2.0 Challenges For Retail Banks

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Are reatil banks ready capitalize on the opportunites of web 2.0?

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  • Financial capability is hugely important for society more generally. Consumers are increasingly being required to take responsibility for important personal financial decisions. These include how to make provision for their retirement and healthcare, how to budget for day-to-day living, how to save for the future, and what to do if they end up with high levels of debt.
    Website: http://www.absolutewealth.com/category/featured/
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  • Can you send me your presentation?
    Thanks!

    hugo.ghiglia@betc.eurorscg.fr
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  • interesting, i would like to share this article about one of the best reputated women in banking, ana patricia botin http://www.elblogsalmon.com/protagonistas/ana-patricia-botin-premiada
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  • Well done. Insightful. Great chart depicting 'second wave.'
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  • lovely deck... can you send me a copy on jaisiyaram (at) gmail .com
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  • © IG&H Management Consultants B.V. My name is Bouwe Kuik I have prepared a presentation on the topic of interactivity and wizards If you have any questions, I suggest you save them up for the discussion
  • 2.0 Challenges For Retail Banks

    1. 1. Enhancing Customer engagement through internet Are retail banks facing up to the challenges put by web 2.0? Woerden, April 2009
    2. 2. Content <ul><ul><li>The interaction between bank and client has totally been reshaped by the Internet </li></ul></ul><ul><ul><li>The first Internet wave has boosted efficiency (and convenience) but reduced intimacy </li></ul></ul><ul><ul><li>The challenge in the second wave is to regain the lost client intimacy </li></ul></ul><ul><ul><li>Drivers for successful engagement strategies </li></ul></ul><ul><ul><li>The retail banking engagement approach is twofold: </li></ul></ul><ul><ul><ul><li>ersonal Finance: Banks need to move from managing funds to managing (realization of) clients’ financial needs </li></ul></ul></ul><ul><ul><ul><li>Corporate communication: Banks need to regain trust from society en regulators </li></ul></ul></ul><ul><ul><li>Examples to inspire you </li></ul></ul>Interactivity & wizzards /
    3. 3. The interaction between bank and client has totally been reshaped by the Internet <ul><ul><li>Banks have been frontrunners in adopting internet in their primary processes </li></ul></ul><ul><ul><li>Clients can manage their personal finance through the internet, delivering both efficiency and convenience </li></ul></ul>Interactivity & wizzards / @
    4. 4. The first Internet wave has boosted efficiency (and convenience) but reduced intimacy <ul><ul><li>There is a downside to efficient internet interaction, clients no longer physically visit their bank </li></ul></ul><ul><ul><li>This has decreased the level of client intimacy </li></ul></ul>Interactivity & wizzards /
    5. 5. 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 <ul><li>Product focus </li></ul><ul><li>Cost reduction </li></ul><ul><li>Efficiency improvement </li></ul><ul><li>Client self service </li></ul><ul><li>Optimization of back office processes </li></ul><ul><li>Standard service to a larger number of people </li></ul><ul><li>Supported employees </li></ul>2-nd generation <ul><ul><li>Customer focus </li></ul></ul><ul><ul><li>Profitable & personalized sales, service & experience concepts </li></ul></ul><ul><ul><li>Heart-brand </li></ul></ul><ul><ul><li>Embedded business innovation & entrepreneurship </li></ul></ul><ul><ul><li>Actively involved employees </li></ul></ul><ul><ul><li>Multichanneling </li></ul></ul>Relation oriented
    6. 6. Drivers for successful engagement strategies Interactivity & wizzards / Focus specific topics and target groups Stickiness & usability Facilitate cross channel support (call center, branch office)
    7. 7. Retail bank’s engagement strategies focusses on Personal Finance & ‘personal’ institutional communication Interactivity & wizzards / Personal Finance Corporate communication <ul><li>Topics </li></ul><ul><li>Investment (policy) </li></ul><ul><li>Transparent governance </li></ul><ul><li>Principles & accountability </li></ul><ul><li>Topics: </li></ul><ul><li>Product selection </li></ul><ul><li>Fund selection </li></ul><ul><li>Monitoring </li></ul>
    8. 8. Personal Finance: Banks need to move from managing funds to managing (realization of) clients’ financial needs <ul><ul><li>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 </li></ul></ul><ul><ul><li>Furthermore, engagement increases once saving / investing is linked to a personal (financial) goal </li></ul></ul>Interactivity & wizzards / <ul><li>Right tooling is key to support proper advice </li></ul><ul><li>For (online) clients wizards can facilitate client self service for basic advice / product selection </li></ul><ul><li>For financial advisors more sophisticated applications are needed to support personal financial planning </li></ul>
    9. 9. Corporate communication: Banks need to regain trust from society en regulators <ul><ul><li>Since the ‘Credit Crunch’ trust in banks has fallen dramatically </li></ul></ul><ul><ul><li>Regaining trust in banks in crucial for rebuilding a succesfull banking industry </li></ul></ul><ul><ul><li>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 </li></ul></ul>Interactivity & wizzards / <ul><li>Internet (forums / communities) can mobilize customers and stakeholders to participate in the reshaping of the financial sector </li></ul><ul><li>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 </li></ul>
    10. 10. Some examples to inspire you Interactivity & wizzards /
    11. 11. Figlo: facilitating financial planning Interactivity & wizzards / http://www.youtube.com/watch?v=UvOAIntlBnc
    12. 12. SNS Bank: What’s your savingplan? Simple 3 step wizard supports product selection Interactivity & wizzards /
    13. 13. Qash.nl , facilitating peer to peer comparison of spending profile Interactivity & wizzards / <ul><li>Internettool & - community </li></ul><ul><li>Categorize your spending </li></ul><ul><li>Compare with your peers </li></ul><ul><li>Save on spending through special offers </li></ul><ul><li>Qash interactive service & support </li></ul><ul><li>Both peer 2 peer & qash 2 customer </li></ul><ul><li>FAQ’s, tips & trics </li></ul><ul><li>Get feedback and suggestions for improvements </li></ul>
    14. 14. Wesabe : Peer to Peer advisory for people with debt issue's Interactivity & wizzards / Explanation <ul><li>Wesabe provides an overview of bank accounts of different banks. Wesabe structures the spending and set up savings targets </li></ul><ul><li>Wesabe’s mission statement is to support consumers on their financial planning and help realize financial targets </li></ul><ul><li>Wesabe is also a community with peer to peer advisory on debt relief and investment planning </li></ul><ul><li>Wesabe does not want to compete with traditional banks but wants to be compulsory </li></ul><ul><li>Wesabe has already 100.000 online participants, experts predict a great future </li></ul>Score <ul><li>The system accesses several banking systems in one time </li></ul><ul><li>Wesabe does not compare products but spending behavior </li></ul><ul><li>Real peer-2-peer comparisons </li></ul><ul><li>Security level is questionable </li></ul>
    15. 15. Umpqua Bank , bank like you live Interactivity & wizzards / http://www.umpquabank.com/
    16. 16. Rabobank ‘cooperative dividend’ engaging local community through supporting local initiatives Interactivity & wizzards /
    17. 17. ING Direct: wethesavers.com Interactivity & wizzards /
    18. 18. 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]
    19. 19. 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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