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Virtual Banking: A Guide to Innovation and Partnering

Book Description

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.

    Table of Contents

    1. Foreword
    2. Preface
    3. Acknowledgments
    4. Introduction
      1. The Influence of Cloud on Innovation
      2. The Influence of Smartphones
      3. 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
      7. In Search of New Payment Revenue Streams
      8. New Skill Sets for a New Era
      9. A Road Map for This Book
      10. Notes
    5. Chapter 1: Consumer Empowerment Knocking at the Door
      1. How Mobile Is Changing Consumer Behavior
      2. Mobile Is Blurring the Lines between Digital and Physical
      3. The Uber-ization of Mobile
      4. “Top of Wallet” to “Top of Mobile”
      5. The QR Code
      6. What Banks Can Learn from Starbucks
      7. Leveling the Playing Field with LevelUp
      8. From Mobile Banking to Tablet Banking
      9. Mobile Models for the Emerging Markets
      10. What’s Next? More of the Same
      11. Notes
    6. Chapter 2: Social and Financial Services
      1. Digital, Data, and the Future of Banking
      2. Social Media Experiences in Banking
      3. Gamification
      4. Personal Financial Relationship Mapping
      5. Capitalizing on Social Banking
      6. Moven: Delivering Banking through Social Context
      7. Social Banking in Europe and Asia
      8. Social Login, Sharing, and Top of Wallet
      9. Peer-to-Peer Lending: Blending Social and Banking
      10. Beyond the Hype: Partnering for the Future with Peer-to-Peer Lenders
      11. Lending Club: A Win-Win for Banks and Their Customers
      12. An Investor’s Perspective on Social Banking and the Emergence of Bitcoin
      13. Message To Banks: Be a Smaller Part of a Bigger Pie
      14. Notes
    7. Chapter 3: Connected Financial Commerce
      1. The “Local” Digital Wallet
      2. The New Retail Experience
      3. Retail 2.0 and Its Effect on Payments
      4. Entrepreneurs, Developers, and Financial Services
      5. Context Banking: The Next Step
      6. Low-Energy Bluetooth, Hardware, and the Future of Commerce
      7. iBeacon and EasyPay: The Future of In-Store Payments?
      8. PayPal’s iBeacon: Proximity and Context
      9. Google Glass for Finances
      10. In Search of the Digital Wallet
      11. The Who’s Who of Digital Wallets
      12. What’s Next?
      13. Notes
    8. Chapter 4: Innovating with Big Data and Open Platforms
      1. The Rise of Platform Services
      2. Application Programming Interfaces (APIs) for Online and Mobile Commerce
      3. Coping Strategies for Banks
      4. PayPal’s Bold Bet: Unleashing Innovation through an Open Platform
      5. App Stores for Banks: Will It Work?
      6. What’s Next?
      7. Notes
    9. Chapter 5: Math-Based Currencies
      1. Entering the Age of Context
      2. Intro to Math-Based Currencies
      3. Why “Math-Based Currencies”?
      4. History of Digital Currencies
      5. Math-Based Currency Characteristics
      6. Bitcoin: The First MBC
      7. Is it Bitcoin, bitcoin, or Just BTC
      8. How Bitcoin Works
      9. Counterfeiting No More
      10. Completing the Bitcoin Ecosystem
      11. Bitcoin Use Cases in Payments
      12. Ripple: The Second MBC
      13. Moving Ahead with MBCs
      14. Conclusion
    10. Chapter 6: The Smart Pipe
      1. The Prepaid Model
      2. Prepaid Nation: Redefining What a Bank Can Be2
      3. The “Underbanked” and Opportunities for Innovation
      4. MoneyGram: An Example of Expanding A Bank’s Footprint through Partnering
      5. Innovative Ways to Expand Access—PayNearMe
      6. How Banks Are Partnering for Innovation
      7. The CEO-CIO Relationship Driving the Innovation of ING DIRECT Canada6
      8. A Whole New Era7
      9. A Venture Capitalist’s Look at the Future of Banking
      10. Technology as an Enabler and Partner
      11. What the Next 50 Years Might Hold
      12. The Future Bank Bundle: Platform- Relationship-Utility
      13. Notes
    11. About the Author
    12. Index
    13. End User License Agreement