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Banking models in 2016

Banking models in 2016

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Banking in  2016_by_accenture Banking in 2016_by_accenture Document Transcript

  • Banking 2016Accelerating growthand optimizing costs indistribution and marketing
  • 2 It is time for retail banks to change. Current branch-based distribution Accordingly, each bank needs to define Faced with a daunting array of models are no longer sustainable in its own target business model in light market, regulatory, customer, cost and most developed countries and are unable of its history, market, positioning, operational challenges, many banks are to meet the rapidly evolving customer ambitions, etc. We think there are three struggling to post even moderate growth. needs and requests for easy access and business models banks should consider simplicity across their banking services. when defining their own model: Projected revenue growth rates, according to an Accenture analysis of 2011-2014 Accenture believes there is a clear path 1.  ne that builds on enhanced O business plans for a group of 30 global forward for banks that begins with the multichannel experiences to banks, estimate 6.5 percent average shoring up of core business operations to engage customers and meet their growth (4 percent Europe/North America improve efficiency, customer relevance and financial needs effectively (the average) following -0.5 percent retail profitability—in other words, “doing the “Intelligent Multichannel” Bank), revenue growth for 2008-2011. Bankers basics right.” While some banks may excel with the strategic application of are beginning to realize that it will be a simply by improving on the basics, including analytics at the core of this model challenge to meet these growth targets and “smart-sizing” their distribution networks, 2.  ne that leverages social media O know they have to win three critical battles: others need new business and operating interactions to increase customer restoring customer trust and engagement, models to compete and grow going forward. intimacy (the “Socially Engaging” Bank) defending their payments business Keeping one eye on the present and one eye against progressive disintermediation on the future is the key paradigm we have 3.  ne that places the bank at the center O from new entrants (e.g. Google Wallet, defined as “Banking 2016—Next Generation of an ecosystem selling financial and PayPal) and avoiding commoditization. Banking”, drawing inspiration from some non-financial services, leveraging notably innovative retailing models. in particular the power of mobile technology (the “Financial/Non- Financial Digital Ecosystem” Bank) The money on the table can be significant. A bank working aggressively to implement all three of these business models can double its annual revenue growth rate (from 4 percent to 8-plus percent in developed markets) while reducing its cost to serve by 20 percent or more. Regardless of the models being pursued, bank governance overall must evolve, giving appropriate weight to customer metrics in the key areas of reputation, commercial performance, service performance, sales performance and the capabilities required to support them. Accenture Distribution and Marketing Services
  • 3“Next Generation Banking” models Today “Next Generation Banking” models The “Financial/ The “do the The “Intelligent The “Socially Non-Financial Digital basics right” Bank Multichannel” Bank Engaging” Bank Ecosystem” Bank −− Optimized branch −− Integrated −− Customer engagement −− Bank as trust center network and multichannel where they spend with an extended contact center architecture, their time (e.g. on proposition (financial powered by analytics social media) based and non-financial) −− Enhanced digital (real-time event on personal interests channels −− “The bank where you management, etc.) −− Leverage influencers are” leveraging the −− Need-based offerings −− Advanced digital power of mobile and consistent −− Co-creation based advisory sales behaviors on increased −− M-payment services −− Need-based offerings customer intimacy −− Basic multichannel optimized by channels integration “My bank effectively “My bank engages with “My bank gives answers to my engages with me on my me where I spend time.” needs, providing easy access.” real financial needs.”Source: AccentureCustomer-oriented metrics evolutionProfitability-based metrics Holistic stakeholder perspective Management and investors view (Shareholders Perspective) Commercial Performance • ARPU (revenue per customer) −− Revenues Service Performance • Net customer flow • Customer engagement Bank Reputation • Customer lifetime value −− Profitability • Customer satisfaction • Reputation index • Cross selling −− Cost-to-income • Net promoter score • Brand recognition • Recurring revenues % −− ROE −− Market share −− EVA −− Share price trend −− Market capitalization −− EPS Sales Effectiveness • Sale productivity • Sales per square mile Capabilities • Campaign effectiveness • Customer centricity index • Product penetration • Customer contacts • Social channel engagementSource: AccentureAccenture Distribution and Marketing Services
  • 4 “Banking 2016—Next “Banking 2016—Next The key components of “doing Optimizing the the basics right” are: Generation Banking” branch network 1.  ranch network optimization (number B foundation: doing and size of branches), reviewing network The most critical aspect of “doing the basics right” is improving branch network the basics right architecture (i.e. hub and spoke model) performance, ensuring sustainable positions 2. asic multichannel integration, B and creating adequate foundations for the What is “Banking 2016—Next Generation alignment of channels and “Intelligent Multichannel Bank” model. Banking”? It starts with getting integrated governance processes Branch network effectiveness can be the basics right to address banks’ for real-time banking maximized through strategic localization most immediate challenges: eroding 3. roactive and reactive management P (closing low-performance branches customer trust and satisfaction. interaction based on customer needs operating in markets with limited potential 4. perational customer O first), identifying the right number, segmentation driven by a needs- type, and format of branches according based offering structure to target customers and optimizing 5.  ales force effectiveness powered by S branch processes to free up commercial consistent sales behaviors and tools time and focus on sales generation. 6. imple and clear communication S with customers Networks composed solely of full-service 7. Performance management (new branches with duplicate services and skills customer-oriented metrics) and are no longer sustainable. The branch tailored compensation schemes network model must be designed with careful consideration to differentiated formats and integrated in a multichannel view that is able to maintain territorial coverage, react to local customer needs and optimize skills and capabilities. This extends beyond full-service branches and hubs to include light branches (with an average of 4-5 employees), kiosks and cash-less branches. By migrating low- value activities to digital channels and retail-based formats, banks can satisfy new customer segments and further overall branch network transformation. An efficient “hub and spoke” branch model can help enable a bank to decrease the branches in its overall network by 15-20 percent and reduce average branch staff by 25 percent with the proper mix of flagship, full-service, light and kiosk branches. Furthermore, by specializing in specific services or activities, each branch format is able to deliver a more tailored customer experience and, ultimately, help increase customer satisfaction and loyalty. Accenture Distribution and Marketing Services
  • 5 Opportunities in the •  ocus on branch front-line staff F •  estructure product catalogues by R by designing specific profiles and customer needs and with service levels operational basics dedicated training plans to create based on customer segmentation. In addition to optimizing the an empowered, unified workforce • ntegrate channels to facilitate I branch network, banks have other (we call this “workforce of one”); transparency and data sharing so each opportunities to become more proficient support branch employees with both customer’s buying habits and needs in operational basics and increase formal and informal learning tools are known and can be addressed sales. For instance, they can: that can be enabled and accelerated across an integrated multichannel •  edefine roles and activities at R by cloud-based collaboration buying experience (eliminating a branches through process optimization, capabilities and social media. more silo-structured approach). standardization and initiatives •  nhance digital capabilities to provide E If customers feel they are getting enabling focus on sales, such as a more personalized, streamlined and proper service from their banks and digitalization, back-office automation robust online banking experience, the product mix and price points and integrated CRM systems. Gathering complemented by educational tools meet their expectations, the expected and pre-filling customer information and simulators to better address result will be greater customer should also be considered. self-directed customers’ needs. satisfaction, retention and loyalty. • mprove branch sales force performance I •  evelop basic mobile banking D by implementing next-generation capabilities to provide services front-end workstations that can that take full advantage of the provide branch employees with the “on the go, anywhere, anytime” latest tools, information and guidance nature of mobile devices. to engage customers effectively. Banks should consider differentiated branch formats Cash-less, kiosks— Light branches— Full-service, hubs— Flagships— maintain for service maintain for sales maintain for advanced banking innovate, attract COV. 50% COV. 30% COV. 15% COV. 5% sales services sales services sales services sales services −− 100% transactions −− 50% transactions −− 40% transactions −− 30% transactions and 50% sales and 60% sales and 70% sales −− Open with staff 1-2 days per week −− Tailored hours −− Extended hours −− Extended hours −− Reciprocity income −− Sales lead generation −− Sales lead generation −− Center of sales and service excellence −− Minimal staffing −− Regular staffing: meeter −− Specific staffing:DESCRIPTION levels (not bank skilled and greeter, cashier dedicated business −− Specific staffing employees, people and peripatetic RMs cashiers and (depending on area/ from retailing sector) permanent RMs segment served): −− Able to accept and dedicated business −− Fully automated manage anything −− Highly specialized cashiers and mortgage, trading permanent RMs −− Belonging to full −− Belonging to advisers service/light branches full-service branches −− Location of experts −− Supports light branches −− Tailored merchandising −− Standard merchandising for complex service/sales −− Supports all other types (focus on area and for regulated sales seasonal campaigns) −− Full merchandising −− Tailored merchandising, generating branch traffic focus on innovation −− Advanced ATM −− Remote advisory −− Digital meeter and greeterKEY FEATURES −− Self-service, supported by hubs innovative tools −− Opening hours differentiated per −− Flexible concepts local needs −− Possible franchising model Source: Accenture Accenture Distribution and Marketing Services
  • 6 The future is now: As a first step, banks could design an integrated customer experience based Customers of the “Intelligent Multichannel” Bank can benefit from the ability to three innovative on a streamlined multichannel approach interact with the bank anywhere, anytime, “Banking 2016— and architecture. As banks activate and can receive financial products and new channels, customer inputs and services based on their needs and behaviors Next Generation customer knowledge can be expected through their preferred channels. Banking” models to increase, which would then enable Spain’s Bankinter is a good example of an banks to create micro-segments. Doing the basics right may be the ultimate early adopter in advanced analytics. The Micro-segments are the smallest set of objective for some banks. However, for bank started working on analytics several customers with uniform demographics others mastering the basics becomes years ago and focused on developing and social behaviors, and form the basis the foundation on which to build more commercial propositions based on customer for defining strategic profit pools. innovative capabilities that can help intelligence and the frequency of customer address changing customer behaviors The increased capture and application contacts, both proactive and reactive, and and compete for the critical payments of customer data, properly managed then created the Engloba Geo CRM tool business against new entrants such as and updated through an advanced in 2009. More recently, Bankinter’s belief retailers, technology companies, mobile CRM platform, can help enhance the in analytics led it to introduce different operators and pure-play start-ups. These value and return on product catalogues, units influenced by CRM, such as Risk new capabilities are embodied in the three commercial campaigns based on real- CRM and Operation CRM, and its sales pillars of Accenture “Banking 2016—Next time propositions, as well as lower are still growing thanks to additional Generation Banking”: the “Intelligent distribution costs by optimizing capacity improvements to the Engloba tool. Multichannel” Bank, the “Socially by micro-segment preferences. Another Spanish bank, BBVA, is a good Engaging” Bank, and the “Financial/ A multichannel customer experience example of a bank that operates within Non-Financial Digital Ecosystem” Bank. is based on the right combination of personal advisory space: 24/7 personal The “Intelligent online and offline processes and can customer service is provided to its be enhanced by focusing on dedicated clients who use digital channels to do Multichannel” Bank advisory services (remote or digital). their banking rather than the branch The “Intelligent Multichannel” Bank but still want a personalized service. Expanded bank “availability” for products frequently engages with customers and services allows customers to make through different channels, taking personal choices continuously based on their channel preferences into consideration. needs, while helping the bank refine its The key differentiator of this model is knowledge of customer preferences. the extensive use of analytics that can enable the bank to more effectively understand and meet customers’ needs. Key elements of this model are: Bankinter illustration 1.  dvanced multichannel integration A focusing on digital channels and an integrated architecture 2004 2. Pervasive analytics based on The Science of effective customer data collection, Managing Customers micro-segmentation and predictive modeling to determine the most effective basket of products 3.  eal-time interactions management R 2009 that can increase conversion rates Client Retention Model from inbound and outbound contacts 4.  dvanced advisory services leveraging A digital channels and personal analytics 5.  roduct offerings and related P 2010 pricing schemes based on micro- Analytics Pervasivity segments and optimized by channel Accenture Distribution and Marketing Services
  • 7Banks should consider a set of distinctive capabilities to compete in the future TODAY “Next Generation Bank” models −− Effective multichannel integration −− Pervasive analytics The “Do the The “Intelligent −− Real-time event management basics right” Bank Multichannel” Bank −− Personal digital advisory −− Branch network optimization −− Product offering optimization and scientific pricing −− Basic multichannel orchestration −− Deep customer understanding −− Social media listening and monitoring −− Need-based offerings The “Socially −− Social digital marketing (clustering client engagement) −− Web and mobile Engaging” Bank −− Social CRM (data enrichment channel marketing and optimized offering) and effectiveness −− Empowered branch front-line and sales tools −− Smart interaction The “Financial/Non- −− M-payments with customers −− Mobile commerce ecosystem −− Performance Financial Digital −− Mobile marketing M-loyalty and analytics management Ecosystem” Bank −− Partnership and alliances managementSource: Accenture Possible PathsPervasive analytics, a real-time marketing engine and advancedmultichannel integration can more than double conversion rates Customer Analytics Marketing Engine Multichannel Interaction −− Continuously updated −− Next best offer based −− Real-time proposition customer data on real-time inputs and −− Customized paths based collection through micro-segment features on micro-segmentation all channels and actions prioritization (focus on pre-design (business rules) −− Dynamic segmentation customer experience for and micro segmentation −− Focus on moments each micro-segment) of truth −− Cost optimization and channel capacity evaluation MONEY ON THE TABLE −− x 2/3 conversion rates −− x 2/3 customer interactionsSource: AccentureAccenture Distribution and Marketing Services
  • 8 The “Socially Engaging” Bank The key components of the Most banks today cluster customers “Socially Engaging” Bank are: through traditional drivers (such as average The second “Banking 2016—Next Generation revenue, cross-selling rate) and engage Banking” model emphasizes engaging 1. Social media monitoring to them on a “push” basis. In a “Socially customers where they spend their time, identify opportunities to engage Engaging” Bank, interactions are much with a specific focus on social media to customers, mitigate risks and more personalized. The bank has tailored increase customer intimacy. The intention promptly react to issues interactions with customers based on their is to create relationships based on personal 2. ocial digital marketing building on S interests and intentions communicated via interests, leverage influencers and facilitate clustering to enable the bank to better their actions on social media (for instance, co-creation (the bank and its customers). define the best content for individual by “liking” or sharing something). Such customer profiles and attract them actions can help the bank group customers 3. ocial CRM enriching customer S by common interests, have dialogues data with social media data, thus with them daily on relevant subjects and facilitating more effective propositions offer products when customers need them. The bank subsequently becomes a daily partner, able to address client needs and play an active role along the entire purchasing path, instead of only engaging the client in the final phase. Social media positioning—transformation journey Build communities Engage users Drive business Create audience with several Have ongoing business interactions Achieve results integrating social communities aggregated on with social media users media as an engaging layer relevant interest/topics (“service platform”) −− By products −− Q&A sessions −− Product development −− By financial need −− “Offline” caring after −− Initiatives leveraging virality online interception (e.g. member get member) −− By non-financial need −− Customer care −− Initiatives leveraging −− By customer segment “social information” −− Contests (to get influencers) −− Location-based initiatives −− “Edutaining” videos −− Entertaining apps/videogames −− Virtual branch −− Understand your position −− Address customer needs −− Develop new offerings (brand and products) and complaints −− Collect relevant data −− Leverage influencers −− Overall positioning Brand −− Overall sentiment about Listen Product existing or new products Collect relevant feedback to −− Collection of feedback about initiatives feed other key components and Initiatives tune initiatives −− Interception of customer complaints Customers −− Enrich customer profile by collecting customer interests Source: Accenture Accenture Distribution and Marketing Services
  • 9The more the bank interacts with customers, American Express is one of the financial via Facebook, Foursquare and Twitter,the more information about customers’ services companies that have effectively enhanced by geo-localization functionality.lives and habits that can be collected to applied a strategy of social engagement. More recently, American Express developedrefine communities/profiles. This process American Express started with customer the Go Social platform, which hascan be further extended by introducing service via Twitter and then expanded helped its small-business clients createreal co-creation processes to develop its proposition by taking a cue from and autonomously manage commercialnew products or services and that can Amazon, who asked its customers to link campaigns (increasing merchants’be subsequently offered to different their Amazon accounts to their Facebook acquisition rate from the program’sprofiles. Either way, customers are led profiles in 2010. This allowed Amazon first phase by more than 50 percent).to feel that they are part of the bank, to analyze a complete profile, including Learning from other retail businesseswhich helps to foster greater loyalty to preferences, needs and friends, helping can also be valuable: for example,the institution and makes them less likely it formulate customized offerings and beverage maker Gatorade has createdto shop around for a different provider. discounts. American Express created a Mission Control Center, a “war room” “Small Business Saturday”, playing offInvesting in social media has essentially for monitoring its brand in real-time more common sales days like Black Fridaybecome a requirement to engage today’s across social media, tracking various data and Cyber Monday. The initiative, basedcustomers, considering the extraordinary and running detailed sentiment analysis on linking customers’ American Expressgrowth in social media adoption (400 around key topics and products so it can cards to their Facebook accounts to getpercent increase in the average time respond or adjust its strategy accordingly. rewards, has demonstrated itself to beusers spend on Facebook from 2009- highly successful (30 percent increase in2011, according to Comscore 2011) and sales from 2009 to 2010). In 2011, anotherGeneration Y average usage. In addition, a initiative, “Link, Like, Love”, further increasedsurprising 75 percent of social media users American Express’ relevance as a socialare above the age of 30, which suggests media player by providing customizedthat banks should test new approaches on offerings to customers based on theirclients who fall into this age group first. spending, location and social media profileAmex illustration “We need to go where our Cardmembers and merchants are...” DAVID WOLF Vice President of Global Marketing Capabilities SOCIAL MEDIA VISIONS, 2010 Small Business Saturday Nov. 27 First business step on social media 2010 Link, Like, Love Cardholders benefit from personalized merchant deals linking their card with Facebook, Twitter and Foursquare 2011Accenture Distribution and Marketing Services
  • 10 The “Financial/ competitiveness in the payment arena services that are consistent with the bank and helps retain existing customers vision and image, trusted by the customer. Non-Financial Digital Ecosystem” Bank 2. Enriched propositions through But how can the bank create attractive mobile commerce focused on financial deals and improve customer engagement? The “Financial/Non-Financial Digital and non-financial offerings, mobile Analytics and marketing capabilities linked Ecosystem” Bank represents the bank marketing, m-loyalty and m-analytics with mobile services are required. This “where the customer is”, providing both means the bank must be able to leverage financial and non-financial offerings. 3. Alliances and partnerships with customer information gathered through the This model uses the power of mobile non-banking operators and mobile device, such as mobile transactions technology to offer services extending creation of related content (m-payments) and geo-localization. beyond traditional banking products The bank has the opportunity to become Combined with innovative marketing through a network of partners. The bank a “one-stop shop” and satisfy all relevant initiatives based on mobile advertising, can decide to create or be part of a digital customer needs starting from a unique daily deals, hot deals and loyalty ecosystem, depending on the payments point of contact built on partnership and programs, the overall concept facilitates solution and the role it intends to play. customer trust. As a first step, the bank interaction with customers in real time. The key components of the “Financial/Non- must determine the most attractive non- Mobile payment is a key capability here, Financial Digital Ecosystem” Bank are: financial partners and related offerings given the number of new entrants (e.g. around which to design a complete 1. Mobile payments based on Near telecommunications companies, retailers) in customer experience. Operational alignment Field Communication (NFC) or the payment space. M-payments can enable and management are crucial parts of mobile wallet, that enhances bank transactions and ensure the connection to delivering effective and secure integrated The bank ecosystem proposition One-stop shop Extreme customization Many needs, one brand, one app Offering portfolio Offering model −− M-payments −− Daily deals −− M-ticketing −− Geo-based offerings and search nearby −− Non-banking products and Room for convergence services (from partnerships −− Cross-industry loyalty programs with retailers, etc): lifestyle, with reward system retail and entertainment, −− Product and pricing comparison travel and transport −− Social media integrated −− Customized and integrated financial offerings with −− Digital marketing* non-banking products −− Analytics and (e.g. travel insurance, campaign execution* consumer loans) −− Traditional banking services (e.g. money transfer) Both individual’s and merchant’s needs can be satisfied through a multichannel platform enabling trading and transactions “on the go” * Main impact on both individual and merchant needs Source: Accenture Accenture Distribution and Marketing Services
  • 11additional services usually included in the very beginning and continue to do so cloud storage and a best-in-class searchm-commerce proposition. We suggest banks throughout by leveraging its partnerships engine, proprietary browser (Chrome),precisely define an m-payments strategy, with non-financial institutions. operating system (Chrome+) and the mostideally based on the most common and common smartphone OS (Android), Google It’s important to emphasize that thisadvanced payment solution such as the Maps, GoogleTV, YouTube, Talk and Google model has been designed with the viewmobile wallet. Once the payments solution Voice, proprietary apps domain, its own that customers dealing with so muchis in place, the customer base can be music offering, and Google+ (a mix of information will want and need to trustbetter protected and the risk of customers Twitter and Facebook). Google also is an fewer ecosystem operators. We thinkchanging providers is reduced, given the important player in the NFC ecosystem. Facebook will be the operator for the “Shareincreased natural trust for payment services Its relationship with MasterCard and Citi experience” ecosystem, Google for theprovided by banking institutions versus allows Google to offer retailers more data “Search” ecosystem, big telecommunicationscompanies from non-financial sectors. about their customers and help merchants companies for the “Connect me” ecosystem target ads and discount offers to mobile-In this way, the bank can assume the role and big banks for the “Economic choices” device users near their stores. Googleof trusted advisor, supporting customers ecosystem. For banks that aspire to the Wallet passes payment information overwith financial and non-financial offerings “Financial/Non-Financial Digital Ecosystem” existing payment protocols (includingand opportunities, such as buying a house, model, lessons can be learned from some MasterCard PayPass and Visa PayWave),a car, or even supporting the customer of the defined ecosystems, like Google. and the Nexus S smartphone—whichpreparing for marriage. For all needs The online giant has created one of the Google developed with Samsung—islinked to economic choices, the bank is most complete digital ecosystems through already enabled for NFC transactions.able to support the customer from the a number of integrated services, includingThe digital ecosystem:keeping the customer connected, engaged “Connect me” ecosystem (AT&T, Telefonica, Orange) “Share experience” ecosystem (Facebook) “Economic choices” Customer ecosystem (banks) “Search” ecosystem (Google) “Discover” stuff ecosystem (Amazon)Accenture Distribution and Marketing Services
  • 12 Among banking players, Commonwealth Bank of Australia’s (CBA) mission is to be the first “truly mobile bank”. In 2010, CBA launched the CommBank Property Guide, a mobile app for customers who want to buy a home. Thanks to partnerships within the real estate industry, the bank is able to provide information about houses, prices, area attractiveness and then simulate tailored mortgage scenarios. This end- to-end approach has propelled the CBA app’s success and raised the possibility of extending its uses to other sectors, such as autos. Another step CBA took to establish its role in the mobile ecosystem is related to P2P payments and is based on the launch of its “Kaching” initiative, where customers can pay through Facebook, email or a mobile number: in less than two months the app has been downloaded by 110,000 customers. Commonwealth Bank of Australia illustration Vision for 2013 2010 Anyone, Anywhere, Anytime End to End Needs Coverage 2010 House need: real estate app produced 1% of mortgages Kaching P2P APP 2011 110K downloads in 2 months Accenture Distribution and Marketing Services
  • 13 13 “Given the current global banking landscape and the further changes and disruptions on the horizon, banks that grasp and execute these new business models and principles are better equipped to survive and thrive through 2016 and beyond.” Accenture Distribution and Marketing Services
  • 14 Capabilities mix The “Financial/ The “Do the The “Intelligent The “Socially Non-Financial Digital Focus areas basics right” Bank Multichannel” Bank Engaging” Bank Ecosystem” Bank Branch network optimization Web and mobile channel marketing and effectiveness Basic multichannel orchestration Empowered branch front-line and sales tools Deep customer understanding Smart interaction with customers Needs-based offerings Performance management Effective multichannel integration Pervasive analytics (next product, pricing, etc.) Real-time event management Personal digital advisory Product offering optimization and scientific pricing Social media listening and monitoring Social digital marketing (clustering, client engagement) Social CRM (data enrichment and optimized offering) M-payments Mobile commerce ecosystem Mobile marketing, M-loyalty and analytics Partnership and alliance management Low Medium High Accenture Distribution and Marketing Services
  • 15Moving forward: In planning for the future, we recommend banks:adopting “Banking •  efine a shared vision on future D2016—Next Generation scenarios/opportunities involving theBanking” capabilities entire management team. In doing so, it’s essential to assess customerThe three “Banking 2016—Next Generation base and prospects to identify aBanking” models are not final destinations common foundation for any decisionper se, but rather represent the higher •  efine a “North Star” model in light Dmaturity levels of all the capabilities of the three defined business models.they encompass. Each bank can develop A “North Star” model is defined by thetheir identified capabilities differently, appropriate capability mix, and how itbut defining a clear strategy and affects appropriate investment choicescustomer proposition are paramount. •  nsure a dedicated focus on ECapability maturity levels can be different. “Doing the basics right”, creatingBanks can pursue their journeys toward a “war room” if appropriatetheir chosen model by considering abroad mix of potential capabilities, •  reate a digital lab and foster a Ceach opting for the capabilities mix “test and learn” approach acrossmost appropriate to its business and social, mobile and digital servicesoperating model goals. They then need •  efine an appropriate sourcing Dto develop and build out their own strategy to scale and deliverportfolio of capabilities to achieve them. required capabilities at speedThis journey will be based on: By following the “Banking 2016—Next• Market Generation Banking” approach, banks are better positioned to achieve their• Strategy pursued defined “North Star”, thereby increasing•  vailable capabilities/current A performance and competitiveness in the capabilities maturity level near- and long-term. The money at stake• Investment affordability is significant. With the right strategy and level of commitment, banks in developed markets stand to double their annual revenue growth rates (i.e., from 4 percent to 8-plus percent) and lower their costs to serve by more than 20 percent. Given the current global banking landscape and the further changes and disruptions on the horizon, banks that grasp and execute these new business models and principles are better equipped to survive and thrive through 2016 and beyond.Accenture Distribution and Marketing Services
  • For more information, please contact: Contributors: About AccentureGlobal Ambrogio Terrizzano Accenture is a global management ambrogio.terrizzano@accenture.com consulting, technology services andPiercarlo Gera outsourcing company, with more thanPiercarlo.gera@accenture.com Silvia Pesaresi 246,000 people serving clients in silvia.pesaresi@accenture.com more than 120 countries. CombiningNorth America unparalleled experience, comprehensiveNigel Smith Monica Del Naja capabilities across all industries andNigel.smith@accenture.com monica.del.naja@accenture.com business functions, and extensive research on the world’s most successfulStephen Gardiner – Canada companies, Accenture collaboratesStephen.gardiner@accenture.com with clients to help them become high-performance businesses andEurope, Africa, Latin America governments. The company generatedAlberto Antonietti – Italy net revenues of US$25.5 billion for theAlberto.antonietti@accenture.com fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.Joël Nadjar – FranceJoël.nadjar@accenture.comPeter Kirk – UK/IrelandPeter.kirk@accenture.comMiguel Montañez – SpainMiguel.montañez@accenture.comRobin Silfverhielm – SwedenRobin.silfverhielm@accenture.comFlaviano Faleiro – BrazilFlaviano.faleiro@accenture.comChristof Innig – GermanyChristof.innig@accenture.com Asia PacificMark Halverson – JapanMark.a.halverson@accenture.comAlexander T. Trott - China and SingaporeAlexander.t.trott@accenture.comDavid J. Levi – South EastAsia and AustraliaDavid.j.levi@accenture.comCopyright © 2012 AccentureAll rights reserved.Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.