Engagement Banking: Building Relationships Through Online and Mobile

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BS&T Webinar - Nov 2012

BS&T Webinar - Nov 2012

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  • 1. Michael J. McEvoy Managing Director +1.617.243.9500 mmcevoy@athpower.com www.athpower.com Engagement Banking: Building Relationships Through Online and Mobile
  • 2. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. If you plan to switch banks within the next 12 months, what are the main reasons? 11% 11% 12% 13% 16% 20% 21% 22% 24% 25% 28% 52% 58% 0% 20% 40% 60% 80% Want a bank with better mobile banking There was a security issue with one or more of my accounts Other Do not trust my current bank Want a bank with better online banking Current bank has made account errors Want a bank that has more ATMs Recommendation by friends/family/colleagues Want a bank with more convenient banking hours Want a bank that has more conveniently located branches Not happy with the customer service at my current bank Another bank has a good offer or promotion to join Want better rates and fees on my accounts Customer Expectations are Rising: Quality of Digital Channel Offerings Matters More Than Ever 2 Source: ath Power 2012 Ideal Banking Study™
  • 3. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 3 Online Banking is Core to the Banking Relationship 16% 22% 33% 38% 41% 44% 45% 48% 51% 52% 53% 53% 56% 57% 61% 63% Interest rate or yield on accounts Level of communication to offer me accounts that fit my needs Service fees Quality of financial advising available to you Number and convenience of the bank’s branch locations and ATMs Wide variety of products and services Convenient banking hours Responsiveness to questions or problems Availability of information about account options Level of knowledge/expertise bank employees exhibit General quality of customer service Wait times at branches Offers the ability to conduct most transactions via the Internet Competence and professionalism of front-line staff Friendliness of Employees Serving as a safe and secure place for your money Satisfaction With Performance Factors of Primary Bank Source: ath Power 2012 Ideal Banking Study™
  • 4. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 49% 37% 30% 27% 30% 26% 10% 17% 24% 14% 16% 20% 0% 25% 50% 75% 100% Mobile Banking 2010 Mobile Banking 2011 Mobile Banking 2012 Do Not Need Would Like To Have Must Have Would Make Ideal Soon, Majority of Customers Will Also See Mobile Banking As Core to Banking Relationship 4 Source: ath Power 2012 Ideal Banking Study™
  • 5. 5% 16% 32% 19% 20% 8% Multiple times a day Daily 2-3 times a week Once a week 1 to 2 times a month Less than once a month How often do you use mobile banking with your bank? 72% Mobile Customers Are More Engaged, Loyal 5© ath Power Consulting Corporation. All Rights Reserved. Source: ath Power 2012 Mobile Banking Study™
  • 6. Why Mobile Banking Adoption and Usage Matter © ath Power Consulting Corporation. All Rights Reserved. 6 More Interaction / More Engaged Customer Engaged Customers are More Loyal Improving Retention and Share of Wallet Retaining the Customer • 3 in 4 mobile banking users surveyed indicate no quantifiable risk of switching their accounts to another bank within the next 2 years Engaging the Customer • 72% of mobile banking customers ‘check-in’ at least once a week Acquiring the Customer • 7 in 10 mobile banking customers place high importance on mobile offering in bank choice Opportunity to Modernize Relationship with Customer • Provide value-added services • Provide services outside of traditional banking • Revenue potential
  • 7. Gap in Mobile User Support Needs Addressing…. Or Customer Experience, Retention Will Suffer 7© ath Power Consulting Corporation. All Rights Reserved. 3% 0% 14% 6% 38% 7% 23% 14% 0% 25% 50% Text interaction with a banking agent Video interaction with a banking agent A tutorial on mobile banking features Banking advice Available Feature Would Like Source: ath Power 2012 Mobile Banking Study™
  • 8. 12% 16% 17% 19% 56% 61% 62% Apply for a mortgage Purchase a CD Apply for an auto or other loan Invest money in stocks or bonds Conduct debit transactions at a store or restaurant Receive special offers, promotions, coupons Store and maintain rewards points Percent Who Would Use Feature Drive Online and Mobile Adoption, Improve Customer Experience By ‘Giving Them What They Want’ 8© ath Power Consulting Corporation. All Rights Reserved. Source: ath Power 2012 Mobile Banking Study™
  • 9. 9© ath Power Consulting Corporation. All Rights Reserved. Best Practice in Mobile: Design ‘Customer Experience’ to Match the Device Bigger Screen: • Detailed information (e.g. PFM) • Viewing statements / documents • Graphical representation Less Mobile than Smartphone: • Less useful for ‘on-the-go’ activities Potential for Small Business Banking: • Less mobile device  less likely to be lost • No alternate primary function (e.g. telephone) Small Screen: • Quick transactions (e.g. checking balances) • Check what’s available for spending – like opening a wallet Device Mobility: • Location based services • P2P Payments • Point-of-sale transactions ‘Always on’: • Alerts (fraud, stock trades, balance alerts, etc.) Smartphone Tablet
  • 10. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 10 Optimizing ‘Customer Experience’ in Digital Channels 5 Key Drivers • Device Portability • Screen Real-Estate • Tap-and-Swipe vs. Point-and-Click • Device Security • Reliability of Service Potential Pitfalls • Taking ‘online banking’ experience and shrinking it to mobile device • Not taking into account how people use different devices and where they use them • Not ensuring consistency / meeting expectations across channels
  • 11. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 11 Text Banking Account Monitoring  Aligning Digital Channel ‘Customer Experience’ with the Device: Example of North American Bank Text Banking Mobile Browser Account Monitoring   Bill Payment  Credit Card Payment  Transfers - In-Bank  ATM / Branch Locator  Customer Service  Text Banking Mobile Browser Mobile App Account Monitoring    Bill Payment   Credit Card Payment   Transfers - In-Bank   ATM / Branch Locator   Customer Service   RDC  P2P Payments  Text Banking Mobile Browser Mobile App Tablet Account Monitoring     Bill Payment    Credit Card Payment    Transfers - In-Bank    ATM / Branch Locator    Customer Service    RDC  P2P Payments  Visualization - Spending, Cash Flow  PFM Tools, Advice  Text Banking Mobile Browser Mobile App Tablet Online Account Monitoring      Bill Payment     Credit Card Payment     Transfers - In-Bank     ATM / Branch Locator     Customer Service     RDC  P2P Payments  Visualization - Spending, Cash Flow  PFM Tools, Advice   Bill Payment - Setup  Transfers - Out-of-Bank  International Transfers  Currency Orders 
  • 12. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 12 Final Thoughts…. Looking Ahead Laptop SmartphoneTablet Device Convergence Touchscreen Laptops  ‘Tabletization’ of websites? – Websites to be reengineered for Touchscreen devices: ‘Point-and-click’ to be replaced by ‘tap-and-swipe’ – Shift away from sequential navigation paradigms to Tablet-like experience – Feedback from Tablet apps. to websites – Touchscreen laptops – Smaller tablets – Smartphones with bigger screens Meanwhile: How to serve up the ‘right’ customer experience???
  • 13. Michael J. McEvoy Managing Director +1.617.243.9500 mmcevoy@athpower.com www.athpower.com Engagement Banking: Building Relationships Through Online and Mobile