Benefiting the financial customer with Web2.0 Hayden Sutherland Ideal Interface 14 January 2008

Topics Definition of Web 2.0 How are Financial Services using Web2.0? All that glitters… Information vs. Application Interfaces How other companies are using Web2.0 Our thoughts About Us

Definition of Web 2.0

How are Financial Services using Web2.0?

All that glitters…

Information vs. Application Interfaces

How other companies are using Web2.0

Our thoughts

About Us

Definition of Web 2.0 Web 2.0 is the most ‘over hyped’ term of 2007 But there is no single recognised definition It has been driven by the ubiquity of broadband internet connectivity & the browser It is generally agreed to be a mix of emerged trends: Community & collaboration: Social Networks, UGC, Wiki’s, Blogs Web-Centric Services Google Apps, SaaS, SOA, Syndication/Push, etc. Richness: Personalised, Interactivity, Pod/Video

Web 2.0 is the most ‘over hyped’ term of 2007

But there is no single recognised definition

It has been driven by the ubiquity of broadband internet connectivity & the browser

It is generally agreed to be a mix of emerged trends:

Community & collaboration:

Social Networks, UGC, Wiki’s, Blogs

Web-Centric Services

Google Apps, SaaS, SOA, Syndication/Push, etc.

Richness:

Personalised, Interactivity, Pod/Video

A changing landscape “ New companies are transforming our industry” Jacques Kemp, ING In 2000 – Items from Ebay In 2005 – Music from iTunes In 2010 – Money from ??? Technology Enables a better dialogue with the end user But… numerous touch-points Creates ‘channel confusion’ Especially when they provide different levels of service Different generations are interacting and using Financial Services in different ways

“ New companies are transforming our industry” Jacques Kemp, ING

In 2000 – Items from Ebay

In 2005 – Music from iTunes

In 2010 – Money from ???

Technology

Enables a better dialogue with the end user

But… numerous touch-points

Creates ‘channel confusion’

Especially when they provide different levels of service

Different generations are interacting and using Financial Services in different ways

How are Financial Services using Web2.0 ? Well…. Most in the UK FS’s aren’t! Web2.0 adoption is “low” to “low/medium” Infosys Web2.0 Evaluation Oct 2007 Researched 155 Financial Service Providers Worldwide 11 in UK, 65 in USA Critera: Content, Collaboration & Commerce However there are some good reference examples of its implementation in USA E.g. Wells Fargo 1 st Bank to Blog, 1 st in Second Life, 1 st VP of Social Media!

Well…. Most in the UK FS’s aren’t!

Web2.0 adoption is “low” to “low/medium”

Infosys Web2.0 Evaluation Oct 2007

Researched 155 Financial Service Providers Worldwide

11 in UK, 65 in USA

Critera: Content, Collaboration & Commerce

However there are some good reference examples of its implementation in USA

E.g. Wells Fargo

1 st Bank to Blog, 1 st in Second Life, 1 st VP of Social Media!

How are Financial Services using Web2.0 ? Community & collaboration P2P Finance www.zopa.com (A start-up, gaining traction in market) ‘ Crowdsourcing’ financial markets research Social Network for investors to test their investing strategies http://www.marketocracy.com/ Social Media Barclays Bank Investing Group on Facebook http://www.facebook.com/group.php?gid=2324229644 Blogs – several good examples ING Asia http://www.ingblogs.com/mycupofcha/ Wells Fargo Student Loans http://blog.wellsfargo.com/StudentLoanDown

Community & collaboration

P2P Finance

www.zopa.com (A start-up, gaining traction in market)

‘ Crowdsourcing’ financial markets research

Social Network for investors to test their investing strategies

http://www.marketocracy.com/

Social Media

Barclays Bank Investing Group on Facebook

http://www.facebook.com/group.php?gid=2324229644

Blogs – several good examples

ING Asia http://www.ingblogs.com/mycupofcha/

Wells Fargo Student Loans http://blog.wellsfargo.com/StudentLoanDown

How are Financial Services using Web2.0 ? Web-Centric Services Google Apps, etc. (n/a) Security concerns have led to low uptake SaaS - e.g. Salesforce.com – (medium) Has high adoption rates in specific company’s Syndication/Push (medium) RSS* used by Charles Schwab for updates Widgets (use RSS feed) as used by: Financial Times, Yahoo Finance, Bloomberg, etc. However no UK FS provides: company news, rate updates, etc. by RSS

Web-Centric Services

Google Apps, etc. (n/a)

Security concerns have led to low uptake

SaaS - e.g. Salesforce.com – (medium)

Has high adoption rates in specific company’s

Syndication/Push (medium)

RSS* used by Charles Schwab for updates

Widgets (use RSS feed) as used by:

Financial Times, Yahoo Finance, Bloomberg, etc.

However no UK FS provides: company news, rate updates, etc. by RSS

How are Financial Services using Web2.0 ? Richness Personalised (high use) There are highly configurable financial sites E.g. http://uk.finance.yahoo.com/ Individual retail FS companies do not allow non-proprietary data or applications into their own sites Drive mutual benefit for the user and our business Interactivity (low use) Functionality, such as intelligent/automatic form completion, is scarce amongst UK Retail FS sites – this is a ‘Quick Win’ Pod/Video (low to medium use) First Direct Podcasts http://www.interactive.firstdirect.com/podcast.html HSBC Corporate PR Video http://www.hsbc.co.uk/1/2/business/contact-hsbc/commercial-centres

Richness

Personalised (high use)

There are highly configurable financial sites

E.g. http://uk.finance.yahoo.com/

Individual retail FS companies do not allow non-proprietary data or applications into their own sites

Drive mutual benefit for the user and our business

Interactivity (low use)

Functionality, such as intelligent/automatic form completion, is scarce amongst UK Retail FS sites – this is a ‘Quick Win’

Pod/Video (low to medium use)

First Direct Podcasts

http://www.interactive.firstdirect.com/podcast.html

HSBC Corporate PR Video

http://www.hsbc.co.uk/1/2/business/contact-hsbc/commercial-centres

Example 1 – www.wesabe.com A rich user interface Uses (AJAX) Allows its users to Centralise their finances and share with others

Example 2 - www.join2grow.biz Launched by Fortis in Q1 2007 A Social Network site for European entrepreneurs Interactivity incl: Forum, chat, video blogs, etc.

How WILL Financial Services be using Web2.0 ? “ I think that eventually these kinds of Web 2.0 technologies will transform the business model through community development, 360- degree view of important product enhancements that should be made.” Harvey Koeppel, CIO & SVP Citigroup “ I strongly believe that User Generated Content and Social Media are a major opportunity for us” Christophe Langlois, Senior Innovation Manager, Lloyds TSB

“ I think that eventually these kinds of Web 2.0 technologies will transform the business model through community development, 360- degree view of important product enhancements that should be made.”

Harvey Koeppel, CIO & SVP Citigroup

“ I strongly believe that User Generated Content and Social Media are a major opportunity for us”

Christophe Langlois, Senior Innovation Manager, Lloyds TSB

All that glitters… Security issues are just as relevant today Based on an evolving web platform Standards & security analysis still required “ About 80 percent of development and deployment time for customer-facing and internal [Web2.0] tools is spent on security measures, such as authentication and authorization”. Steve Ellis, EVP Wells Fargo Usability can suffer Jakob Nielson - December 2007 [Web2.0 features] add more complexity than they're worth. Before throwing spending money at "2.0" features, make sure that you have all the "1.0" requirements working to perfection.

Security issues are just as relevant today

Based on an evolving web platform

Standards & security analysis still required

“ About 80 percent of development and deployment time for customer-facing and internal [Web2.0] tools is spent on security measures, such as authentication and authorization”.

Steve Ellis, EVP Wells Fargo

Usability can suffer

Jakob Nielson - December 2007

[Web2.0 features] add more complexity than they're worth.

Before throwing spending money at "2.0" features, make sure that you have all the "1.0" requirements working to perfection.

Information Vs Applications ‘Basic Duality’ of the user experience via a browser Jesse James Garrett – http://www.jjg.net There are 2 different ways to present an interface: As a hypertext system For navigating through content / information As a software interface For using an application

‘Basic Duality’ of the user experience via a browser

Jesse James Garrett – http://www.jjg.net

There are 2 different ways to present an interface:

As a hypertext system

For navigating through content / information

As a software interface

For using an application

Web Interfaces for Hypertext Example: Current a/c benefits page Its Information - therefore browse-able Infrequent use Utilises ‘recognition’ skills ‘Heat Map’ shows users scanning content and identifying common elements e.g. logos, bullets & icons

Example: Current a/c benefits page

Its Information - therefore browse-able

Infrequent use

Utilises ‘recognition’ skills

Web Interfaces for software Example: Online banking An Application and therefore task-based Frequent use, repetitive actions Utilises ‘recollection’ skills ‘Heat Map’ shows an experienced user going straight to ‘Quick’ area to carrying out specific action

Example: Online banking

An Application and therefore task-based

Frequent use, repetitive actions

Utilises ‘recollection’ skills

How other companies are using Web2.0 Retail One-page shopping basket Reduces drop-out rates User-generated product reviews Validates opinion and increases propensity to buy Travel Rich Interface for selecting hotels Engages user and increases conversions

Retail

One-page shopping basket

Reduces drop-out rates

User-generated product reviews

Validates opinion and increases propensity to buy

Travel

Rich Interface for selecting hotels

Engages user and increases conversions

So where’s the Intelligent Interface going? Application design in the future adapts to user needs Recommends personalised products Alternatives Up & cross sell Only collects data once E.g. Why does an application that knows your monthly income still ask you your yearly salary? Automation of common tasks E.g. Pre-population of regular transferred sum to other a/c Scenario / planning tools E.g. Investing plan

Application design in the future adapts to user needs

Recommends personalised products

Alternatives

Up & cross sell

Only collects data once

E.g. Why does an application that knows your monthly income still ask you your yearly salary?

Automation of common tasks

E.g. Pre-population of regular transferred sum to other a/c

Scenario / planning tools

E.g. Investing plan

Our Thoughts There are both opportunities & dangers for Financial Services companies using Web 2.0 Identify the opportunities available Prioritise according to customers / market E.g. Students use: Blogs, Comments (UGC) & Tagging Measure the effectiveness Make sure all channels work as hard as they can – together! Data collected once only Develop something usable A small amount of personalisation could create large reward Make content browse-able Make applications quick & effective Ensure viable business case for adoption Plan the accompanying technology road-map “ If you are not planning to run online banking with significant AJAX by 2010 expect to be left behind” - http://thebankwatch.com

There are both opportunities & dangers for Financial Services companies using Web 2.0

Identify the opportunities available

Prioritise according to customers / market

E.g. Students use: Blogs, Comments (UGC) & Tagging

Measure the effectiveness

Make sure all channels work as hard as they can – together!

Data collected once only

Develop something usable

A small amount of personalisation could create large reward

Make content browse-able

Make applications quick & effective

Ensure viable business case for adoption

Plan the accompanying technology road-map

“ If you are not planning to run online banking with significant AJAX by 2010 expect to be left behind” - http://thebankwatch.com

About Us Ideal Interface A specialist digital consultancy User-centred design & interface improvement Web & eCommerce strategy Proven delivery capability Expertise in Financial Services, Retail & Travel sectors Passionate about delivering practical human-to-technology interactions….. that add value! Contact: [email_address]

Ideal Interface

A specialist digital consultancy

User-centred design & interface improvement

Web & eCommerce strategy

Proven delivery capability

Expertise in

Financial Services, Retail & Travel sectors

Passionate about delivering practical human-to-technology interactions….. that add value!

Contact: [email_address]