Virtual Banking Delivering the Promise - Tetherfi
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Virtual Banking Delivering the Promise
Background
Traditionally for consumers, engagement with banks has been an inefficient
process as it would generally entail a considerable amount of administrative
work, long queues at the expense of personal time. Coupled with this inconve-
nience, also lies the fact that despite being a contributor to the society for 100's
of years, the penetration of banks and banking activities is still low, with 50% of
Asia remaining unbanked to date.
Small and Medium businesses globally have also not had many successes with
access to banking services resulting in a low engagement rate. A combination of
tight regulation, a limited number of banking licenses, and poor customer
experience have limited the overall penetration and adoption of financial
services.
However, this highly regulated industry is now witnessing the winds of change
driven by the issuance of virtual or digital-only banking licenses. The objective
is to leverage the power of technology to take away all the friction points in
dealing with the banks and, Most Importantly, leveraging the engagement on
digital platforms to expand and address the dire need for banking services in
several sections of society.
02
Virtual banks or banks without branches / limited branches
have existed in several countries earlier in many forms.
What then, is this fuzz about Virtual Banking?
The significance of virtual-only banks can be attributed to the key traits they are exhibiting.
They are approaching the opportunity with a Digital First approach
– By leveraging the power of mobile phones and disruptive technologies
to potentially completely change the way we have known and got used
to banking. They offer increased convenience and more personalized
services by electronic documentation, real-time data, and automated
processes.
Reduced cost to serve and faster break-even – Digital-only banks have “Payment cards issued by virtual banks can
the essential operational advantage of low OPEX driven by the minimal be used without a charge wherever the
to Zero staffing and running expenditures. This OPEX savings get cardholder is in the world, with flat ATM
transferred as a benefit to consumers in terms of higher interest rates fees, and the ability to withdraw cash in the
and lower mortgage or loan rates. Virtual banks are even able to offer local currency. This conveniencealso
no-fee, interest-bearing accounts without minimum balance extends to the ability to check and top up
requirements. the card balance using a mobile app.” –
epayments Blog
Obsession with Customer Experience – Each of these new banks is Financial analysts around the world have
starting their entire business obsessed with how they will deliver unique estimated that at least 10% of the revenue
value to their customers. This obsession is leading them to develop very of the traditional banks will be at risk as a
innovative solutions to address many unmet needs of today and result of the entry of these new virtual
tomorrow. banks.
03
The Growth Opportunity
What is attracting these new banks?
Virtual banks are increasingly offering more focused and personalized services,
which ranges from digital onboarding in minutes to eKYC to agile real-time data
based offers. There are three distinct opportunities we see them addressing
through these advantages/traits:
Unbanked Banks can easily reach all those unbanked without taking set-up cost and provide
customers an innovative way of dealing with the onboarding services. This reach results in
higher and faster new customer acquisition without the associated cost.
Improve Virtual banks are aimed at making business operations more comfortable to run
penetration in by simplifying processes and passing on the benefits of a "physical-less"
underserved infrastructure to its customers. SMBs are the primary beneficiary of this
segments such proposition, where the current reach and adaptability is expected to increase
as SMB with enhanced offerings and services.
Innovate new A branchless banking suits the Millennial's lifestyle where banks are satisfying
lifestyle services customer needs and issues in an innovative and technologically driven manner.
24/7 availability of agent interaction, "In-app" and "one-session" based
transitions, Audio, and video-driven onboarding are some of the simple ways of
doing banking as needed and desired. Added to this digital-first approach is the
fact that customers are becoming more self-reliant and in control of their
interactions, as per their preferences.
Virtual banks also gamify the entire customer experience, and they are looking at
seamlessly embedding banking / financial services into our daily lives, garnering
an opportunity to increase the consumption of financial services by 300% in the
coming decade.
04
State of Virtual Banking
in Asia Pacific
We are still in the early days. The Asia Pacific as a region has started to
open to virtual banking through legislation. Countries do not want to be
left behind in the race to leveraging the potential power of these new
breeds of companies, which has forced the regulators to take a more
aggressive approach to license. Chart 1 shows the latest status of virtual
banking in select countries in the Asia Pacific.
The opening of the market is having a dual impact on the banking
industry. Existing banks are now being pressured to up the ante and take
a more digital-focused approach to compete. They are also looking at
seizing this opportunity to enter new markets as pure-play virtual banks. South Korea
Some of them are also launching their version of digital banks under South Korea's Financial Services
entirely new brands to help communicate the energy and excitement of a Commission (FSC), will resume a
start-up but leveraging their decades of experience as a trustworthy new round of procedures for
financial services company. granting preliminary approval for
digital banks in 2019. There are
currently only two digital banks
in South Korea: Kakao Bank and
K Bank.
India
Singapore's banking giant DBS Bank
launched Digibank in April 2016 Hong Kong
which now has over 1.5 million Hong Kong Monetary
customers with a staff of 60 people Authority (HKMA) has Taiwan
rather than the 400-500 members. announced a total of eight The island's Financial
virtual banking license Supervisory Commission granted
recipients. licenses to three groups in July
'19. One is LINE Financial Taiwan,
led by Japan's app operator LINE
Group, and the second is Next
Singapore Malaysia Commercial Bank, led by Taiwan
Monetary Authority of Singapore Bank Negara Malaysia is telecom operator Chunghwa
(MAS) indicated the grant of five looking at coming out with Telecom and the third is Rakuten
virtual banking licenses, which the requirements for virtual International Commercial Bank,
will include two full digital bank licensing by 2019. led by Taiwanese IBF Financial
banking licenses and three About ten parties have Holdings and Japanese
digital wholesale licenses that expressed interest in setting e-commerce firm Rakuten Inc.
will specifically cater to SMEs up virtual banks in the
and other non-retail segments. country.
Australia
There has been a flurry of activity in the last 12 months with the
emergence of digital-only banks or NEO banks in Australia. Many of
these banks started their operations from mid-2018, and quite a
few are launching in the coming weeks. Forerunners include
Bendigo and Adelaide bank, Xinja, 86400 Backed by Australia's
largest independent payments company – Cuscal, Judo, an SME
focused NEO bank, and Volt.
05Go to Market
Virtual banks approach the market, emphasizing primarily on a digital-first
customer's life cycle management (CLCM) from Acquire to Transact and to
Engage. Their measures of success will be akin to any other application. In-app
services, along with an Omnichannel experience, are a primary pillar of their
Customer Experience strategy. This strategy is a complete contrast to traditional
banks, where less than 20% of them have an entire omnichannel experience,
enabling customers to interact across any channel they opt to use.
Engagement scores of virtual banks
Persona based UI
Never leave the app
Cross sell/Up sell
Gamification possibilities
User based product
recommendations
Key requirements for success
Robust digital
platform 99.999 Modular
Integrates all forms Scalability
reliability architecture
of omnichannel
services
06Customer Journeys in Virtual Banks
Omni Present
• 24X7
• All channels – Voice,
Video, Web, Mobile App,
Digital Onboarding Kiosks, Chat, Social Media
• Video, Audio enabled Messaging
customer interaction and • Channel agnostic
onboarding seamless – self and RM
• E-KYC assisted conversations
• E-Form Filling
High Customer Engagement
• Self Service driven
approach increases
engagement levels
• KPIs based on mobile
engagement scores
• Insights and trends
Everything IN-APP support the gamification
• A mobile first approach of customer engagement
ensures its built around
the app. All services are
provided and delivered
within the app, including
voice calls.
Collaboration
• Integration with Chatbots
• Authentication,
Co-browsing, annotations.
• Post-session surveys
THE OUTCOMES
LOWER COST HIGH PERSONALIZED COMPETITIVE
TO SERVE REACH SERVICES OFFERS
07How Tetherfi can help you to
become a virtual bank
Tetherfi "Redefines Customer Experience" by integrating its in-app customer engagement
platform components with the Tetherfi SDK / API, which allows customers to initiate voice, chat,
and video conversations through branded mobile apps, popular messaging platforms, and
corporate websites. Its innovative modular architecture simplifies the digital transformation
journey for enterprises with agility and cost-efficiency.
The Tetherfi virtual banking solution
Tetherfi
Tetherfi Mobile Multi-Channel
(Audio Video Chat) Virtual Assist
Tetherfi's Mobile Text Audio Powered by Tetherfi's
Video Chat is a mobile-first Interaction Workflow Engine, it's
solution for highly secure Directed Dialogue, and
communication & collaboration NLP-based multi-channel virtual
for new account opening, assist solution provides a
customer onboarding, and eKYC conversational customer care
process using webRTC based experience.
Audio, Video and Chat with
Co-browse solution. The solution Tetherfi
also supports the resolution of VTM / Kiosk
customer problems within the Tetehrfi's Video Teller
app in a single session leveraging Machines/Kiosk enables
Voice, Text, Video channels, as consumers to perform simple
well as self & agent, assisted cash transactions or engage in
capabilities. more profound personalized
banking activities with remote
tellers.
More precisely, Tetherfi enables :
• Self-service with click to call; in-app facility
• eKYC and Online or Virtual new account opening initiatives
• "Branchless operations"- Rapid expansion vis autonomous stores/VTM
• Service beyond business hours – 24x7x365
• Straight through processing via BOTS
• Deflect to Digital strategy – Voice to Chat-based self-service support
• End to end digital onboarding in minutes
• Video enabled facial recognition and identification match with ID
08Global banks have succeeded with
Tetherfi in their digital journey
The world's leading banks with a cumulative 2500 plus call center agents use
Tetherfi Multi-Media Agent Client (TMAC), its flagship Unified Agent Workspace.
Top three banks in Singapore use Tetherfi Multi-Channel Virtual Assist
(powered by Tetherfi Interaction Workflow Engine) for dynamically configuring
their voice call flows and 1 of 3 Bank’s use it for configuring Text based
interaction flows to be deployed via webchat, in-mobile app and Line
messaging platform.
The world's leading bank launched a digital-only bank in India. Instead of
providing regular voice calls for customer service, it offers "Click to Chat"
(powered by Tetherfi Chat solution) from their mobile app for their digital and
mobile-first strategy in India.
A leading regional Bank launched launched its digital & mobile bank in
Thailand to target the growing millennials market segment. They embedded
Tetherfi chat and webRTC based Audio IP for their 1st line of support.
A leading regional bank has launched 25 VTM across the country. For support
from VTM, click to Audio, Video call is powered by Tetherfi Audio, Video & Chat
product.
Tetherfi Digital OCM is used by Retail, Business, and Institutional Banking Units
of Asia's leading banks across multiple countries, including Singapore,
Malaysia, India, Indonesia, Thailand, Philippines, and Hongkong.
09About Tetherfi Tetherfi enables businesses to drive customer & employee happiness by humanising their digital customer experience. Rated as Singapore’s fastest going tech start-up, world’s leading enterprises use Tetherfi’s digital In-App customer experience platform for Multi Experience - DiCE, to meet the expectations of today’s fast-paced and time-starved consumers. Tetherfi’s digital customer experience suite enables businesses to simplify customer journeys through single session contact resolution, seamless transition between virtual & live agents and by digitizing everything sales to service. Tetherfi’s digital employee experience suite enables a secure, seamless work from home experiences for agents and supervisors without compromising on security, compliance or customer experience. Tetherfi has 145 employees spread across its R & D centre - Tetherfi Labs and its other offices spread across Singapore, USA, India and other ASEAN countries. To know about us, write to us at insidesales@tetherfi.com www.tetherfi.com About Twimbit Twimbit is a new-age research and advisory firm that provides objective, independent, and actionable business insights for every business and every career. We aim to help drive exponential impact for our customers by leveraging the power of research. We understand the industry to know that the way research gets produced, personalized and consumed needs to change. We are the change agents to build a fresh and new perspective to research. www.twimbit.com
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