Banking on Digital: Innovation in Financial Services
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Banking on Digital: Innovation in Financial Services

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A 'Digital First' mindset is fundamental for financial services providers focused on significantly enhancing customer satisfaction, building customer loyalty and deepening share of wallet. In this ...

A 'Digital First' mindset is fundamental for financial services providers focused on significantly enhancing customer satisfaction, building customer loyalty and deepening share of wallet. In this joint Accenture and Backbase webinar, Joydeep Bhattacherya, Managing Director at Accenture and Jouk Pleiter, CEO & Co-Founder at Backbase will talk about how banks can adopt a Digital First strategy and will focus on how to create a Amazon-like post-login banking experience.

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    Banking on Digital: Innovation in Financial Services Banking on Digital: Innovation in Financial Services Presentation Transcript

    • New  Banking  Distribu1on  Models   August  2013  
    • Copyright © 2013 Accenture All rights reserved. 2         Joydeep  (Joy)  Bha6acharya   Digital  lead,  Financial  services  EALA   Accenture  InteracCve   j.a.bha6acharya@accenture.com     Intros    
    • Copyright © 2013 Accenture All rights reserved. 3 Agenda   Macro  trends  affec1ng  banking  Industry   Emerging  models   Next  genera1on  concepts   The  intelligent  mul1channel  bank   The  digital  ecosystem  bank   The  socially  engaging  bank  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   4 Industry  challenges  are  moving  banks  toward  a   re-­‐inven1on…   •  DifferenCaCng  services  in  an  increasingly  commodiCzed  market   •  Defending  payment  services  against  new,  emerging  compeCCon   •  Restoring  customer  trust  and  engagement   •  Providing  a  tailored  and  relevant  customer  experience   •  Developing  mobile  channels  into  a  sales,  rather  than  service,  tool   •  Achieving  a  return  from  investment  in  social  media   •  Maintaining  margins  in  commodity  product  lines   •  ArCculaCng  a  clear  digital  vision  across  web,  social  and  mobile   •  Leveraging  customer  data  efficiently  and  compeCCvely   •  Evolving  legacy  technology  to  compete  with  newer  firms   Retailiza1on   Customer  experience   Technology  adop1on   Creates  a  need  for  new  banking  models   ChallengesTransformation drivers
    • Copyright  ©  2013  Accenture    All  rights  reserved.   5 3  New  Priori1es  for  Transforma1on  …   1 The  Intelligent   Mul1channel   Bank   Go  Analy1cal   Strategically  apply   analyCcs  to  more   effecCvely  meet   customers’  financial   needs   3 The  Socially   Engaging   Bank   Go  Social   Leverage  social  media   interacCons  to   increase  customer   inCmacy   2 The  Digital   Ecosystem   Bank   Go  Mobile   Become  the  centre   of  an  ecosystem  –   powered  by  mobile   –  selling  financial   and  non-­‐financial   services  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   6 The  Intelligent  Mul1channel  Bank   Go  Analy1cal   Advanced  mulCchannel   integraCon,  focusing  on   digital   Pervasive  analyCcs   uClising  customer  data,   microsegmentaCon  and   predicCve  modeling   Real  Cme  interacCons   management  for   increased  conversion   rates   Product  offerings  and  pricing   schemes,  based  on  microsegments   and  opCmized  by  channel   Remote  advisory  services   Strategically  apply  analy1cs  to  more  effec1vely  meet  customers’  financial  needs  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   7 Customer needs Customer experience (based on interaction with the bank) Channels Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Onboarding / Fulfillment Processes Products Improved Sales Funnel Channels Customer 1 desired experience Customer 2 desired experience Sequence of lower cost for the bank Actions to re-channel customer experience (Values / Convenience / Pricing) The  Intelligent  Mul1channel  Bank   Crea1ng  mul1channel  lean  experiences  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   8                  Intelligent  Bank  capabili1es   A real-time data engine drives customer touch-points based on a wide range of data sources BRANCH     CALL  CENTER   WEBSITE   MOBILE  APP  /   SMS   EMAIL   DIRECT  MAIL   BRANCH   CALL  CENTER   WEBSITE   MOBILE  APP  /   SMS   EMAIL   DIRECT  MAIL   Outbound   Inbound  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   9 The  Digital  Ecosystem  Bank   Go  Mobile   Become  the  centre  of  an  ecosystem  –  powered  by  mobile  –  selling  financial  and  non-­‐ financial  services   Mobile  payments,  based  on   Near  Field  CommunicaCon   or  mobile  wallet,  enhance   bank  compeCCveness  and   customer  retenCon   Mobile  markeCng,  loyalty   and  analyCcs  enrich   proposiCons  through   mobile  commerce     Managing  alliances   and  partnerships  with   non-­‐banking  operators   Powered  by  set  of  founda1onal  digital  capabili1es    
    • Copyright  ©  2013  Accenture    All  rights  reserved.   10 Rise  of  Ecosystems   Ecosystems  provide  banks  with  the  opportunity  to  enrich  their  customer  insight  and   therefore  personalize  proposi1ons   “How  to  manage  my     money/  my  transac1ons/ marketplace”  ecosystem  “Share  experience”   ecosystem   “Connect  me”  ecosystem   “Now  discover”  stuff   ecosystem   “Help  for  searching  for   stuff”  ecosystem  
    • Copyright © 2013 Accenture All rights reserved. 11 What  could  the  Bank  Ecosystem  look  like?   Customers Merchants Bank • MulCchannel  pla`orm   aggregaCng  merchant’s   proposiCon     • TransacCons-­‐based   analyCcs   • Digital  markeCng   support     •  Extend  Customer  reach  with  a  trusted  brand   •  Maximize  Customer  contact  capability   •  Access  to  digital  markeCng  through  customizable  loyalty  programs   •  “One  stop  shop”  to  saCsfy  mulCple  Customer  needs   •  Selected  and  targeted  offering  driving  loyalty   •  Combines  online  and  offline  proposiCon,  improving  customer  experience   •  AddiConal  channel   for  Customer  pull   •  New  revenues   streams  from  non-­‐ financial  products   •  Allows  e-­‐sell  of   the  e-­‐commerce   infrastructure  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   12 Bank  of  America  integrates  3rd-­‐party  discounts   and  offers  into  online  banking   §  Customized  discount  offers     embedded  in  users’  statements   Bank  of  America’s  BankAmeriDeals  evaluates  customer  card  spending  and  offers   discounts  based  on  previous  purchases  made  in  commercial  stores     §  Internet  banking   site  offers   personalized   offers   throughout  the   user  experience   §  Deals  first  offered  to  employees  for  feedback   before  opening  the,  up  to  its  customer  base  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   13 Alternate  means  of  banking  at  Garan1   Turkey’s  Garan1  Bank  and  mobile  phone  operator  Turkcell  have  teamed  up  with   MasterCard  to  launch  a  prepaid  SIM  card  called  Cep-­‐T  Para     •  Can  be  used  at  any  store  accepCng   MasterCard   •  Available  at  any  Turkcell   CommunicaCon  Center     •  Load  money  to  the  card  using  any   GaranC  ATM   •  Combines  mobile  and  banking  services   •  SIM-­‐based  secure  service  that  can  be  used  with  any   mobile  handset  device     •  Turkcell  customers  access  payment  systems  offered  by   GaranC  Bank  without  being  a  direct  bank  customer   With  the  launch  of  this  new   prepaid  card  service,   Garan1  plans  to  gain  1.5   million  addi1onal   unbanked  customers  within   the  next  three  years  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   14 The  Socially  Engaging  Bank   Go  Social   Leverage  social  media  interac1ons  to  increase  customer  in1macy   Social  media  monitoring   to  engage  customers,   miCgate  risks  and   promptly  react  to  issues   Social  digital  marke1ng  to   define  the  best  content  for   individual  customer   profiles  and  a6ract  them   Social  CRM  to  enrich   customer  data  with  social   media  informaCon,   facilitaCng  more  effecCve   proposiCons  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   15 The  Socially  Engaging  Bank   Go  Social   Top  Areas  of  Interest     Ini1a1ves   SOCIAL  CUSTOMER  SERVICE     SOCIAL  BANKING     P2P  TRANSACTIONS     Customer  Service  on  Twi_er     Online  bank  account  integra1on  on   Facebook   P2P  Payments  via  digital  wallet   Integrated  CRM  module  for  Twi_er   and  Facebook   Virtual  Branch  on  Facebook       Social  Banking  and  Payment  integra1on   P2P  Payments  via  bank  account   integra1on   Social  goal  seang  /  Crowdfunding  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   16 Social  media  transforma1on  journey   Test,  learn  &  refine   Build  communi1es   Create  audience  with  several  communiCes   aggregated  on  relevant  interests/  topics   Engage  Users   Have  on  going  business  interacCons     with  Social  Media  users   Drive  business   Achieve  results  integraCng  Social  Media  as     an  engaging  layer  (“service  pla`orm”)   Listen   Collect  relevant   feedback  to  feed   other  key   components  and   tune  iniCaCves   Brand   Product   Customers   Ini1a1ves   ■  Understand  your   posiCon  (brand  &   products)   ■  Leverage  influencers   ■  Address  customer   needs  and   complaints   ■  Develop  new   offerings   ■  Collect  relevant   data  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   17 Social  media  transforma1on  journey   Test,  learn  &  refine   Build  communi1es   Create  audience  with  several  communiCes   aggregated  on  relevant  interests/  topics   Engage  Users   Have  on  going  business  interacCons     with  Social  Media  users   Drive  business   Achieve  results  integraCng  Social  Media  as     an  engaging  layer  (“service  pla`orm”)   ■  by  products   ■  by  financial  need   ■  by  non  financial  need   ■  by  customer  segment     ■  Q  &  A  sessions   ■  “Offline”  caring  aier  online  intercepCon   ■  Customer  care   ■  Contests  (to  get  influencers)   ■  “Edutaining”  videos   ■  Entertaining  apps/  videogames   ■  Virtual  Branch   ■  Product  development   ■  IniCaCves  leveraging  virality     (e.g.  member  get  member)   ■  IniCaCves  leveraging  “social   informaCon”   ■  LocaCon  based  iniCaCves   Listen   Collect  relevant   feedback  to  feed   other  key   components  and   tune  iniCaCves   ■  Overall  posiConing   ■  Overall  senCment  about  exisCng  or  new  products   ■  CollecCon  of  feedback  about  iniCaCves   ■  IntercepCon    of  customer  complains   ■  Enrich  customer  profile  by  collecCng  customer  interests   Brand   Product   Customers   Ini1a1ves   ■  Understand  your   posiCon  (brand  &   products)   ■  Leverage  influencers   ■  Address  customer   needs  and   complaints   ■  Develop  new   offerings   ■  Collect  relevant   data  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   18 Infusing  social  media  concepts  into  banking  at   Fidor  Bank   •  P2P  lending  through   crowdfunding   •  Online  beang  pladorm  for   short-­‐term,  low-­‐value  stock   market  trading   •  Saving  account  interest   rates  based  on  number  of   Likes  on  bank  Facebook   page   •  Describing  itself  as  “banking  with  friends”,  Fidor   allows  customers  to  register  through  Facebook   Connect   Fidor  Bank  AG,  a  German  100%  online  bank,  leverages  social  media  for  its  day-­‐by-­‐day   ac1vi1es.    
    • Copyright  ©  2013  Accenture    All  rights  reserved.   19 Moven  using  social  media  reputa1on  in  credit   scoring   •  CRED  score  used  to  make  decisions  about   services  and  pricing   •  e.g.  improving  CRED  scores  earn  the  right  to   checking  account  with  overdrai  protecCons   •  Mobile  phones  used  as  primary  payment  devices,   replacing  credit/debit  cards  and  cash   •  Visual  personal  financial  management  tool   •  Introduced  financial  health  score,  CRED,  uClizing  the   social  media  reputaCon  of  the  customer.   Moven  is  an  innova1ve  New  York-­‐based  start-­‐up.  All  transac1ons  are  conducted   online  or  through  mobile  devices.  Uses  social  media-­‐derived  scores  to  determine   pricing  and  access  to  products.  
    • Copyright  ©  2013  Accenture    All  rights  reserved.   20 UBANK  -­‐  Crea1ng  a  stand-­‐alone  website  to  compare   users  spending  habits  in  Australia     •  PeopleLikeU  is  a  stand  alone  website  which,   relying  on  a  dataset  made  by  historical   informaCon  from  NaConal  Australia  Bank,   allows  users  to  compare  spending  habits  in  a   precise  area   •  This  website  enables  Australians  to  select  their   Once  selected  the  profile,  this  tool  provides   specific  staCsCcs  on  sample  expenditures,   giving  informaCon  on  different  categories  such   as  uCliCes,  shopping,  housing,  food  and  travel:   users  can  therefore  have  specific  informaCon   about  spending  level  in  a  precise  area,  for   example  knowing  how  much  does  a  similar   profile  spend  for  housing  in  the  same  postcode   zone   UBank,  a  Na1onal  Australia  Bank  group  ins1tute,  has  developed  PeopleLikeU,  an   econographic  tool  which  allows  Australian  to  compare  finances  and  spending  habits  
    • Next-­‐genera1on  online  banking   The  characteris1cs  of  a  future-­‐looking  OLB  experience   Analy1cal   Using  all  of  the  informaCon  about  a   customer  to  their  advantage,   creaCng  a  deep  and  intuiCve   understanding  of  their  goals   Social   Leveraging  the  power  of  a   customer’s  social  network  to  create   a  greater  personal  inCmacy   Experience-­‐led   Focusing  on  fulfilling  a  customer’s   needs,  rather  than  selling  banking   products   Ecosystem   A  network  of  partnerships,  both   financial  and  non-­‐financial,  seamlessly   integrate  a  customer’s  banking  acCviCes   with  the  rest  of  their  day-­‐to-­‐day  life  
    • What  might  a  next-­‐genera1on  experience  look  like?   Clients  will  demand  new  capabili1es  and  func1ons   •  A  customer-­‐centric  user  experience   that  engages  on  an  emoConal  level   •  A  consistent,  joined-­‐up  service  across   any  channel  or  device   •  Mul1ple  channels  of  help  and   assistance   Managing  Money   Ecosystems   Superior  Service   •  Highly  relevant,  targeted  content   •  Online  tools  that  help  a  customer   achieve  their  goals   •  Predict  and  an1cipate  customer   demands   •  Understand  a  customer’s  social   circumstances  and  connecCons,     •  Build  a  wide  network  of  partnerships   Atomised   •  Make  func1ons  available  beyond  the   bank’s  web  site   •  Take  advantage  of  emerging   consumer  technology