27 Sep 2018

Banking in Digital Ecosystem

• Value of Total Retail Sales at HK$493 billion in 2014 to HK$446 billion in 2017

Technologies Reshape Retails Pattern

• Hong Kong consumers are shifting towards overseas online platforms

• Goods not delivered via physical retail stores; but from courier trucks or “Pick-up Centres”

• In Tsim Sha Tsui and Causeway, fewer local consumers and high-spending Mainland Visitors (2nd or 3rd tier cities instead of top tier city)

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Shanghai => Cashless Vs Hong Kong => Money Notes

Our Last Hope…

Technology Drives Our Life Changing

Graduated from The Chinese University of Hong Kong, worked in IBM

Established City Telecom in 1992 with 10 talents & start-up capital less than US$300,000, to provide alternative IDD services with callback technology

Listed in Hong Kong Stock Exchange Main Board in 1997 & NASDAQ in 1999

Built a city-wide optical fibre network, and become Hong Kong’s largest alternative & fastest growing residential broadband service provider up to 1 Gbps

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How HKTVmall Reforms HK Retailing?

Lower Delivery Cost High Rental Cost

Central Warehouse Distributed Stores

200 sq. ft. Pickup Store Thousands sq. ft. Mega/Dept Store

Wide Variety of Choices Limited Choices

Genuine Customers’ Comments Sales Talk

Users’ Choices Merchandiser’s Choices

AI Professional Advice Shop Sales

Fast & Easy to Expand Limited by Shop Location

Full Customer Profile Limited Information (Big data)

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Warehouse Operation

Traditional Retailing Man to Goods

New Retailing Goods to Man

Man Goods

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• For personal or business purposes : • Safe Place for Our Money – With trust from banks &

regulatory bodies

• Investment – Information from Internet is real-time and more transparent

• Loan & Fundraising – cloud funding, P2P financing, credit rating information & control

• Payment – From customers to suppliers, FPS from one record to any record, has it to be records from banks’ central servers?

The Functions of a “Bank”

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Deposit

Spending

Traditional Banking Vs FinTech

Spending

Deposit

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• Benchmarking : among banks or Alibaba?

• Mobile Device-Driven : Always stay inside the ecosystem

• Customer Engagement : Customers use our APPS 4-5 times a week, use IM hundreds time daily – how about your bank apps?

• The changing concept of BANK : API-enabled open banking ecosystem with stronger integration into customers’ digital lives – such as e-commerce, communications & transportation

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Artificial Intelligence

• Accurate & Reliable • Most Informative • Round-the-clock Availability

Customer Behaviour

• Accurate & Reliable • Most Informative • Round-the-clock

Availability

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• Bankers think… • They are helping and supporting business world • They have the resources : Financial & Trust

• However…

• “Bank”may be the victim that needs help in the vigorous development of technology?

• Will they or their functions being replaced by “Ali-Bank”, “WeChat Bank” or “Amazon Bank”?

How you see banks helping you as an “Online Merchant” Vs

How we see HKTVmall helping banks as an “Online Merchant”

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• Someone will be obsoleted soon……

• Pure knowledge transfer –

secondary school teachers

• Driving teachers

• Translators

• Doctors Offering Simple

Consultation

Moving Into Digital Ecosystem

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• If Banks Sell Insurance…

• Why Don’t Sell Travel SIM Card, or Coco-Cola?

Question

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THANK YOU