Five Ideas:
Financial Services
November 2009
Experts discuss how banking 2.0 trends, such as mobile services and social networking, are extending the reach and revenues of the financial services sector. Plus, find out how a new product from Oracle helps banks manage risk.
“In Japan, bank applications are a long, involved process, and bank lines tend to be quite long. Jibun Bank has made it very easy for customers to open a banking account by e-mailing a photograph of their driver's license from their cell phone. They've also pioneered the affinity approach to mobile marketing, which promises ease in sending account transfers to your friends. Personal checks are not used in Japan—people use either cash or account transfers, which can be quite time consuming to set up. With Jibun Bank, some account transfers can be accomplished just by entering your friend's phone number.”—Neil Katkov, judge at the 2009 Asian Banker Summit in Beijing.
“We need to let them try it. Otherwise, they will never experience how easy it is to use. We are advertising to known mobile users, and as we increase the number of users, there will be some word of mouth as well.”—Masahiro Ikedate, chief executive of Jibun Bank’s Systems Unit
“Financial institutions are exposed to a variety of risks like financial risk, economic risk, geopolitical risk and societal risk. Enterprise Risk Management (ERM) is a mechanism to create a holistic view of all the risks that a financial institution is exposed to at the right level of granularity. ERM would help financial institutions gain a better understanding of the various risks they face by capturing the correlations between them. While some risks hedge others, it is essential to capture the correlations between them..”—Maxwell Nicholas and Ravi Varadachari, Principal Consultants, Risk Management and Compliance Practice, Oracle Financial Services Consulting
“[Oracle's stress testing solution] helps banks manage stress testing and capital under stressed conditions, so it's quite a topical product and available immediately to help institutions cope with this important problem.”—
S. Ramakrishnan, CEO of Oracle Reveleus
“The right social media strategy can drive customer acquisition and retention, which has a direct impact on the bottom-line. However, banks could shoot themselves in the foot if try to sell something to its customers. Customers don’t go to social media to buy products or services; instead they go there to look for building relationships.” —NRK Raman, managing director and CEO, Oracle Financial Services Software
