Virtual Banking

Technology is permanently transforming the banking industry, and
digital payments are the key

Electronic Payments, Mobile Commerce, and Virtual Banking: A
Guide to Innovation, Partnering, and Regulation takes a
hands-on approach to competing in the modern banking environment.
Former PayPal Head of Financial Innovation Dan Schatt explores the
reasons behind the massive consumer migration away from traditional
banks, and provides clear, actionable guidance on beating new
banking models at their own game. Digital payment is the hottest
topic in banking today, and is set to define the future of the
industry.

Consumers are rapidly abandoning traditional banks in favor of
institutions that are lower-cost and more consumer-centric. Between
the pace of financial regulatory reform and the cloud computing
revolution, the old banking model is on the fast track to
extinction. Electronic Payments, Mobile Commerce, and Virtual
Banking provides the information banks need to compete in this
new environment, and details the integral implementation actions
that will allow them to thrive. The book discusses real-world
innovations from banks, non-banks, and up and comers, and the heavy
competition from the new outsource bank model. Topics include:

• The changing POS landscape and the need for digital wallet
  partnerships

• Shifting gears to greenfield market opportunities versus
  non-profitable markets

• Digital channel best practices for superior customer
  experience

• When to outsource, and what capabilities to truly own

Case studies including PayPal, Google, Square, Facebook,
Twitter, and more illustrate acceleration of innovation through
banking partnerships, as well as the mechanics behind banking's
biggest, scariest threats. The trick to surviving the paradigm
shift is to embody innovation while providing a superior customer
proposition. Electronic Payments, Mobile Commerce, and Virtual
Banking: A Guide to Innovation, Partnering, and Regulation
provides the inside track on managing the shift and dominating the
new marketplace.

Autorentext

DAN SCHATTis the former Head of Financial Innovations for PayPal, responsible for defining and executing on PayPal's initiatives with the financial services industry. Schatt has also been an advisor to CGAP, part of the World Bank, and an industry analyst with Celent. Prior, he worked in the Financial Institutions Group at Citigroup. He currently serves as Chief Commercial Officer for Stockpile.

Zusammenfassung
Technology is permanently transforming the banking industry, and digital payments are the key Electronic Payments, Mobile Commerce, and Virtual Banking: A Guide to Innovation, Partnering, and Regulation takes a hands-on approach to competing in the modern banking environment. Former PayPal Head of Financial Innovation Dan Schatt explores the reasons behind the massive consumer migration away from traditional banks, and provides clear, actionable guidance on beating new banking models at their own game. Digital payment is the hottest topic in banking today, and is set to define the future of the industry.

Consumers are rapidly abandoning traditional banks in favor of institutions that are lower-cost and more consumer-centric. Between the pace of financial regulatory reform and the cloud computing revolution, the old banking model is on the fast track to extinction. Electronic Payments, Mobile Commerce, and Virtual Banking provides the information banks need to compete in this new environment, and details the integral implementation actions that will allow them to thrive. The book discusses real-world innovations from banks, non-banks, and up and comers, and the heavy competition from the new outsource bank model. Topics include:

• The changing POS landscape and the need for digital wallet partnerships
• Shifting gears to greenfield market opportunities versus non-profitable markets
• Digital channel best practices for superior customer experience
• When to outsource, and what capabilities to truly own
  Case studies including PayPal, Google, Square, Facebook, Twitter, and more illustrate acceleration of innovation through banking partnerships, as well as the mechanics behind banking's biggest, scariest threats. The trick to surviving the paradigm shift is to embody innovation while providing a superior customer proposition. Electronic Payments, Mobile Commerce, and Virtual Banking: A Guide to Innovation, Partnering, and Regulation provides the inside track on managing the shift and dominating the new marketplace.

Inhalt

Foreword xiii

Preface xv

Acknowledgments xix

INTRODUCTION

Innovating through Scarcity 1

The Influence of Cloud on Innovation 3

The Influence of Smartphones 4

Big Data = Big Driver of Innovation 4

Taking a Cue from Retailing 5

The Enemy of My Enemy Is My Friend 6

Reconciling Innovation and Regulation 6

In Search of New Payment Revenue Streams 8

New Skill Sets for a New Era 9

A Road Map for This Book 9

Notes 11

CHAPTER 1 Consumer Empowerment Knocking at the Door 13

How Mobile Is Reshaping Consumer Expectations in Financial and Retail

How Mobile Is Changing Consumer Behavior 15

Mobile Is Blurring the Lines between Digital and Physical 17

Mobile Learnings from PayPal and Square 19

Mobile Commerce through Tokenization 27

The Mobile CameraIt's Not Just for Pictures Anymore! 29

The Mobile MicrophoneOffers and Payments through Soundwaves! 30

NFC's Rebound and the Promise of Host Card Emulation 31

Apple's Passbook 33

The Apps Phenomenon 35

The Uber-ization of Mobile 36

Top of Wallet to Top of Mobile 38

The Case of Braintree and Simple 39

The QR Code 40

What Banks Can Learn from Starbucks 41

Leveling the Playing Field with LevelUp 43

From Mobile Banking to Tablet Banking 45

Mobile Models for the Emerging Markets 47

What's Next? More of the Same 51

Notes 52

CHAPTER 2 Social and Financial Services 55

Maintaining Relationships and Relevance through Social strategies

Digital, Data, and the Future of Banking 58

Social Media Experiences in Banking 60

Gamification 62

Personal Financial Relationship Mapping 63

Capitalizing on Social Banking 65

Moven: Delivering Banking through Social Context 66

Social Banking in Europe and Asia 70

Social Login, Sharing, and Top of Wallet 71

Peer-to-Peer Lending: Blending Social and Banking 73

Beyond the Hype: Partnering for the Future with Peer-to-Peer Lenders 74

Lending Club: A Win-Win for Banks and Their Customers 75

Takeaways for Banks 79

An Investor's Perspective on Social Banking and the Emergence of Bitcoin 80

Message To Banks: Be a Smaller Part of a Bigger Pie 85

Notes 86

CHAPTER 3 Connected Financial Commerce 89

Location-Based Services, Mobile Commerce, and Digital Wallets

The Local Digital Wallet 91

The New Retail Experience 91

Retail 2.0 and Its Effect on Payments 93

Entrepreneurs, Developers, and Financial Services 95

Context Banking: The Next Step 96

Low-Energy Bluetooth, Hardware, and the Future of Commerce 97

iBeacon and EasyPay: The Future of In-Store Payments? 98

PayPal's iBeacon: Proximity and Context 100

Google Glass for Finances 101

In Search of the Digital Wallet 102

Personal Financial Management 103

Coupons 104

Shopping Tools 104

Loyalty and Prepaid 104

Tickets and Passes 105

The Who's Who of Digital Wallets 106

Google 107

LifeLock (formerly Lemon Wallet) 108

PayPal 109

Carriers 110

Retailers 111

Square Wallet 113

What's Next? 113

Notes 114

CHAPTER 4 Innovating with Big Data and Open Platforms 115

Competing in a World of Unlimited Data and Storage

The Rise of Platform Services 121

Application Programming Inter…