2.0 Challenges For Retail Banks

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
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 / @

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

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

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

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
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
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

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

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

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2.0 Challenges For Retail Banks

by Bouwe Kuik on Apr 03, 2009

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