Innovation Edge. Simple Bank (English)

JANUARY 2012
simple
The way the world calls our customer centric bank
bank
Winning the customers trust Customer centric, the new banking Top experiences New areas of growth
also in this issue
Trending issues
Innovation Technology trends Edge January 2012 | SIMPLE BANK page 1
Disclaimer: This is confidential information for internal use only. This information must not be disclosed to any third party, must not be used for advertising and/or promotion activities and not be reproduced in whole or part unless authorized in writing by an authorized representative of BBVA group. copyright BBVA 2012
new banking is...

the secret of
T
he world has, is, and will probably continue to struggle through a prolonged period of unparalleled and discontinuous change. In order to address the shift, businesses and institutions have been exploring new business/operating models. Some industries are moving away from traditional product-focused models and beginning to embrace customer-centric models Customer-centric business models blur the line between traditional they want to maintain at any given moment, for any given reason.
Innovation Edge January 2012 | SIMPLE BANK
simple
notions of value propositions, channels, and customer relationships. In the new model, it seems that the Channels are seamlessly integrated and offer an assortment of touch points. The customers, when choosing to purchase and receive products, freely decide what kind of relationship
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Winning the
trust
customers
Shift happens and, in the business world, organizations are looking for new business model innovations to minimize risks and to maximize opportunities. The idea is clear: from pushing products to cultivating customers relationships.
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hift happens and its happening everywhere and all of the time. Some would
Over the last six years, CEOs and leaders worldwide noticed: 2006 The frecuency of change. 2008 The velocity of change. 2010 The complexity of change.
even say that we are in the midst of a Copernican Revolution: 1989 The fall of the Berlin Wall. We are free to choose our future. 1994 Netscape Navigator browser leads the way. We can find out anything that we dont know already. 2002 Blackberry hits the streets. We can get stuff done anytime, anywhere. 2003 MySpace provides our space. We no longer need advice from an expert; we can tap into the wisdom of crowds. In the business world, the shift and its influence are evident as well. Disruptive changes in technologies, customers, competitors, and the environment are wreaking major havoc in the business environment. The last three Global CEO Studies published by IBM shed some light on the CEOs perception of change. Shift in business models In order to tackle the shift, business leaders and organizations have been exploring new business model innovations to minimize risks and to maximize opportunities. As a result of the aforementioned explorations, there seems to a clear transition from product-focused business models to customercentric business models. Shift in Value Proposition Traditionally, or from a product-focused point of view, Customers Relationships and Channels were used to distribute Value Propositions (products) to a given Customer Segment. In customer-centric business models, it seems that the Channels are seamlessly integrated and offer an assortment of touch points. The customers, when choosing to purchase and receive products, freely decide what kind of relationship they want to maintain at any given moment, for any given reason.
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Confidential / Internal use only
The fall of the Berlin Wall

We are free to choose our future November 11, 1989 East Berliners climb onto the Berlin Wall to celebrate the effective end of the citys partition, 31st December 1989.
1986
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Netscape lead the way
1994
Innovation Edge January 2012 | SIMPLE BANK page 6
We can find out anything that we dont know already June 3, 1996 Founder of Netscape James Clark speaks June 3, 1996 in Chicago, IL. Clark, who founded the Fortune 500 computer systems company Silicon Graphics, founded Netscape in April 1994 with Marc Andreessen which currently employs more than 2000 people in 17 countries.
Blackberry hits the streets

We can get stuff done anytime, anywhere March 5, 2004 A traveler walks past an advertisement for Research In Motions BlackBerry handheld e-mail device March 5, 2004 at OHare International Airport in Chicago, Illinois. According to Don Morrison, chief operating officer of Research In Motion, the maker of the BlackBerry, the handheld e-mail devices are used by numerous government officials on Capitol Hill.
2002
MySpace provides our space

We no longer need advice from an expert; we can tap into the wisdom of crowds January 20, 2007 MySpace.com co-creators Tom Anderson (C) with producer Efren Ramirez (L) and Director/Producer Chris Barrett (R) from the film After School poses for a portrait during the 2007 Sundance Film Festival on January 20, 2007 in Park City, Utah.
2003
new banking
Demographic change and technology innovation have left a visible impact on the way that customers interact with their banks. In a world where the customer has taken the control, the banks of the future must help each customer to reach his individual goals.
the
customer centric,
n the past, banks built customers trust by ensuring them stability and solidity by
ers want stability and flexibility; they want banks that can guarantee their security and respond to their individual needs. In a world where the customer has taken control, the
promising to stay the same forever. But the world is changing drastically. Custom-
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banks of the future must become the guide that helps each customer reach her individual goals. In the new world, value has less to do with understanding money, and everything to do with understanding people. Currently in the retail-banking sector, the shift is already underway. Many actors (including traditional banks, de novo banks, and new non-bank entrants) are exploring and/or executing new business models. According to the EFMA report, Transforming Retail Banking to Reflect the New Economic Environment, many banks realize that the customer-centric business models are the future of retail banking: The vision of most banks is to provide their customers with a seamless, fully integrated and uniform experience across all channels. (However) many banks are still years away from achieving this. One of the main difficulties for the incumbent banks is the spaghetti infrastructure of the current operating model; which are separated
into silos, with redundancies in infrastructure and services causing disparate experiences for banking customers. A customer-centric model would require an agile infrastructure, which is designed with the customer as the starting point for products, services, and infrastructure. This approach would provide a consistent and unified customer experience and, in turn, would allow the banks to capitalize growth opportunities, such as cross-selling and upselling. Of course, de novo banks and new entrants have a competitive advantage in that they do not have to worry about digesting the old spaghetti. Given the new reality, the banks and other actors are responding to the customer-centric era of banking. This report offers a closer look at BBVAs unique response to the shift towards customer-centric banking; and also offers some concrete examples of customer-centric retail banking experience of other actors; focusing on Flagships, Mass Market Retail Banking, and Virtual Banking.
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top experiences
world wide
In this inevitable change towards customer centric banking, BBVA is leading. Major changes to the BBVA business model have already begun, with the renewal of the back-end systems platform and continue with several front-end projects. Banks like BNP Paribas, Citibank or HSBC are also addressing the concerns of the customer-centric era of banking, and testing ways of creating a personal rapport with customers. The vision of most banks is to provide their customers with a seamless, fully integrated and uniform experience across all channels. Here is how they do it.
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world 1 wide
top experiences
BBVAs answer
At BBVA, we have been focusing on CCB since 2008; the bank has been hard at work to ensure that the efficiency side (the back-end) of the business model would be ready to offer a customer-centric banking business model. With the goal of offering complete back-end capabilities for the CustomerCentric Bank by 2013, BBVA has mapped out its infrastructure transformation.
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ach new technology delivers value, but the benefit to our customers and to BBVA
needs, BBVA is committed to three principles, which guided in the design of the CCB model: Accessible Distribution. BBVA gives me different ways to do my banking, anywhere, anytime. Convenient, trustworthy, and pervasive, channels give customers a range of ways to fit banking easily into the shape of their lives. Transparent Solutions. BBVA knows what
builds exponentially as the technologies are integrated: Customer Oriented Service and Productivity (Commercial Scenarios; New Core Banking; Digitalization; Operative Processes Redesign). Customized Solution (New Core Banking; Commercial and Risk Intelligence; Private Cloud; MIS Electronic Financial Record). Convenient and Seamless User Interface (Commercial and Risk Intelligence; NICE; Mobile Channel; Public Cloud; New Internet). Collaborative Relationship and Smart Processes (MIS Electronic Financial Record; Collaborative Front End; New Internet; Customer Processes Redesign; New Branch Design) Customer Centric Banking (New Branch Design; Lola (Online Banking Virtual Assistant) For the value side (the front-end) of the business model, in putting customers at the center of experiences that meet their distinctive
I need, and offers solutions that fit my life. In a web-based world dominated by social networks, BBVA has access to enormous amounts of customer dataand a rich opportunity to provide its clients with solutions custom-made to suit their needs. Instead of the expert, whose value comes from knowing more than his customers, the CCB will be the tailor who knows his customers betterand can recommend each of them what fits best. Human Understanding. The people of BBVA really listen to me. I can always get the guidance I need to figure out how to get where I want to go. Instead of selling to their customers, BBVA staff will work closely with themto help clients understand what they really want from their financial futures, and map out the steps theyll need to get there.
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Easy bank
ABIL ATM
Flagship
Kiosk
Walking into de Easy Bank, the customer steps into a welcoming space where he can do what he needs to get done, on his own or with help from staff
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Easy bank
ABIL ATM
Flagship
Kiosk
BBVA ABIL ATM revolutionary banking machine. ABIL is a revolution regarding the traditional self-service. It has a large touch screen, direct access to all common operations and has a surface that allows support personal items to operate with greater comfort.
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Easy bank
ABIL ATM
Flagship
Kiosk
In BBVA Bancomer customers can access specialized advice and receive personal reassurance, at the same time flagships allow BBVA to buid out its brand, as well as offer customers day-to-day banking via the easy bank area of the branch.
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Integrated to customers social networks and activities
Easy bank
ABIL ATM
Flagship
Kiosk
These automated banking centers are avaliable to customers 24 hours a day offering a hasslefree way to do any of the everday transactions they need.
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Based on customer insights and the three design principles, the BBVA CCB model offers: More channels, more granular, and highly functional Consistent, simple, and collaborative universal user interface Real time intelligent processes Highly customized solutions based on customer understanding Open to social networks and the web
bank a chance to create an experience for customers that weaves deeply into the fabric of their ordinary lives. Examples include: getting cash; making deposits, changing address My Life. Interestingly, customer modality changes as they move between these different needs. The same customer who cares most about convenience when shes performing everyday transactions want to spend a great deal of time researching options when planning for the long-term. Examples include: Buying a home, planning for retirement, saving for education
The BBVA Bank of the Future: Customer Centric Bank of 2020

Customer needs
Based on conversations and collaboration with customers, BBVA discovered that there are two forms of interaction with customers. In other words, there are two kinds of financial needs: My Money (Getting Stuff Done) and My Life (Financial Well Being). My Money. Because everyday transactions happen so frequently, they offer the
Touch points
Through a flexible network of virtual and physical touch points, BBVA offers customers a wide range of connections to the services they need, available when they need them, in the ways that best fit their lives. By dividing our current branch model into a more granular set of components, we will create an array of options that enable customers to choose the banking experience that feels most comfortablethereby weaving their relationship with BBVA more fully into our customers daily lives. At the same time, this modular approach en-
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ables us to adapt our presence to the specific needs of different marketsfor example, to focus on low-cost, more automated channels in some regions; and a greater number of flagship stores to serve various needs such as offering specialized advice, reassurance, brand building, marketing, client attraction and capture; as well as offer day-to-day banking via the Easy Bank area of the bank. Anchored to the internet, this flexible, modular array enables us to tailor our offerings to the needs of different customers, while delivering bank services across a wide range of regions effectively and efficiently.
BBVA assistant is available to help. Point of Sale Banking & Pocket Bank. Customers can do basic banking transactions while shopping, using the cashier to perform ATM-like functions; and use their phone to perform routine transactions through local businesses including making deposits and getting cash. These pocket banks extend BBVA reach to more remote areas where customers cannot easily get to a physical branch. ATM. The new BBVA ATMs improve privacy, ease of use, and simplicity. All operations, including PIN entry, are completed on a 19-inch touch screen that displays only information relevant to the transaction at hand. All cash, statements and receipts are handled in and out through a single slot.
Physical Touch Points

Flagship. Customers can access specialized advice and receive personal reassurance; at the same time flagships allow BBVA to continue to build out its Brand, as well as offer customers day-to-day banking via the Easy Bank area of the branch.
Virtual Touch Points

Easy Bank. Walking into the Easy Bank, the customer steps into a welcoming space where he can do what he needs to get done on his own, or with help from staff. Kiosk. These automated banking centers are available to customers 24 hours a day offering a hassle-free way to do any of the everyday transactions they need. Computer & Web Enabled Phone (Internet Banking). By computer and by phone, BBVAs customers get their banking done by connecting through a simple, intuitive, and familiar interface: The Internet Bank of the Future (IBOF). Lola, the online banking virtual assistant avatar, offers human-like guidance whenever customers need it.
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Remote Support. By phone, video conference, or in-person, customers can connect with BBVA specialists for advice on topics ranging from home buying to retirement planning or for help with simpler transactions.
Enhaced value proposition

BBVA has developed a new Value Proposition, based on the following customer insights: Bank the way they want to Simple, easy and transparent relationship Real time resolution Complete control over their finances
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world 2 wide
top experiences
in customer centric
Currently, the branch is the main touch point for retail banking and, as such, banks are continuing to invest in it. In general, the banks are utilizing flagships to increase the value of the brand and/or use them as testing grounds for new customer experience innovations.
Innovative experiences
banking
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Flagships
Barclays, United Kingdom Inspired by retail flagships, such as Apple and Nike, Barclays opened its Piccadilly Circus flagship store at the end of 2008 and announced that they would open 50 more in the near future. According to Barclays, their flagships are more accessible, comfortable, and simpler for customers in an attractive and engaging manner.
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Flagships
BNP Paribas, France Launched in late 2010, BNP Paribas flagship aims to Offer everyone a new experience, a site open to all; reinvent the relationship with clients and prospective customers, through openness and responsiveness, whether informing people directly or helping them to learn; turn the branch into a lab promoting innovation and new features; and position BNP Paribas as a pioneer of innovation.
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Flagships
Citibank, USA Citibank flagships offer hi-touch, specialist advisory services, and smart banking technologies to improve the experience for clients across all channels in core markets. With the collaboration with Eight, Inc (responsible for Apple Stores design), the first prototype store debuted in Singapore in 2008. Over 100 branch-level processes were reengineered. There are even four patents pending.
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Flagships
CommBank, Australia Opened in March 2011, CommBanks flagship aims to offer, seamless service through state-ofthe-art technology and flexible banking solutions, (their) goal is to solve any financial need (the customers) may have, all in one place. Commenwealth Banks flagship offers: an online booking system, interactive touchscreens, NetBank kiosks, iPads and iPod Touches, a welcome concierge staff, experienced banking specialists, and a professional barista caf.
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Flagships
Deutsche Bank, Germany Deutsche Banks Q110 is future orientated, simple, and different. Opened in 2005, the flagship makes bank products more tangible: customers shop for financial products in off-the-shelf boxes, like in a supermarket. Q110 fosters innovation culture at Deutsche Bank by providing a playground for the bank personnel, who are periodically rotated.
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Flagships
HSBC, Hong Kong Opened in 2008, HSBCs flagship model was part of the banks HK$300 million commitment to revamp its retail presence. People are shifting from the more traditional, transactional banking - over the counter - to more sophisticated financial planning, . . . The next step will be finding out how to make use of this good experience to build customer relationship. The efficient handling of basic transactions allows customers to sit down and discuss wealth management issues.
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Flagships
Raiffeisen Bank, Switzerland Designed by world-renowned design firm NAU, Raiffeisens flagship branch on Zurichs Kreuzplatz dissolves traditional barriers between customer and employee, creating a new type of open bank, a space of encounter. Advanced technologies make banking infrastructure largely invisible. ... This lounge feels more like a high-end retail environment than a traditional bank interior. The flagship opened its doors in early 2011.
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Flagships
Skandia, Sweden Opened in early 2011, everything is aimed at creating the right experience for the client. Skandia believes that a committed and involved client is also a more loyal customer and can be a greater act as an ambassador for us. In todays world of consumer power, financial turmoil and demand for transparency even banks must be open and accessible: a place that can make peoples dreams and ideas come through. The flagship opened in early 2011.
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Mass market banking
BRE, Poland (MultiBank) Established in 2001, MultiBank is a combination of traditional banking and modern banking, offering comprehensive services in the Financial Services Centers across the country. MultiBanks strategy is to continue to attract young and sophisticated clients and accompany them as their affluence increases over time remaining their bank partner for life. As part of the banks plan, the IT infrastructure design is streamlined so that BRE can offer multiple services efficiently, by having a market leading open-architecture.
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Mass market banking
CheBanca, Italy Launched in 2008, CheBanca is both a physical and virtual branch. Its an innovative model based on clients emotions, with the goal of providing an ideal banking experience where the primary attributes such as security, transparency, convenience, disinterest (treated as equals), etc. Everything is geared towards the client: physical space, employees, user interfaces, and multi-channel integration; all orientated to satisfy the clients needs or wants.
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Mass market banking
GE Money Bank, Czech Republic GEMB is all about service, providing easily accessible, simple, and beneficial products and services to retail and SME clients. GEMBs strategy creates a we relationship by accompanying clients to do something (task oriented) or to ask something (question oriented).
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Virtual banking
ASB Bank, New Zealand In September 2010 ASB Bank opened its door to the worlds first virtual branch in Facebook. Customers can log on to the service via Facebook and have real-time, secure conversations with ASB staff. The general manager of ASB, Anna Curzon, states, Customers will be able to chat with our dedicated team about any issues - from home loan options, to simple savings tips, or how to access foreign currency for an overseas trip. The Virtual Branch will be able to carry out the same services as our contact centre. Initially, the virtual branch was launched to gauge customer interest.
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Virtual banking
Simple, USA Imagine, for a moment, a bank that doesnt suck. A bank that doesnt gouge you with fees. A bank that doesnt treat you like crap. A bank that cares about design, but gets out of your way. A bank thats building a platform for the future of personal finance. According to Simple, while your money is FDIC-insured and held with our bank partner, we provide the tools and customer support you need to manage, understand, and automate your everyday spending and saving.
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Virtual banking
Bobber Interactive, USA Winner of FinovateSpring 2010 Best of Show award, Bobber provides young adults an innovative FDICinsured payment and savings platform that combines social media and game psychology to drive user acquisition, engagement and loyalty. The company is targeting the 30 million Gen Y consumers. Bobber will also drive optin lead generation for financial institutions. As of December 2011, Bobber Interactive is in Beta (invite only).
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Virtual banking
SmartyPig, USA Opened in 2008, SmartyPig was the first online banking application that combines Web 2.0 with social networking. SmartyPig allows customers to open goal-based savings accounts, earn a competitive interest rate, invite their friends and family members to help them reach their goals, and then get the most money for their money through cash incentive and smart spending programs. SmartyPig has been deemed Bank 2.0 by leading American financial technology opinion makers for being the only true banking application that is social.
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banks
Have you ever changed your main bank?
growth for
the new areas of
36% 7%
yes planning
57%
no
By 2020, most of the consumers will demand retail banking products and services specifically designed to meet or exceed their needs or desires (such as mobility, social, simplicity, transparency, etc.). The customer-centric banking experience may help the banks to explore new opportunities. Many financial institutions are trying to move towards it. Some are doing it in different ways, but, are they effective?
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US population by generation
Percent change 2010-2020 -16%
Percent change 2010-2020 -2%
2020
32%
29%
37%
2015
33%
37%
30%
2010
34%
45%
21%
GEN X
BOOMERS
GEN Y
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Percent change 2010-2020 +16%
he shift towards customer-centric banking is manifesting itself in different
forms and flavors. The retail banks, both traditional and de novo types, seem to have a preference for physical touch points, while the new entrants prefer virtual touch points, particularly mobile and internet. Many banks and other financial institutions are trying to move towards a customer-centric banking experience. Some are doing it by offering eye-popping flagships; others are offering simpler yet effective mass retail banking experience. Are they effective? As an analyst from Jack Morton summarizes, But is the physical remodeling of a bank branch to emulate an Apple Store, or the addition of more financial advisers to a banks staff, really going to be enough to adequately redefine the customer experience at a bank branch? Or are these simply nothing more than stopgap measures and speed bumps along the way to branch obsolescence? As for virtual banking, there are also some major changes as well; customers can access comprehensive banking services 24 hours, 7 days a week, and 365 days of the year. Though virtual banking offers accessibility to customers, it also invites competition; as they are only one click away. It seems that a radical change in paradigm is underway.
Demographic change and technology innovation have left a visible impact on the way that customers interact with their banks. In a world where the customers has taken the control, the banks of the future must help each customer to reach his individual goals.
Reiterating the finding from EFMAs Retail Financial Services Strategic Insights and Best Practices, The vision of most banks is to provide their customers with a seamless, fully integrated and uniform experience across all channels. (However) many banks are still years away from achieving this.
Opportunities for Customer-Centric Banks

The customer-centric bank branches may help the banks explore new areas of growth.
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The flagships or the mass-market retail branches can be living labs; a fertile testing ground to explore new ways to doing business, helping banks continue to develop and deliver products that delight and wow the customers. Also, the physical branches can increase brand awareness and equity by offering tangible and real-world experiences of banking to customers. Also, many pundits have talked about the changing of the guards: the decline of the boomers and the rise of Generation Y, with Gen X going where the majority goes. In regards to retail banking, a study conducted Ciscos Internet Business Solutions Group (IBSG) in February 2010, suggests that by offering value propositions that satisfies the banking needs of younger customers (Gen Y or Millennials), the banks may capture around 5 to 10 percent of additional growth by increasing the cross-selling ratios, offering targeted value propositions, and increasing customer acquisition. Gen Y is going to be the biggest customer segment for retail banks by 2020 and they will demand retail banking products and services specifically designed to meet or exceed their needs or desires (such as mobility, social, simplicity, transparency, etc.). Banks must correctly manage a smooth
transition from a traditional Boomer orientated business of today to a Gen Y oriented business of the future to ensure the survivability or sustainability of the retail business by designing, developing, and executing a sophisticated Customer-Centric banking model.
Potential Bumps in the road

As previously mentioned, retail banking providers must make a smooth and (hopefully) profitable transition from 2011 to 2020. Banking providers must correctly manage the complete life cycle of the customers; but must do so for three distinct generations and all at once! Who said it would be easy? As one member of EFMA succinctly expressed, instead of looking at the branch of the future, banks should be looking at the future of the branches. If the changing of the guards wasnt complex enough, new technologies will continue to wreak havoc on some banking providers, especially the traditional banks; as new technologies and applications (such as mobile, social, cloud, and who knows what else) will force the banks to react to consumers expectation. At the same time, the new technologies will provide pick and shovels to both current and new competitors, making it more difficult to strike gold.
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In depth
A list of links to other useful tools and resources that you may find useful as a supplement to the information offered on the Simple Bank report.
Books & publications

Business Model Generation framework. Alex Osterwalder, 2009 IBM | 2010 Chief Executive Officer Study Booz Allen Hamilton | The Customer Centric Organization. 2004 Ernst & Young | A new era of customer expectation: Global Consumer Banking Survey 2011 PricewaterhouseCoopers | Getting to Know You: Building a Customer-Centric Business Model for Retail Banks. 2011 Brett King, Bank 2.0 How customer behaviour and technology will change the future of financial services True Virtual Banking Has Arrived. Online Banking Report, 198 (October 2011)
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In depth
On the web
Barclays pilots Microsoft Surface in new flagship concept branch Is It a Branch? Or a Store? Its Deutsche Banks Q110 Branch experience for GE Money bank Flagship sets sail Raiffeisen Bank Zurich by NAU
Banking future vision

Citi - Japan Flagship Branch Prototype Commonwealth Bank - Vision for 2013, were improving customer service BBVA The Bank of the Future CScout Trend: Q110 in Second Life Crea International projected and developed the new concept for CheBanca! Bobber Interactive, Winner of FinovateSpring 2010 What is Smartypig?
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Summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Technology trends
In the following section, we outline the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
also in this issue
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Trending issues
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Core banking platform

Internet irruption causes so much data in the world and its support is very expensive. There are some trends searching new ways of save money and energy.
Crowd finance
Digital Marketing of brands use all forms of digital advertising channels A process where small amounts are money raised for a definite purpose, Crowd finance sources funds collectively from individuals. In other words, the money comes from a wide range of individuals and not from a single entity. Read more about it here.
New formats
Based on design principles focused on customer insights, New formats offers retail banking customers more channels which are more granular and highly functional; a consistent, simple, and collaborative universal user interface; real-time intelligent processes; highly personalized solutions; and is open to social networks and the web.
App ecosystem
Nomadic uses of information are driving a new plethora of applications and a wealthy market.
Mobile banking
Banking industry is changing its appearance to the customer to make their transactions easier. Relevant news about mobile banking platforms (which enable customers to access financial services, such as transfers, bill payments, balance information and investment options) can be found here.
New Gizmo era

There are new amazing devices that will make us wiser and healthier.
New banking concepts

Banks around the world continuously explore new approaches to strengthen customer relationships, both in the virtual and the physical worlds; including Virtual assistants, natural language search tools, new marketing tools, different segmentation (children, gen Y,) etc. This section will cover news along these lines.
Enterprise 2.0
Big companies are using 2.0 tools that makes communications easier beyond email.
Mobile payments
Big actors are launching new mobile payment solutions that will be most important than cash in a nearly future.
Join & enjoy

Gamification has become an important trending issue, and games are not going to be just games anymore. Companies are taking this trend and using it as an essential tool.
Social Media
Social Media are becoming more specialized in different areas and users begin to use them as a new communication channel.
Smart cities + urban mobility

Different companies from different industries are looking for business models that let them be present in the near future.
Digital Marketing
Digital Marketing of brands use all forms of digital advertising channels to reach consumers, including social media, via a wide range of delivery mechanisms such as mobile phones, sms/mms, display / banner ads, etc.
Health
New tools will let us take our health control and manage it in a easier way,
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Trending issues
Core banking platform New formats Mobile banking Enterprise 2.0 Mobile payments Social Media Digital Marketing Crowd finance App ecosystem New Gizmo era New banking concepts Join & enjoy Smart cities + urban mobility Health
Centros de datos que usan chips de telfonos inteligentes

No es ningn secreto que los centros de datos cada vez se enfrentan a mayores exigencias (hay que almacenar en algn sitio todos esos 800 millones de perfiles de Facebook). No es sorprendente que las compaas que operan estos almacenes estn preocupadas por los costes de uso de toda esa energa. En septiembre, Google anunci que sus operaciones globales usaban de forma continua 260 millones de megavatios de potencia, aproximadamente un cuarto de la energa generada por una planta de energa nuclear.
Source: technologyreview | 14 noviembre 2011
Trending issues
Virgin Money: What Making Everyone Better Off Means at the Branch Level
What does making everyone better off mean at the branch level to Virgin Money, which yesterday agreed to acquire Northern Rock from the British government for $1.18 billion? Rather, than describe it, we offer some images of Virgin Moneys current and future branches.
Source: Bank Innovation. November 18, 2011
Trending issues
BBVA y Bankia lanzan el pago con tarjeta sin firma ni pin

BBVA y Bankia han lanzado un nuevo servicio conjunto que permitir al cliente realizar pagos de hasta 20 euros con tarjeta slo con acercarla a un lector y sin necesidad de firmar recibo ni teclear nmero pin, segn anunciaron ambas entidades.
Source: EUROPA PRESS
Mobile banking trends to watch out for in 2012

Mobile banking will continue to grow next year across a multiple fronts. Not only will more banks jump into mobile with optimized sites and application, but financial institutions will also build their existing mobile programs with a variety of new services.
Source: Mobile Comerce daily, December 30, 2011
Trending issues
Google persuades Spanish bank BBVA to use the cloud

The bank would use Google applications like email, calendar, docs, chat, video conferencing and other collaboration tools to achieve a cultural change and get the whole company working together across the 26 countries where BBVA is based.
Source: BBC News, January 11, 2012
Trending issues
El mvil reemplazar al pago en efectivo en 2016, segn PayPal.

En 2016, utilizaremos nuestros telfonos mviles como mtodo de pago de bienes y servicios casi en mayor medida que las compras en efectivo, con cheques o tarjetas. As al menos lo considera PayPal, que ha publicado un informe (Money: The Digital Tipping Point), llevado a cabo por Forrester, segn el cual 45 millones de britnicos utilizan ya un mvil y cerca de la mida de los 550 compradores mviles encuestados (49 por ciento) aseguran que se estn planteando utilizar su terminal para comprar bienes y servicios al menos una vez cada tres meses..
Source: IDG
Adis Google Checkout, hola Google Wallet

Nuevos movimientos de la compaa lder de Internet con los que reorganizar su oferta de servicios online..
Source: Desarrolloweb.com, November 21, 2011
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Trending issues
Las aplicaciones sociales corporativas crecern un 61% al ao hasta 2016

Segn un estudio de Forrester, esta industria generar 6.400 millones de dlares hasta 2016. Los medios sociales no se limitan nicamente a la actividad privada y de ocio, sino que es un paradigma TIC completamente vlido para los entornos profesionales. En ese sentido, el mercado de las aplicaciones sociales para el mundo corporativo crecer a un envidiable ritmo del 61% al ao hasta 2016, ao en que su volumen alcanzar los 6.400 millones de dlares.
Source: IDG
Trending issues
core banking platform New formats Mobile banking Enterprise 2.0 Mobile payments Social Media Digital Marketing Crowd finance App ecosystem New Gizmo era New banking concepts Join & enjoy Smart cities + urban mobility Health
The Brands With the Top Relationship Quality on Facebook

On Facebook, like in life, its not enough for someone to say he loves you. He has to prove it. In Fathom Analytics new Relationship Quality Index, the top-rated brands on Facebook tend to be the ones with the most likes. YouTube (48 million likes), MTV (29 million), Coca-Cola (36 million), Starbucks (26 million) and Disney (29 million) make up the top five. But because of other factors, such as engagement and emotion, those brands dont fall in precise order of fan counts.
Source: IDG
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The crowfunding revolution kickstarts a new economic hope

Inspired by the success of funds like Kickstarter in the US, the crowdfunding revolution in 2011 broke onto the shores of Europe and for a country like Ireland battling to reinvent itself and fight its way out of recession, the business model has achieved tremendous success in just one year.
Source: Silicon Republic. December 30, 2011
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Best iPhone Apps of 2011

For iPhone owners, 2011 brought a flood of new apps, but in many cases they struggled to outshine last years best.
Source: The New York Times, December 21, 2011
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At CES, Expect More Gadgets Telling You to Get Off the Couch
If your resolutions for the new year include health and fitness goals, several new products showcased at the Consumer Electronics Show in January just might help you get there. Two of the 25 TechZones on the showroom floor at the Las Vegas Convention Center will be geared specifically toward digital health, with more than 171 exhibitors showcasing products as part of the Digital Health and Fitness category.
Source: Wall Street Journal Online (All Things), December 30, 2011
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Movenbank: The worlds first cardless bank launches in alpha

With Google Wallet, Square, PayPal and other initiatives emerging in the mobile payments space, it was only a matter of time before a dedicated mobile, cardless bank emerged. Movenbank, dubbed the worlds first everyday cardless bank, launched its Alpha site this weekend. Its an exclusively online, new model of bank that uses social, mobile and gamification technology.
Source: The Next Web Insider, October 2011
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El Louvre usar la Nintendo 3DS como audiogua
El museo del Louvre sustituir progresivamente sus guas tursticas electrnicas por la consola. Para ello dispondr de cinco mil unidades. El museo ha valorado su funcionalidad 3D y la doble pantalla para ofrecer a los visitantes una nueva manera de descubrir las obras que alberga la instalacin. La consola propondr una visita en tres dimensiones y ocho lenguas sin necesidad de emplear gafas para disfrutar del efecto tridimensional. El museo tiene prevista la inversin de un milln de euros para mejorar las aplicaciones mviles, para telfonos y tabletas, del museo, que han sido descargadas tres millones de veces. El uso de la realidad aumentada figura en sus planes.
Source: EL PAS
El fin de los videojuegos

Philip Tan, investigador y director del laboratorio de videojuegos MIT-GAMBIT, cree que su uso cada vez mayor har que los llamemos solo juegos.
Source: Technologyreview. October 25, 2011
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Crean un sistema operativo para controlar las ciudades
Este novedoso software recoge toda la informacin de sensores colocados estratgicamente en las ciudades para saber en todo momento lo que est ocurriendo y dar avisos en caso de que algo no funcione.
Source: The Inquirer, 3 Octubre 2011
La internet de los objetos

Twine es una cajita de sensores programable pensada para amantes del do it yourself, gente con ganas de experimentar y cierta mano para la tecnologa. La gracia del dispositivo es que cuenta con una interfaz de Software muy sencilla. No hace falta saber programacin para conseguir, por ejemplo, que enve un SMS a nuestro telfono cuando algo ocurre.
Source: The Inquirer, 3 Octubre 2011
La recarga inalmbrica para vehculos elctricos ya es una realidad

Aquellos emprendedores digitales que quieren hacerse un hueco en los negocios on line an tienen problemas para poner en marcha un proyecto.
Source: eWeekEurope | 11 noviembre 2011
page 57
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La fiebre de las aplicaciones mdicas mviles en Kenia
Este novedoso software recoge toda la informacin de sensores colocados estratgicamente en las ciudades para saber en todo momento lo que est ocurriendo y dar avisos en caso de que algo no funcione.
Source: TECHNOLOGY REVIEW
Esta caja enva tus datos mdicos directamente a la nube

Qualcomm aspira a integrar los aparatos domsticos de seguimiento sanitario y proporcionar una acceso ms sencillo a los mdicos. Una nueva plataforma de Qualcomm propone una sencilla caja que detecta las seales de aparatos de decenas de fabricantes distintos y los enva mediante una conexin mvil a una base de datos en la nube accesible tanto para el personal sanitario como para los pacientes.
Source: TECHNOLOGY REVIEW
page 58
Technology trends
The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
LTE/4G, enabling high speed networking in your hand

LTE will redefine the office, making it increasingly mobile. From real-time group video conferences to connecting via mobile phone to applications that run in the cloud, employees can work from anywhere, changing the fundamental nature of the work environment.
The latest information available in the month of October related to LTE/4G maintains this technology trend as a priority for BBVA for the medium term time frame. Operators are beginning to take up LTE/4G. Growth projections for handsets with embedded LTE/4G are very bullish. For example, according to In-Stat analyst Chris Kissel, There will be over 154 million LTE subscriptions by 2015, suggesting a CAGR of 79.3% from 2011 subscriber base of 14.9 million. He goes on to say, Not only is the forecast for the number of LTE/4G handsets moving rapidly upward, so, too, is the total number
g
of cellular subscribers, estimated to be 6.5 billion in 2015 globally. Thus far, there are 26 carriers deployments of LTE/4G worldwide. Interestingly, in 2011, 3 carriers will account for 47% of all subscription in 2011: Verizon Wireless, MetroPCS, and AT&T (all in the US). The 3 American carriers will have 7 million of the 14.9 million subscribers worldwide. The demand for LTE/4G will be strongly driven by the mobile video and the cloud, as LTE/4G offers superior speeds (especially while uploading).
page 59 Innovation Edge January 2012 | SIMPLE BANK
Technology trends
IPv6, ready for the internet of everything?

IPv6 is designed to solve problems of IPv4: we are running out of IP addresses and its hampering, among other things, technological progress. There isnt enough IP addresses for all things to be connected. Benefits of IPv6 offers improvement in addressing and routing, security, address translation, administrative workload, and support of mobile devices.
IPv6 is designed to solve problems of IPv4: we are running out of IP addresses and its hampering, among other things, technological progress. There isnt enough IP addresses for all things to be connected. Benefits of IPv6 offers improvement in addressing and routing, security, address translation, administrative workload, and support of mobile devices. Also, IPv6 includes a set of possible migration and translation plans from IPv4. The latest information related to IPv6 keeps this macro trend as a priority for BBVA for the
long term time frame. The survey conducted by Ipswitch, Inc in May 2011 concludes that most companies networks are not yet ready for the transition to IPv6: 67% of corporate networks are not prepared to accommodate the IPv6 protocol and, the majority of Internet networking equipment currently sold supports only IPv4. Despite its immaturity, no one doubts that IPv6 will be the successor to the currently used Internet protocol IPv4. 24 hour tests were successfully taken worldwide on June 8;(3) which
page 60
showed that IPv6 works without problems. A Webzine survey conducted by Network World (IDG Group) in July 2011 shows that in the next 24 months 65% of companies plan to introduce IPv6 for their internal networks, and 70% of IT departments are planning to update their websites to support IPv6. The above data suggest signs of a beginning of the transition from IPv4 to IPv6. How-
ever, the duration of this transitional period (where both protocols coexist) is likely to continue on for several years until it reaches a full implementation of IPv6. An mentionable IPv6 implementation project is being developed by Orange Labs in their Smart Cities Demo.
page 61
BBVA Innovation Edge is the result of a collaborative work done by all the people who are involved in innovation at BBVA Group.
CONTRIBUTORS IN THIS ISSUE
Reyes Bolumar ngela Cobos Iker Chinchetru Antonio Garca Eugenio Garca Miguel ngel Iesta Carmen Lpez Rigoberto Sez Alicia Snchez Marcelo Soria Mara Tena Gustavo Vinacua
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