Financial Services - Cases

2,433 views
2,397 views

Published on

Published in: Economy & Finance, Business
0 Comments
9 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
2,433
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
248
Comments
0
Likes
9
Embeds 0
No embeds

No notes for slide

Financial Services - Cases

  1. 1. Woerden, October 2008 Innovations in Retail Financial Services Remarkable initiatives from around the globe © IG&H Consulting & Interim
  2. 2. Purpose of this document In Financial Services these days a lot of companies struggle to win in severe price competition However a financial institution should develop its business on long lasting and customer value driven business models: price difference isn’t enough An element could be innovation, a financial institution is able to defeat its competitors only if it keeps on surprising its customers with bright innovations In this presentation we would like to bring you eighteen remarkable innovations in Financial Services from all around the globe, hopefully they will inspire you. This presentation is part of broader research performed by IG&H Consulting & Interim We are more than glad to join you in a meeting to discuss the possibilities for your business © IG&H Consulting & Interim, Woerden 2008 Innovations / 2
  3. 3. Online consumers searching for financial services have various characteristics, innovative online tools can serve all Focus on Price 1 Self-directed 2 Validator 3 Avoider 4 Delegator Source: Forrester Focus on Support Focus on Price or Focus on Support? Innovative online services could serve all, for example: Online innovation serves the ‘Delegator’ in making Online consumer profiles vary between specialist advice accessible online, like Mint.com at independence and convenience: page 9 Independent searchers focus on price and do Online innovation serves the ‘Self-directed’ by not want any help or advice in their search for supporting in their independent choice, such as financial products FindABetterBank.com at page 5 Convenience searchers focus on support and Online Innovation serves the ‘Avoider’ in taking depend on advice in their search for financial over their search efforts, like MoneyAisle at page 6 products and services . © IG&H Consulting & Interim, Woerden 2008 Innovations / 3
  4. 4. Contents Lending Advisory Savings Page 10-11 Page 4-8 Page 12-15 Trading Insurance Payments Page 20-22 Page 24-26 Page 17-18 © IG&H Consulting & Interim, Woerden 2008 Innovations / 4
  5. 5. Findabetterbank.com: comparing features and fees of banks just around the corner Score Search is based on customer preferences Transparency in earnings of FindABetterBank.com No consumer ratings experiences, just product characteristics Explanation FindABetterBank.com compares interest, banking fees and banking conditions of several banking facilities FindABetterBank.com uses Google Maps to pinpoint the user to the nearest branch of the best rated bank Unfortunately FindABetterBank.com does not have real mandates, so the consumer has to go the bank to open an account © IG&H Consulting & Interim, Woerden 2008 Innovations / 5
  6. 6. MoneyAisle: auctions your certificate of deposit or High Yield Savings among banks Score A real turnaround in the value chain User does not need to search FDIC guaranteed Doesn’t increase bargaining power Explanation MoneyAisle provides an easy way to high rates on excessive liquidities MoneyAisle auctions the amount of money among a number of banks These auctions should provide the user the highest rate for Certificate of Deposit or High-Yield Savings © IG&H Consulting & Interim, Woerden 2008 Innovations / 6
  7. 7. Boulevard R: a complete financial advice for your future perspectives Score Fixed fee and no extra commissions Makes life planning accessible for great audience High complexity still creates an entrance barrier Relatively expensive for an online service Explanation Boulevard R provides a customized financial advice with advanced web based software which is designed by financial planners Clients can start to put in their financial situation with assets, debts and income. For a fixed fee the client receives customized and up-to-date financial plan Instead of expensive bankers or other advisors paid with high fees the customer receives a complete financial advice for USD 50 © IG&H Consulting & Interim, Woerden 2008 Innovations / 7
  8. 8. Wesabe: Peer to Peer advisory for people with debt issue's 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 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 alo 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 © IG&H Consulting & Interim, Woerden 2008 Innovations / 8
  9. 9. Mint: brings all your finance portfolio in just one overview Score State of the art technology Strong partnerships with financial institutions Provides clear overview Reel peer-2-peer tools Explanation Mint provides customers a web based platform for financial planning Mint categorizes and analyses the consumers’ spending, and actually advices on how to improve financial efficiency Over 5.000 financial institutions are connected to Mint, they provide current account data, savings data, investment results etc. Over 180.000 customers are already using Mint.com © IG&H Consulting & Interim, Woerden 2008 Innovations / 9
  10. 10. Contents Lending Advisory Savings Page 10-11 Page 4-8 Page 12-15 Trading Insurance Payments Page 20-22 Page 24-26 Page 17-18 © IG&H Consulting & Interim, Woerden 2008 Innovations / 10
  11. 11. Keep the Change: makes it possible to save money for people that have difficulties putting money aside Score Easy way of saving, automatically creates savings Low amounts, many transactions and high costs Explanation Bank of America developed Keep the Change accounts for people that have difficulties to save money on a regular basis Every time a consumer buys something the amount will be rounded up and the difference will be transferred in to a savings account Since the start in 2005 already one million accounts are opened © IG&H Consulting & Interim, Woerden 2008 Innovations / 11
  12. 12. SmartyPig: special purpose or target saving together with family or friends Score It is social and goal oriented It is funny! Making deposits cost money Minimum real value added Explanation SmartyPig is saving like 2008: it is fun, easy, social and for a special goal SmartyPig offers an online savings account by West Bank for a special purpose like a journey or a boat Special feature is that family and friends also can make a deposit on this account The concept is already rewarded with several Banking Awards © IG&H Consulting & Interim, Woerden 2008 Innovations / 12
  13. 13. Contents Lending Advisory Savings Page 10-11 Page 4-8 Page 12-15 Trading Insurance Payments Page 20-22 Page 24-26 Page 17-18 © IG&H Consulting & Interim, Woerden 2008 Innovations / 13
  14. 14. GreenNote: helps students get low-cost private student loans from social networks Score Theoretically this could support students Attracts wrong people outside peer group Peer to peer lending is perceived as risky Explanation GreenNote helps students get low-cost private student loans from social networks while lenders get a fair return on the loans they give to students It starts with contacting your network of family and friends, and ends with you reaching your goals © IG&H Consulting & Interim, Woerden 2008 Innovations / 14
  15. 15. SameDayCash: lending platform for money in your current account on the same day Score Fast and Easy Cost model is very transparent It could attract people that already have money problems (social responsibility?!?) Explanation SameDayCash is providing small loans on the same day up to a maximum of 200 pounds SameDayCash is collecting the money just a couple of days later from the user’s debit account, with a maximum period of 30 days Concequences of not paying back could give the user a bad credit score immediately © IG&H Consulting & Interim, Woerden 2008 Innovations / 15
  16. 16. LendingClub: Peer to Peer lending inside established social networks Score Uses established social networks that reduces risk perception Again peer 2 peer, it has not been proven as successful yet Explanation LendingClub Peer to Peer lending inside established social networks LendingClub uses established social networks that should guarantee more save lending and better rates The loan request includes information that helps ensure that loans get funded at the best available rate There is a two-week loan listing period during which the loan can be funded and issued © IG&H Consulting & Interim, Woerden 2008 Innovations / 16
  17. 17. Contents Lending Advisory Savings Page 10-11 Page 4-8 Page 12-15 Trading Insurance Payments Page 20-22 Page 24-26 Page 17-18 © IG&H Consulting & Interim, Woerden 2008 Innovations / 17
  18. 18. Tradeking: sharing trading strategies and showing off your brilliance Score Stimulates consumers’ admire to be the best ± It is just another trading platform Question is if people want to switch just for being in competition Explanation Tradeking provides a stock trading platform The platform facilitates the user to share their strategies and let them learn from other traders Tradeking keeps up the score and let the user show off if they trade well Tradeking also offers an extensive learning center to educate to inexperienced trader © IG&H Consulting & Interim, Woerden 2008 Innovations / 18
  19. 19. Zecco: free stock trading and following star-investors Score Nice add-on for following star- investors ± Again just another trading platform You only get ten free trades Explanation Zecco is in the United States a famous trading platform Zecco provides Free stock trading and learning from star-investors The free trades are capped at just 10 trades with a minimum of $2.500 net equity otherwise $4.50 © IG&H Consulting & Interim, Woerden 2008 Innovations / 19
  20. 20. Contents Lending Advisory Savings Page 10-11 Page 4-8 Page 12-15 Trading Insurance Payments Page 20-22 Page 24-26 Page 17-18 © IG&H Consulting & Interim, Woerden 2008 Innovations / 20
  21. 21. Barclaycard OnePulse: a public transportation, credit card and chip in one card Score Integration of three different card services For everyday use Public transport services are still limited by geographical constraints Explanation Barclaycard OnePulse has three built-in functions, helping you to save time, money and hassle Barclaycard is the only card in the UK to offer public transportation, credit card and chip card in just one card In-built Oyster card for the fastest, smartest and easiest way to travel around London Go cashless with OneTouch, a new and quick way to pay for purchases of £10 and under © IG&H Consulting & Interim, Woerden 2008 Innovations / 21
  22. 22. PräsentCard: client gift card for expanding your client network Score New level in bank- SME relationship, it introduces the bank as a marketing partner No fundamental value for a bank other than a platform for tracking client payment data Explanation Deutsche Bank offers its SME clients a tool that is normally only available for huge retail shops “Present Card” is a gift card that facilitates SME business giving their clients a gift card The “Present Card” is all about increasing client commitment and expending client base © IG&H Consulting & Interim, Woerden 2008 Innovations / 22
  23. 23. Rabo SMS Pay: direct easy pay for small amounts Score A real target group initiative for cross- selling Not really user friendly Will mobile internet take over, what’s the unserved customer need? Explanation It facilitates to pay small amounts directly without having cash In a community that is excluding small cash the SMS-paying service is a good fit in the modern banking features It does appeal young people and Rabobank is likely to cross sell other banking services to non-clients © IG&H Consulting & Interim, Woerden 2008 Innovations / 23
  24. 24. Contents Lending Advisory Savings Page 10-11 Page 4-8 Page 12-15 Trading Insurance Payments Page 20-22 Page 24-26 Page 17-18 © IG&H Consulting & Interim, Woerden 2008 Innovations / 24
  25. 25. Sheilas’ Wheels: creating a social network that has a low risk insurance profile Score A real target group initiative Clever selection of low-risk clients Minimum of extra services Explanation Sheilas’Wheels is a car insurance only available for women The insurance policy provides distinctive features like handbag coverage and female friendly repair With this Esure creates a portfolio with a attractive risk profile © IG&H Consulting & Interim, Woerden 2008 Innovations / 25
  26. 26. Ibuyeco: 100% carbon neutral car insurance Score It services a distinct and life customer need While you drive trees will be planted… But saving the environment while driving a car? It is a bit contradictory! Explanation With this BISL is helping the user to balance out the impact their driving has on the environment Not only will it get the user a good rate, it will make it easy for the user to offset 100% of the vehicle’s annual CO2 emissions © IG&H Consulting & Interim, Woerden 2008 Innovations / 26
  27. 27. Teensurrance: creating a social network that holds a high risk profile Score A real multi-media service Razor-sharp target group tool Typically US service Probably sales will rise if the service is marketed separately Explanation Teensurance, powered by SafecoTeensurance, is a completely new kind of package that gives parents a way to determine how their teen is driving Teensurance provides a range of ways to keep teen drivers safer, including roadside assistance, GPS real-time car tracking and parent-teen discussion resources Introduced to encourage responsible teen driving – and give parents some peace of mind © IG&H Consulting & Interim, Woerden 2008 Innovations / 27
  28. 28. IG&H Consulting & Interim market driven, operation wise IG&H Consulting & Interim is an independent company in consultancy and interim management with 150 professionals. Our specialism: the financial services sector IG&H has successfully worked on cases like: Lean Change – IG&H is the specialist in Lean for the financial services industry Operating Strategy – realizing challenging turnarounds in operations starts with the right course Strategic Execution – really implementing new strategies Business Development – development of value adding, innovative solutions Sales effectiveness – realizing of breakthroughs in sales effectiveness, for example banc assurance or intermediary distribution © IG&H Consulting & Interim, Woerden 2008 Innovations / 28
  29. 29. IG&H Consulting & Interim market driven, operation wise IG&H Consulting & Interim Vijzelmolenlaan 10 – 18 3447 GX Woerden P.O. Box 572 3440 AN Woerden The Netherlands T: +31 (0)348 496 300 F: +31 (0)348 496 397 I: www.igh.nl © IG&H Consulting & Interim, Woerden 2008 Innovations / 29
  30. 30. Woerden, October 2008 Innovations in Retail Financial Services Remarkable initiatives from around the globe © IG&H Consulting & Interim

×