Enhancing Customer engagement through internet Are retail banks facing up to the challenges put by web 2.0? Woerden, April 2009

Content The interaction between bank and client has totally been reshaped by the Internet The first Internet wave has boosted efficiency (and convenience) but reduced intimacy The challenge in the second wave is to regain the lost client intimacy Drivers for successful engagement strategies The retail banking engagement approach is twofold: ersonal Finance: Banks need to move from managing funds to managing (realization of) clients’ financial needs Corporate communication: Banks need to regain trust from society en regulators Examples to inspire you Interactivity & wizzards /

The interaction between bank and client has totally been reshaped by the Internet

The first Internet wave has boosted efficiency (and convenience) but reduced intimacy

The challenge in the second wave is to regain the lost client intimacy

Drivers for successful engagement strategies

The retail banking engagement approach is twofold:

ersonal Finance: Banks need to move from managing funds to managing (realization of) clients’ financial needs

Corporate communication: Banks need to regain trust from society en regulators

Examples to inspire you

The interaction between bank and client has totally been reshaped by the Internet Banks have been frontrunners in adopting internet in their primary processes Clients can manage their personal finance through the internet, delivering both efficiency and convenience Interactivity & wizzards / @

Banks have been frontrunners in adopting internet in their primary processes

Clients can manage their personal finance through the internet, delivering both efficiency and convenience

The first Internet wave has boosted efficiency (and convenience) but reduced intimacy There is a downside to efficient internet interaction, clients no longer physically visit their bank This has decreased the level of client intimacy Interactivity & wizzards /

There is a downside to efficient internet interaction, clients no longer physically visit their bank

This has decreased the level of client intimacy

The challenge in the second wave is to regain the lost client intimacy Interactivity & wizzards / Time Revenue & Profitability 1-st generation 2005 2000 1995 2010 Transaction oriented Product focus Cost reduction Efficiency improvement Client self service Optimization of back office processes Standard service to a larger number of people Supported employees 2-nd generation Customer focus Profitable & personalized sales, service & experience concepts Heart-brand Embedded business innovation & entrepreneurship Actively involved employees Multichanneling Relation oriented

Product focus

Cost reduction

Efficiency improvement

Client self service

Optimization of back office processes

Standard service to a larger number of people

Supported employees

Customer focus

Profitable & personalized sales, service & experience concepts

Heart-brand

Embedded business innovation & entrepreneurship

Actively involved employees

Multichanneling

Drivers for successful engagement strategies Interactivity & wizzards / Focus specific topics and target groups Stickiness & usability Facilitate cross channel support (call center, branch office)

Retail bank’s engagement strategies focusses on Personal Finance & ‘personal’ institutional communication Interactivity & wizzards / Personal Finance Corporate communication Topics Investment (policy) Transparent governance Principles & accountability Topics: Product selection Fund selection Monitoring

Topics

Investment (policy)

Transparent governance

Principles & accountability

Topics:

Product selection

Fund selection

Monitoring

Personal Finance: Banks need to move from managing funds to managing (realization of) clients’ financial needs The regulatory frame work is shifting towards ‘best advice’, the bank needs to make sure the client has a suitable arrangement fitting his needs and his personal financial situation Furthermore, engagement increases once saving / investing is linked to a personal (financial) goal Interactivity & wizzards / Right tooling is key to support proper advice For (online) clients wizards can facilitate client self service for basic advice / product selection For financial advisors more sophisticated applications are needed to support personal financial planning

The regulatory frame work is shifting towards ‘best advice’, the bank needs to make sure the client has a suitable arrangement fitting his needs and his personal financial situation

Furthermore, engagement increases once saving / investing is linked to a personal (financial) goal

Right tooling is key to support proper advice

For (online) clients wizards can facilitate client self service for basic advice / product selection

For financial advisors more sophisticated applications are needed to support personal financial planning

Corporate communication: Banks need to regain trust from society en regulators Since the ‘Credit Crunch’ trust in banks has fallen dramatically Regaining trust in banks in crucial for rebuilding a succesfull banking industry Banks need to be crystal clear about their values and business principles and they need to be accountable on the way these values and show themselves in in day to day business Interactivity & wizzards / Internet (forums / communities) can mobilize customers and stakeholders to participate in the reshaping of the financial sector Internet can be used to not only communicate values & business principles, but also to demonstrate the the way the bank is actually living up to the promiss made

Since the ‘Credit Crunch’ trust in banks has fallen dramatically

Regaining trust in banks in crucial for rebuilding a succesfull banking industry

Banks need to be crystal clear about their values and business principles and they need to be accountable on the way these values and show themselves in in day to day business

Internet (forums / communities) can mobilize customers and stakeholders to participate in the reshaping of the financial sector

Internet can be used to not only communicate values & business principles, but also to demonstrate the the way the bank is actually living up to the promiss made

Some examples to inspire you Interactivity & wizzards /

Figlo: facilitating financial planning Interactivity & wizzards / http://www.youtube.com/watch?v=UvOAIntlBnc

SNS Bank: What’s your savingplan? Simple 3 step wizard supports product selection Interactivity & wizzards /

Qash.nl , facilitating peer to peer comparison of spending profile Interactivity & wizzards / Internettool & - community Categorize your spending Compare with your peers Save on spending through special offers Qash interactive service & support Both peer 2 peer & qash 2 customer FAQ’s, tips & trics Get feedback and suggestions for improvements

Internettool & - community

Categorize your spending

Compare with your peers

Save on spending through special offers

Qash interactive service & support

Both peer 2 peer & qash 2 customer

FAQ’s, tips & trics

Get feedback and suggestions for improvements

Wesabe : Peer to Peer advisory for people with debt issue's Interactivity & wizzards / Explanation Wesabe provides an overview of bank accounts of different banks. Wesabe structures the spending and set up savings targets Wesabe’s mission statement is to support consumers on their financial planning and help realize financial targets Wesabe is also a community with peer to peer advisory on debt relief and investment planning Wesabe does not want to compete with traditional banks but wants to be compulsory Wesabe has already 100.000 online participants, experts predict a great future Score The system accesses several banking systems in one time Wesabe does not compare products but spending behavior Real peer-2-peer comparisons Security level is questionable

Wesabe provides an overview of bank accounts of different banks. Wesabe structures the spending and set up savings targets

Wesabe’s mission statement is to support consumers on their financial planning and help realize financial targets

Wesabe is also a community with peer to peer advisory on debt relief and investment planning

Wesabe does not want to compete with traditional banks but wants to be compulsory

Wesabe has already 100.000 online participants, experts predict a great future

The system accesses several banking systems in one time

Wesabe does not compare products but spending behavior

Real peer-2-peer comparisons

Security level is questionable

Umpqua Bank , bank like you live Interactivity & wizzards / http://www.umpquabank.com/

Rabobank ‘cooperative dividend’ engaging local community through supporting local initiatives Interactivity & wizzards /

ING Direct: wethesavers.com Interactivity & wizzards /

More information? Interactivity & wizzards / IG&H Consulting & Interim | market driven, operation wise Bouwe Kuik Senior Manager Financial Services Vijzelmolenlaan 10-18, Postbus 572 3440 AN WOERDEN The Netherlands M +31 (0)6 46278 477 T +31 (0)348 496 300 F +31 (0)348 496 393 I www.igh.nl E [email_address]

Enhancing Customer engagement through internet Are retail banks facing up to the challenges put by web 2.0? Woerden, April 2009