been increasingly focusing on emerging markets within the Asian countries such as Vietnam, Thailand, Sri Lanka.

One theme that was consistent across all banks and their narratives is that they all revolved around platforms not the products or services per se. Mobile and internet banking have been mentioned significantly enough to be called out in the digital narrative but this could also be due to the maturity of these concepts already in play across the region.

In addition, most of the core digital themes seen in the media reports have been more corporate than product centric.

Perhaps, the narrative to be mapped for the future needs a more comprehensive link across product and service suites that focus recognition for Digital banking. That is to say, Standard Chartered needs a cohesive narrative cutting across the Bank. This becomes critical as customers will increasingly have expectations across industries rather than just your peer set, as digital becomes more pervasive.

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Strateg ic INSIGHTS & recom m en dations

1 Th e Futu re of Di g italisati o n

Th e Em erg i ng Sweet Spots Some themes for digital banking emerged when analyzing the mainstream media stories, but majority require some fundamental operational changes to ensure narratives are built to stick:

“Digital” is now a mainstream term for business leaders, perhaps the way “ebusiness” was a decade before it. When a vague umbrella term becomes widespread, it can be a recipe for poorly directed strategy, budget bloat and weak results. First and foremost, chief executives and their leadership teams need to crystallise what they mean by “digital” and how it manifests in the broader business strategy underscored by the impact this has on customer experience. Citibank currently leads in terms of being consistent and deliberate when it comes to digital being articulated by its chief executives and regional leaders.

Strateg ic INSIGHTS & recom m en dations b i lity is n o lo n g er co n fi n ed 2 Mtoo co m m u n i cati o n The development of new devices, such as the tablets and smartphones, have reinforced expectations of ubiquitous service availability and with these devices increasingly at the centre of financial decisions — especially those of younger consumers — banks have to get their mobile strategies right. If they don’t, banks risk losing business to more mobile-savvy competitors, as well as tech companies like PayPal, that are developing their own payment and personal finance solutions.

We believe this is a core sub-narrative of the “Future of Digitalisation”. Banks have to shift their narratives across broader media outlets to include technology media.

Opportunity

Opportunity From the narratives it is clear that a number of banks are starting to respond to the new customer demands and definitions of service.

But almost all tend to offer fairly similar and basic services. There is definite opportunity in going beyond current conversations and start to define the “future of digital banking”. Standard Chartered’s senior-most business leaders to be trained and empowered to create a compelling view of what digital banking means for the Bank and the industry at large in their conversations with media. This could possibly cover issues such as to how digital is driving change and neutralising the conversation on loss of personalistion:

Opportu n iti es Fo r THOUGHT LEADERSHI P Is Privacy the new security?

Whether we are in America, Saudi Arabia or in Asia, educating the next generation as they’re coming online young and fast is going to be important, regardless of the societal and cultural environment. This will perhaps be relevant years before it’s relevant to talk about the birds and the bees.

The fact that digital naturally collects information because of the way it works makes it important for Standard Chartered to clarify its stand on privacy as we increasingly move towards a data-driven society. This is of particular relevance to the banking sector. The intent is to own a thought-leading view on clarifying what data Standard Chartered and others in the industry are retaining (or not), and why. This could even be extended to include other stakeholders in the industry and rolled up into an annual survey that Standard Chartered owns and leads.

•

•

•

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Rethinking branch banking – Branches could be “Portals of Knowledge” in the future - teaching customers how to filter out of the noise and focus on building plans that will carry them from their first checking account to family finances after their demise.

Making closer contact - Providing access to experts anytime. How banks should leverage the technology they’ve invested billions to push financial literacy outward, not unlike what Khan Academy does for academic courses.

Personalisation amplified via virtualization – Customer experience can be infinitely more customized through the use of technology for 360° assistance to personalized teller video exchange.

We believe this is the perfect storm for clarifying our point of view on mobile banking’s growth, analyse consumer adoption behaviour and barriers, detail how Standard Chartered is developing the best mobile banking tools (Breeze can be one of the pillars among many), provide commentaries on app pioneers and cutting-edge features that lend meaning to banking and the financial industry, detail how mobile banking could be bottom-up, expanding bank and credit access worldwide. These could include thought-leading narratives such as: •

A well-defined strategy can fall short in execution - Technology can make or break even the best mobile banking strategy. The pressure is on getting something out the door, but too much focus on short-term delivery has meant that some banks have sacrificed the ability to deliver long-term capabilities.

•

A vendor relationship can hinder or enhance a bank’s mobile banking strategy - Banks that are using a vendor that has been recently acquired are burdened with the task of understanding how that acquisition will affect their mobile banking strategy and roadmap - migration to a new platform, dedicated internal resources to support migration activities, or a new vendor altogether.

•

Bottom-up - Unlike past consumer finance technologies first adopted by the wealthy in developed countries (e.g., credit cards), mobile banking has caught on in poorer countries, and could expand bank and credit access worldwide. In emerging markets, many lack basic financial infrastructure and limited access to credit is a huge economic bottleneck.

3 Com plexity Ti ppi n g Poi nt The banking industry is still one of the most complex industries in the world, and the reaction of governments post-crisis have been to significantly increase regulatory oversight, further adding to the complexity of operating in this sector. However, the path forward lies in our ability to demystify this veil of complexity through the use of technology and consequently bridge the trust deficit. The Breeze ecosystem is a case in point but it cannot be the sole point of reference. We need to build proof points across the value chain. The closer the narratives are to the themes of interest to our audience, the larger the resonance and as an extension, closer to the “storytelling sweet spot” referenced in Figure 17.

Opportunity We believe there is opportunity to articulate and elucidate Standard Chartered’s position on these complexity drivers across the banking continuum: •

Strategic and organisational complexity – Agility is a core theme underlying this narrative and needs the senior-most business leaders to articulate how digital is tearing down complexity and aiding nimbleness

•

Process complexities – How is the Bank adapting digital across its value chain, including services and products orientation

•

Interactions with customers – This is perhaps the most important piece of the narrative. How are we ensuring clarity and promoting transparency through the use of digital needs to come through consistently.

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COnclusion

g lossary & m ethodology

I n novate an d i nteg ratE Rapidly evolving technology is undoubtedly creating the possibilities for rich and interactive customer experiences across all channels as we move forward with the merging edge that is digital banking. With customer preferences driving the individual channel mix to suit their lifestyle and circumstances, making platforms more engaging and personalized is only one stage of the journey.

Being able to deliver a seamless experience that meets customers’ demands for service depends on the integration of channels with one another and with the core banking system.

Customers expect to be able to start a transaction in one place and move seamlessly to another to complete it. That expectation requires a single view of the customer across all channels.

Customer information needs to be available in real time wherever, whenever and by whomever it is required.

There is much to be done to innovate and integrate. A first step in meeting these needs requires a new approach to the communications architecture that is focused on context and relevance underscored by customer experience.

g lossary Na rrative

refers to a cluster of grouped keyword nodes denoting linked concepts in a media reports set.

Sub - na rrative

a sub-grouping of nodes, often of a different color, that share a common theme or element and appeared together in related news within the media reports set

Node

a keyword or concept. The size denotes the frequency of mention. The position denotes the relationship to surrounding concepts.

Releva nce

concepts that are related or particularly significant in terms of a selected category or keyword

Tie-strength

The number of times two keywords appear in the same sentence. Used as a measure of relevance or linkage between two concepts.

Frequency

Oppo rtu n iti es Fo r Fu rth er Research This study comprises a coverage set of news stories from January-December 2012 along with selected news stories from January – April 2013 derived from Factiva with a specific set of Boolean search logic (see methodology section below).

In other words this study provided ‘what’ is happening in the last year in terms of digital banking conversations. A further 42

opportunity would be to dive deeper into ‘where’ those conversations took place and ‘who’ to engage with. A Wave II report should focus on increasing both reach and resonance within key social media spheres. This integrated narrative ecosystem can be identified through a landscape audit.

m ethodology

The number of times a word or phrase appears in the media reports set overall

Coverage set

the selected source material from which we base our findings

Search Param eters The media reports set for this narrative study comprised of 258 English online media news stories pertaining to Standard Chartered and six main competitors - Citibank, HSBC, DBS, Coutts, ANZ and Guaranty Trust Bank. Coutts was later dropped from the map due to a lack of relevant media reports.

We searched media reports from the listed regions below for conversations on “digital first”, “Digital and Mobile” and “Digital and social” by brand (technology driving banking) as well as mention of Private Banking.

• •

•

Date range was set at January 1, 2012 to December 31, 2012 Media reports were collected from Factiva and a separate search for Top Tier media reports from search engines. In addition, select top tier media reports was Flagged for inclusion by the client.

Regions: • Africa (Focus on Nigeria) • Asia-Pacific (Representative countries China, Hong Kong, India, Indonesia, Malaysia, Singapore, Taiwan and Thailand) • Middle East (Focus on UAE as a representative market)

Volu me

Often synonymous with frequency, volume refers to the number of news stories 43

references [1] Goldman Sachs, Twitter, 24 May 2012. [Online].

Available: https://twitter.com/GoldmanSachs/ status/205653896327217155. [Accessed 2 May 2013].

[2] P. Davies, “Pandit’s vision of a digitsed, urbanized future for Citi,” Financial Times, May 2012.

[3] Citigroup Inc., Press Release, 8 November 2011.

[Online]. Available: http://www.citigroup.com/citi/ news/2011/111108a.htm. [Accessed 2 May 2012].

[4] “Taking Social Media to a Chattier Level,” Bank Technology News, 1 May 2012.

[5] G. Korporaal, “ANZ eyes Burma in Asian charge, Smith boosts regional plans,” The Australian, 26 March 2012.

[6] “Mobile banking boom expected in Nigeria,” DataMonitor, February 2012.

[7] S. Chakraborty and A. Barman, “I am long on India and China,” Business Standard, 6 7 2012.

[8] “Citibank launches new Payment Analytics tool,” The Asian Bank, 15 May 2012.

[9] S. Hanna, “Standard Chartered hikes up investment in Africa,” African Business Review, 18 October 2012.

[10] R. Amlôt, “Standard Chartered unveils plans for $100 million investment in Africa,” CPI Financial, 10 October 2012.

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[11] “StanChart launches Islamic version of Straight2Bank,” The Asian Banker, 2012.

[21] I. Tham, “DBS to activate new security tokens,” The Straits Times, 7 December 2012.

[31] “Han Kwee Juan named Citibank S’pore CEO,” Business Times Singapore, March 2012.

[41] H. Jhingan, “Digital channels enter banking mainstream,” Express Computer, 5 June 2012.

[12] “Smart Money Banks on Africa [analysis],” COMTEX, 2 April 2012.

[22] T. H. Chen, “DBS rolls out new online security system,” The Business Times, 7 December 2012.

[32] “HSBC India launches Interbank Mobile Payment Service,” The Asian Banker, May 2012.

[13] “Smart banks embrace new tech,” Industry Updates, 23 January 2012.

[23] W. W. Han, “DBS boosts security for online banking,” Today, 7 December 2012.

[33] “Internet banking ‘making link with global business’,” The Financial Express, March 2012.

[42] S. Reporter, “StanChart launches online credit card approval solution in India,” Daily The Pak Banker, 26 June 2012.

[14] “The BankerL The banker awards 2012: Country awards winners,” The Banker, 1 December 2012.

[24] “More security measures for DBS/POSB,” Channel NewsAsia, 14 January 2012.

[34] Deloitte Insights, “Think Outside The Bank,” The Wall Street Journal, 15 February 2013.

[15] “Users of Citibank Bill-Pay App Charged Twice,” The New Yok Times , 20 February 2012.

[25] M. Hickins, “Big Banks Bet on Mobility and SuperPowered ATMs,” The Wall Street Journal , 7 February 2013.

[35] Deloitte, “2012 China Banking Industry Top Ten Trends and Outlook,” Deloitte China Financial Services Industry Center of Excellence, p. 13, 2012.

[26] “The hot trend of mobile banking: forfeiting safety for convenience?,” Shanghai Daily, 15 October 2012.

[36] “Indians using internet prefer e-banking to online shopping,” The India Times, 6 April 2012.

[27] “StarHub unveils ‘SmartWallet’, in collaboration wuth DBS, EZ-Link and MasterCard,” ENP Newswire, 6 August 2012.

[37] Ernst & Young, “Global Consumer Banking Survey 2012,” p. 43, 2012.

[16] B. Staff, “BiztechAfrica,” 11 April 2013. [Online].

Available: http://www.biztechafrica.com/article/ mobile-data-top-90000-petabytes-2017/5756/.

[17] “Singapore: Banks to Boost ATM Security,” The Jakarta Globe, 12 January 2012.

[18] C. Dougherty, “U.S. Amasses Data on 10 Million Consumers as Banks Object,” Bloomberg News, April 2013.

[19] “Asian Bankers need to enhance social media presence to foster closer customer ties,” The Asian Banker, 2012.

[20] P. J. Davies, “Global role for Citi’s Asia consumer head,” Financial Times, 26 June 2012.

[28] S. Singh, “We’ve changed banking the way Google changed search,” The Economic Times, , October 2012.

[29] “United Arab Emirates: CITIBANK UAE launches Facebook Page,” Mena Report, May 2012.

[30] A. Galula, “Citi Wins Global Banking Innovation Award,” BAI-FINACLE, 2012 January.

[38] Ernst & Young, “Global Consumer Banking Survey 2012,” p. 23, 2012.

[39] S. L. Sen, “ATM fraud: Gupta sorry for inconvenience,” The Business Times, 12 1 2012.

[40] A. Viswanatha and B. Wolf, “HSBC to pay $1.9 billion U.S. fine in money-laundering case,” Reuters, 11 12 2011.

CHARTS

Figure 1 – Narrative Network Map Figure 2 – Tiered Media Types Figure 3 – Share of Tiered Media Figure 4 – Core Narrative Figure 5 – Market presence by Bank Figure 6 – Technology Mentions by Bank Figure 7- Mentions of Breeze Figure 8 - Relevance and Frequency of Mention to Digital Solutions Figure 9 - Digital Relevance In Markets Figure 10 - Dominant Markets Word Cloud - Digital Figure 11 - Relevance and Frequency of mention to Internet Banking Figure 12 – Internet Banking relevance in markets Figure 13 – Dominant markets word cloud – Internet Banking Figure 14 - Relevance and Frequency of mention to Mobile Banking Figure 15 – Dominant Markets Word Cloud – Mobile Banking Figure 16 – Mobile Banking Relevance in Markets Figure 17 - Ideal Storytelling Mix Figure 18 - Narrative Ownership

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