EMERGING FINTECH REPORT Banking Application Done by: Khairul Asyraf 155114ZNicholas See 153037EFoo Sze Kye 152619NSandy Tang 155601A Tutor Name: Ms Teo Miow Ting Content Page Task Allocation 3 Introduction/Business Model 4 Background Information 4 Business Model 4 Functions and features of proposed application system 7 Technology employed 7 Mock Screens 10 Conclusion 12 Appendix 13 TaskAllocation Members Task Khairul Asyraf ? Introduction/Business Model ? Technology Employed ? Mock Up Screens Foo Sze Kye ? Functions and Features ? Technology Employed ? System Architecture Design Nicholas See ? Introduction/Business Model ? Functions and Features ? Conclusion Sandy Tang ? Functions and Features ? Technology Employed Introduction/BusinessModelBackground Information Todaya customer has accounts/credit cards across various banks and use them forassorted services (retail purchases, dining, travel and entertainment). Thecustomer has to manage these separately by using various bank apps – to checkbalances for each of these products (bank-wise), make payments etc. Youare to envisage and design one banking app which will consolidate all essentialand commonly used services (including those listed above) across differentbanks for the banking needs of the customer. BusinessModelCustomer SegmentsCustomer jobsThe customer thatfeels annoyed by the constant switching of applications and not having aconcise ledger of their finances. These customers want to maximise theircontrol over their finances and be constantly informed of their financialstatus.Pain Customer feels annoyed that they need to compile all their finances manually.
Customer is distressed as they have to check for mistakes or inconsistencies after compiling their finances Customer feels irritated that they miss out card promotions in retailers because they had no knowledge of it prior Gain Customers will feel safe to use the application due to the security features that has been implemented into this application (2FA and Fingerprint Login) Customers will feel at ease and relax as compiling of their finances would be so much easier Customers will feel proud to use the application as they can enjoy a lot of bank services in the application Value PropositionProducts and services Online bill payment Transfer money from one bank account to another. Allow users to transfer money to someone who has the application using NFC technology Check balances Account Balances, Different Credit Card balances Apply Credit/Debit cards from different banks Allow customers to open bank accounts through the application Check and request for eStatements View transaction history of credit/debit cards Mobile Cheque deposit Location-based optimization to suggest best card to be used Pain relievers By using the application, it will allow the customer to feel relieved as the application compile all of the customer’s finances automatically. The customer feels more relaxed as he/she does not have to check for mistakes or inconsistencies. The entire process is automated and extremely accurate. The customer feels more confident that the purchases they make are of the best value. This is due to the amalgamation of all the card promotions in one application, allowing the customers to discover deals at the touch of their fingertips.
Gain creators Customers can now have multiple services under one application Customers will be more aware of all their accounts statuses as the application allows you to check on all your accounts from the 3 different banks under one application Customers will be notified if there are new offers and deals by the 3 local banks, as the application will notify customers of such deals that would most likely interest the customers based on their personal information. Compiling of finances will be easier for customers now Customers can now deposit their checks without having to go to the bank with the mobile check depositChannels Held events to promote this application Offer free gifts and free incentives Get social influencers to advertise the application. Buy advertisements on social media such as Facebook, Instagram, Twitter, to reach out to a bigger pool of audience so that it can grow a bigger customer base.
Government to promote the convenience of these application as it will help a lot of people as it is hassle free CustomerRelationship 24/7 automated services for customers. Personal assistance given to customers as the application is link to the 3 local banks Using social media platforms to keep customers updated of any events or system maintenance. Teach the customers the benefits that they can gain from using this application so they are aware of itCost Structure Fixed costs (salaries, utilities) Data fees Human Resources Team Marketing Team Research and Development Team IT Team Sales Team Revenue Stream Selling the product to banks Commission/transaction fees Advertisement revenue from advertising banks’ offer and deals Key Partners Local Banks Young Adults to Working Adults Major retailers Key Activities Allows users to have an all in one financial application which allows them to enjoy multiple bank services in a single application. Banks can use this as a platform to promote some of their deals and offers as they can reach out to their audiences who uses this application.
Key Resources Humans (Management team, IT developers and IT programmers) Online platforms Financial institutions SystemArchitecture Design Functionsand features of proposed application system 1. Consolidated accountbalances This feature would allow customers to view all oftheir accounts balances across the various banks on one application instead ofhaving to switch between different banking applications. This would henceprovide more convenience for the customers. 2. Automated bill payment(GIRO)The customer would be able to view all his accountswith the application and choose one of the accounts to be credited from to payfor the bills automatically.3.
Fund TransferCustomer can transfermoney between different bank all in a single page.4. Consolidated credit cardbills Customers can view all their credit cards payments anddetails all on the app without having to switch between the different bankingapplications. 5. Smart credit card paymentsThis function compares all the customer’s credit cardsand allows them to able see which of their credit cards would provide the mostbenefits for them to pay for their expenses (etc. groceries, travelexpenditures).
6. Control credit cardexpendituresCustomers can allocate a budget for each of theircards. If they are reaching their budget, an alert would be sent to notify themthat they are reaching their budget and should think twice before continuingwith the payment 7. Consolidation TransactionCustomeris allowed to retrieve past 6 months transaction, group and sort records basedon different bank accounts.8. Location-based promotionsearchCustomerscan view the best deals with the cards that they own.Technologyemployed1. Restful API (ApplicationProgramming Interface)Topass data and information between banks to the one banking app, every bank willneed to provide API for access to the individual banking services and exchangeof information.
This will allow efficiency and integration between individualbanks and one banking app. For a start, our team will link up and liaise withthe major local banks such as DBS, UOB and OCBC as the bulk of Singaporeans dobanking with these banks. The second phase would be to link up with popularoffshore banks that have a substantial retail customer base in Singapore. Thiswould include Citibank, Standard Chartered Bank and HSBC Bank. 2. Big data analyticsWithtransaction data across different banks, it will allow our bank app to analysethe transactional activity in different banking accounts and credit cards tocreate a detailed persona of the customer and could be later use for bankingmarketing purposes, such as suggestive selling and cross selling of financialproducts.
Forexample, an individual whose bank balance is very high could be interested inplacing his excess funds in a fixed/time deposit. Our app could link up withthe various banks that the customer banks with as scan through which bankoffers the highest interest rates. This could appear as a “pop-up” in the appto prompt the customer if he/she would be interest to take up the fixed/timedeposit. 3.
Text AnalyticsThis is the processof deriving high-quality information from text. High-quality information istypically derived through the devising of patterns and trends through meanssuch as statistical pattern learning, which involves the process of structuringthe input text deriving patterns within the structured data, and finallyevaluation and interpretation of the output. The main goal is essentially toturn text into data for analysis, via application of natural languageprocessing (NLP) and analytical methods.
Thiscould be use for the apps’ predictive text input, similar to Google searches.For example, if a customer of the app periodically sends his parents weekly ormonthly allowance or pay bills monthly, then the app will be able to predictthe text that the customer intends to fill in the free text field during banktransfer and auto populate it, saving some time for customers who use the samefunction periodically. The mobile check deposit feature would also use thistechnology to send the check information to the bank to deposit into thecustomer’s account. 4.
Engaging / hiring an App developer Creating an outstanding and user-friendly mobile banking app will bechallenging and as such, our team will need to work with/ hire an establishedApp developer. In developing the banking app, we must consider the following:Its functionality and visuals (GUI).Functionality – Adding more functionality without compromising on simplicityand clarity is a major challenge. There are several things that customers/users expect from the mobile app, but all these features must be presented in aclear and logical manner with ease of navigation a top priority. Besidesengaging a reputable app designer, our app must be supported by robust IThardware e.
g. powerful servers to prevent mobile banking slow download times,system crashes and system glitches and failures.Visuals – currently, some mobile banking apps out there are not mobile deviceuser-friendly.
Our banking app must avoid the pitfall of letting the useraccess features and services on our mobile devices in the same way as we do onour desktop. When the website is simply poured into a mobile app withoutrealignment or proper design thinking about the type of device the content isbeing slotted into, the function of the app is compromised. With so manydevices available, it is essential that the appearance, as well asfunctionality, of web content is adapted to the relevant browser environment.
For example, and for a start, our app will be created for both Apple iOS systemand for Google Android App. For Android App, which allows for a lot ofcustomization, we will need to work on specific handphone models such asSamsung Galaxy and Note. 5. Security used/ employed To ensure that customer’s data is securely protected, our team will need towork with reputable internet security firms such as Trend Micro or Accenture todevise a security framework for our banking app.The banking app pose the following challenges when it comes to assessingsecurity risk. Three factors include: – The device: The browser, thesystem, phone, and other apps themselves all leave potential security gaps.- The network: Wi-Fi securitymay compromise our banking app. What ifhackers create a rogue access point or a fake SSL (Secure Sockets Layer)certificate?- The data center/ IT hardware-servers: The underlying web server could be vulnerable to attack, as well asthe database that stores vital information.
In addition, our banking app will make use of 2-factor authentication in theform of an SMS with password code (mobile number to be provided by customerfirst) or by using a physical token that will randomly generate a passwordcode, all this in addition to the password protected app. 6. NFC Technology NFC (Near Field Communication) is a tokenized walletincorporating a secure element either embedded in the device or using a hostcard emulation in the cloud. It allows short range communication between twocompatible devices.
This requires at least one transmitting device, and anotherdevice to receive the signal. A wide range of devices can use the NFC standardand will be considered either passive or active.Passive NFC devices include tags, and other smalltransmitters, that can send information to other NFC devices without the needfor a power source of their own. Active devices are able to send and receivedata. It can communicate with each other as well as with passive devices.
Smartphones are by far the most common form of active NFC device. Publictransport card readers and touch payment terminals are also good examples ofthe technology.NFC works on the principle of sending information overradio waves.
Near Field Communication is another standard for wireless datatransitions. This means that devices must adhere to certain specifications inorder to communicate with each other properly. To determine what sort of information will be exchangedbetween devices, the NFC standard currently has three modes of operation.Perhaps the most commonly used in smartphones is the peer-to-peer mode. Thisallows two NFC-enabled devices to exchange various pieces of informationbetween each other.
In this mode both devices switch between active whensending data and then passive when receiving.Read/write mode, on the other hand, is a one-way datatransmission. The active device, possibly your smartphone, links up withanother device in order to read information from it. NFC advert tags use thismode.The final mode of operation is card emulation. The NFCdevice can function as a smart or contactless credit card and make payments ortap into public transport systems.
7. Geofencing Geofencing can be used to track the location of customersand alert them if there are any special offers which they are entitled to basedon the credit cards they have. Geofencing helps customers to make smartdecisions for payment and promotes customer loyalty for both retailers andbanks.MockScreens ConclusionThe extensive anddiverse areas of the banking industry is brimming with age-old methods andprocesses that require fresh ideas of ingenuity and innovation. It is an ethosthat requires constant change to keep up with the demands that this society’sever-increasing sense of self-entitlement makes.
However, this does not meanthat the entire industry has not moved forward in comparison to a decade ago.Adversely, in the face of technological advancements in recent years,improvements have been made in many areas of banking. Mobile banking, forinstance, has greatly reduced the inconvenience and hassle of going to aphysical branch for customers.
In fact, many services can now be accessed witha mobile phone and customers rarely have to go to a physical branch for theirbanking needs. Undeniably, mobilebanking has revolutionized the relationship between banks and the people, aswell as how people perceive banking services. Our team intended to deepen thisrelationship and allow the banks to be more in touch with the customer. We havecreated a data ecosystem, amalgamating all of the customer’s bank accounts togive them a concise and accurate overview of their finances.
The data ecosystemalso collects data of all the cards that the user possesses, allowing the userto know how to get the best deals out of every card. Every piece of applicableand sound cutting-edge technology has been considered and utilized with utmostconsideration for necessity. Thus, we believe that this application willdisrupt the entire banking industry and bring the people closer to the banks,giving a personalized experience for each and every user. AppendixTechnology Employed – Restful Application ProgrammingInterfacehttp://searchmicroservices.techtarget.com/definition/RESTful-API Technology Employed – Big Data Analyticshttps://en.m.wikipedia.org/wiki/Text_mininghttps://www.clarabridge.com/text-analytics/ Technology Employed – Security Used / Employedhttps://www.accenture.com/sg-en/insight-mobile-banking-app-security Technology Employed – NFC Technologyhttps://www.androidauthority.com/what-is-nfc-270730/ Technology Employed – Geofencinghttp://academy.pulsatehq.com/7-things-about-geofencing