Innovative Go-To-Market strategies for Financial Product Innovations

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Financial Product Innovation Asia Pacific 2012 - Turning product innovation into competitive advantage that drives revenues
July 2012
Innovative Go-To-Market strategies for Financial Product Innovations
• Developing a holistic brand experience for your product
• Communicating your product’s value proposition succinctly to extend your overall brand position
• Grabbing the opportunities for co-creation for your brand to engage with customers and the financial performance of your product
• Streamlining your product implementation process for improved results
• Formulating launch and go-to-market strategies that works marvelously
• Justifying your product launch strategy to a range of stakeholders

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  • COMM = Internal Comm (Sales Marketing) + External Comm (PR Marketing)
  • So… the definition for effective COMM for Marketing applies to PR as well! What about CSR? That’s another topic for another time. CNI’s business itself is CSR, in BDP (Entrepreneur Development), Products (Health, Quality, Affordability), and Yayasan (less fortunate) What about Share Price (i.e. Investor Relations)? Secondary. Primary goal of Public Listing was to generate ‘WOM’ excitement for F/L, generate public credibility for Sponsoring.
  • If this is not a achieved, PR/Corp Comm has failed its job. Fair? Not fair? Who cares?
  • Example of successful customer loyalty strategy focusing on Operational Excellence and Product Leadership while maintaining market standard on Customer Service without indulging in it
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • How does the Customer define “Great Experience”? - It depends on their own perceptions. Problem is…this differs depending on the Customer! If you are very good in something that the Customer does not value, it will not improve the Experience.
  • How does the Customer define “Great Experience”? - It depends on their own perceptions. Problem is…this differs depending on the Customer! If you are very good in something that the Customer does not value, it will not improve the Experience.
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • OPTION 1
  • Exercise: Customer Analysis and Market Discipline Determining your Market Discipline
  • Refer to Handout 1: Value Disciplines
  • Each type of Customer will weigh certain attributes higher than others.
  • To Excel – Must be a Leader in ONE of the disciplines but the other two must be at least at industry standard
  • Example: Google USP – Search, Free! Profit Model – Ad revenue MKt Discipline – Operational Excellence Example: Air Asia USP – Budget Profit Model – Lowest Cost, Maximum Seats Mkt Discipline – Operational Excellence
  • Back to IKEA, Apple,
  • Back to IKEA, Apple,
  • Back to IKEA, Apple, Nestle
  • Function: practical – iPod, iPhone, Nokia OS, Waterlife DIY, CNI SC88 Detergent cover, cup with bags stuck on bottom, Aesthetics: looks – mickey mouse shaped Vitamin Pills, Google interface, iPod, Logistics: distribution & storage – IKEA, car boot for MLM,
  • Exercise: Plot what tools you want to use for Branding for your Company. Indicate Gaps where you need to improve or add
  • Exercise: Plot what tools you want to use for Branding for your Company. Indicate Gaps where you need to improve or add
  • COMM = Internal Comm (Sales Marketing) + External Comm (PR Marketing)
  • Innovative Go-To-Market strategies for Financial Product Innovations

    1. 1. INNOVATIVE GO-TO-MARKETSTRATEGIES TO DRIVE FORFINANCIAL PRODUCTINNOVATIONSCase Study, Concepts, and Debatable IdeasKenny OngTakaful IKHLAS Sdn Bhd 1
    2. 2. Branding today… 13th April 2009 •Two Domino’s employees •YouTube •Apology from Domino’s after 48 hours •1 million hits •Twitter: questions on silence •LinkedIn: suggestions by users in forum 2 BusinessWeek, May 4, 2009
    3. 3. TAKAFUL IKHLAS CORPORATE PROFILE• Shareholder : MNRB Holdings Berhad (100%)• Established Date : 18 September 2002• Operational since : 2 July 2003• Takaful Model : Al-Wakalah• Business Portfolio : General and Family Takaful• Number Products : More than 90• Number of Participants : More than 1,800,000• Number of Agents : More than 6,000• Number of Staff : 490• Regional Offices : 11• Paid Up Capital : RM295 million 3
    4. 4. IKHLAS Medical/Health Solution EASY ACCESS TO CARE CLIENT PANEL CLINICS •Panel of 2000 clinics •Processing Bills nationwide •Payment •All major hospitals recognises •Appointment and our GLs removal •Policies & Procedures•Appointment & management of •Tracking Entitlements medical panel IKHLAS •Issues & Complaints •Overcharging & Abuse 1st CLASS SERVICE •MC Verification •Benefit & Procedure briefing Panel GP Clinics •Help Desk •Tri-annual Cost & Utilization Specialist Referral Report & Hospitals •Benchmarking SPECIALIST & HOSPITALS •Analysis & Recommendations Employees •Issuance of GL •Hosp. Bank EMPLOYEES & DEPENDANT Guarantee/Deposit • Claims Submission •Appointment and removal PEACE OF MIND • Tracking of eligibility •Tracking Entitlements •24/7 LOG Issuance • Enquiries & Complaints •Processing Bills •Cashless Admission • Employee benefit materials •Payment •Comments • Unions •Hospital Reports • Abuse of benefits 4
    5. 5. "The digital watch didnt come from established watch companies, the calculator didnt come from slide rule or addingmachine companies, video games didnt comefrom board-game manufacturers Parker Brosor Mattel, the ballpoint pen didnt come from fountain pen manufacturers, and Google didnt come from the Yellow Pages" Bob Seidensticker, Futurehype 5
    6. 6. What’s wrong with Strategic Planning Today?Long-term PlansObjectivesStrategiesEnablersResourcesAlso known as L.O.S.E.R. 6
    7. 7. What’s wrong with Strategic Planning Today?1. Biggest Threats often come from OUTSIDE your normal industry2. Planning from the base of an ‘Existing’ organization vs. zero-based3. Traditional Analysis (e.g. SWOT) based only on known or existing assumptions or knowledge4. Spending too much time in market research and analysis5. Defining the company from a Product/Service perspective vs. Category vs. JTBD (e.g. Coca-cola)6. Wrong Benchmark – already successful vs. what made them successful7. Implementing BSC and PMS to improve Business Model and Strategy8. New strategy, same people 7
    8. 8. Finance Today… $19.90 9
    9. 9. Financial Product Innovation fromNon-Traditional Financial Players • M&A: bar code readers, inventory tracking, location- based deals • App: loyalty card, coupon, NFC, mobile payment at restaurants and cafés • the largest holder of personal savings in the world: $2.1 trillion of assets in yū-cho savings accounts, $1.2 trillion of assets in kampo life insurance services, ¥140 trillion of government bonds. • eWallet (soon) • eWallet – in collaboration with Citibank, MasterCard, Sprint Nexus 4G • Raised $32,000,000 - $10 at a time, via TEXT for the Haiti earthquake 2010 10
    10. 10. Guess Who?
    11. 11. Contents1. Holistic Brand Experience2. Value Proposition3. Brand Co-Creation4. Product Launch 13
    12. 12. BrandingAnd what this means to businesses today 14
    13. 13. The real goal of Marketing and Branding Understanding our role in the whole scheme of things 15
    14. 14. What is the purpose of Marketing & Branding?Ultimate Objective of Marketing:“Get more people, to buy morethings, more frequently, at higherprices.”“Retention and Loyalty are useless ifNo Conversion is happening.” Sergio Zyman 16
    15. 15. What is the purpose of Marketing & Branding?“Retention and Loyalty are useless ifNo Conversion is happening.”“Communication is useless if NoConversion is happening.” 17
    16. 16. What is the Objective?1.Comm = Relationship (something like Dating)2.Comm ≠ Media glitz3.Comm ≠ ATL/BTL/BwTL/ArTL/FTL4.Comm ≠ CSR5.Comm = Get more people, to buy more, more frequently, at higher prices 18
    17. 17. Innovating and Branding the Business Model The biggest and most holistic consideration 19
    18. 18. The McPlaybook* Make it easy to eat Make it easy to prepare • 50% drive-thru • High Turnover • Meals held in one • Tasks simple to learn hand & repeat Make it quick Make what customers want • “Fast Food” • Prowls market for new • Tests new products products for Cooking Times • Monitored field tests*Adapted from: Businessweek , Februrary 5th 2007 23
    19. 19. Retail Adaptation: McDonald’s MenuProduct Variation: – 80% Global, 20% Local – home-style meals (Boston Market)  – burritos (Chipotle)  – coffee (McCafé)  – DVD rentals (Redbox)  – Premium menu items (snack wraps, sweet tea Frappes)  24
    20. 20. Retail Adaptation: McDonald’s Design$2.4 billion to:•redo at least 400 domestic outposts,•refurbish 1,600 restaurants abroad,and•build another 1,000
    21. 21. What is the Business Model?•Google•Tata Nano UVP Cash-Flow Market Model Discipline 26
    22. 22. Business Model: UVP Unique Value Proposition (USP) = Targeted Customer =Core Buying Purpose/ Customer Value Proposition/ Job To Be Done (JBTD) 27
    23. 23. Business Model: UVP“The Product is Not the Product”• What is the customer really buying?• What is the “Core Buying Purpose”? 28
    24. 24. Business Model: UVP1. Insufficient WEALTH2. Insufficient ACCESS3. Insufficient SKILL4. Insufficient TIME 29
    25. 25. Business Model: Cash-Flow Model RevenueAssets Cost Cash Margin Flow 30
    26. 26. Business Model: Cash-Flow Model Cash-Flow Model Examples: Revenue 1. Gillette ShaverAssets Cost 2. IBM and Lenovo 3. GM and GM Finance Cash Flow Margin 4. Google and Ad Revenue 5. McD and Drive-thru revenue 6. SaaS PAYU e.g. Siebel/Salesforce 7. Facebook and Investors 8. Courts and Instalments 9. Kindle Fire and e-Books 10.Celcom and MVNOs 11.Kenya and M-Pesa 12.Banks and Non-Fees vs. Fees 31
    27. 27. What is the Business Model? UVPCash-Flow Market Model Discipline 32
    28. 28. Market Discipline • Features, "They are the most innovative" Product Leadership Benefits "Constantly renewing and creative" • Limited "Always on the leading edge" Range Customer Operational Intimacy Excellence "Exactly what I need""A great deal!" Customized products Excellent/attractive price Minimal acquisition cost and • Solutions Personalized communications "Theyre very responsive" hassle • Customization • Cost Preferential service and Lowest overall cost of • Breadth & • Convenience flexibility ownership Depth Recommends what I need • firm""A no-hassles TCO "Im very loyal to them" Convenience and speed Helps us to be a success Reliable product and service 33
    29. 29. Market Discipline Product "They are the most innovative" •LV Leadership "Constantly renewing and creative" "Always on the leading edge"•Air Asia Operational •Ramly Customer Intimacy Excellence "Exactly what I need""A great deal!" Customized products Excellent/attractive price Personalized communications Minimal acquisition cost and "Theyre very responsive" hassle Preferential service and Lowest overall cost of flexibility ownership Recommends what I need"A no-hassles firm" "Im very loyal to them" Convenience and speed Helps us to be a success Reliable product and service 34
    30. 30. Alignment & Consistency: Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution) 35Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
    31. 31. Alignment & Consistency: Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution) 36Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
    32. 32. Alignment & Consistency: Market Disciplines Product Leadership (best product) Operational Excellence Customer Intimacy (low cost producer) (best total solution) 37Ref: The Discipline of Market Leaders, Michael Treacy & Fred Wiersema; 1995
    33. 33. Alignment & Consistency: Disciplines, Priorities, and KPIsOperationalOperational Product Leadership Product Leadership Customer Intimacy Customer Intimacy Excellence Excellence •• New, state of the New, state of the •• Management by Management by•• Competitive price art products or Fact Competitive price art products or Fact•• Error free, services services •• Easy to do Error free, Easy to do reliable reliable •• Risk takers Risk takers business with business with•• Fast (on Fast (on •• Meet volatile Meet volatile •• Have it your way Have it your way demand) demand) customer needs customer needs (customization) (customization)•• Simple Simple •• Fast concept-to- Fast concept-to- •• Market segments Market segments•• Responsive counter counter of one of one Responsive•• Consistent •• Never satisfied -- Never satisfied •• Proactive, Proactive, Consistent obsolete own and flexible information for obsolete own and flexible information for competitors all competitors •• Relationship and all products Relationship and products consultative•• Transactional consultative Transactional •• Learning selling Learning selling•• Once and Done Once and Done organization organization •• Cross selling 38 Cross selling
    34. 34. Each Discipline Requires Different Priorities & ResourcesOrganization, jobs,skillsCulture, values,norms Operationa Operationa Product Product Customer Customer ll Leadershi IntimacyInformation and Leadershi Intimacysystems Excellenc Excellenc p e p eManagementsystems 39
    35. 35. Each Discipline Requires Different Priorities & Resources Operational Excellence Operational ExcellenceOrganization, •• Central authority, low level of empowerment Central authority, low level of empowermentjobs, skills •• High skills at the core of the organization High skills at the core of the organization •• Disciplined Teamwork Disciplined TeamworkCulture, values,norms •• Process, product- driven Process, product- driven •• Conformance, one size fits all mindset Conformance, one size fits all mindsetInformation and •• Integrated, low cost transaction systems Integrated, low cost transaction systemssystems •• The system is the process The system is the processManagement •• Command and control Command and controlsystems •• Quality management Quality management 40
    36. 36. Each Discipline Requires Different Priorities & Resources Product Leadership Product LeadershipOrganization, jobs,•• Ad hoc, organic and cellularskills Ad hoc, organic and cellular ••High skills abound in loose-knit structures High skills abound in loose-knit structuresCulture, values, ••Concept, future-driven Concept, future-drivennorms ••Experimentation and out of the box mindset Experimentation and out of the box mindsetInformation and ••Person-to-person communications systems Person-to-person communications systemssystems ••Technologies enabling cooperation Technologies enabling cooperationManagementsystems ••Rewarding individuals innovative capacity Rewarding individuals innovative capacity ••Risk and exposure management Risk and exposure management ••Product Life Cycle profitability Product Life Cycle profitability 41
    37. 37. Each Discipline Requires Different Priorities & Resources Customer Intimacy Customer IntimacyOrganization, jobs,•• Empowerment close to point of customer Empowerment close to point of customerskills contact contact •• High skills in the field and front-line High skills in the field and front-lineCulture, values,norms •• Customer-driven Customer-driven •• Variation and have it your way mindset Variation and have it your way mindsetInformation andsystems •• Strong customer databases, linking internal Strong customer databases, linking internal and external information and external information •• Strong analytical tools Strong analytical toolsManagementsystems •• Customer equity measures like life time value Customer equity measures like life time value •• Satisfaction and share management Satisfaction and share management 42 •• Focus on ‘Share of Wallet’ Focus on ‘Share of Wallet’
    38. 38. What does the Customer want? Product/Service Attributes Relationship Image 43* Treacy & Wiersema, The Discipline of Market Leaders, 1995
    39. 39. What does the Customer want? Operational Excellence: Quality and selection in key categories with unbeatable prices Product/Service Attributes Relationship Image Price Time √ Smart Selection √ Shopper Quality 44* Treacy & Wiersema, The Discipline of Market Leaders, 1995
    40. 40. What does the Customer want? Product Leadership: Unique products and services that push the standards Product/Service Attributes Relationship Image √ Time √ Best Function √ Product Brand 45* Treacy & Wiersema, The Discipline of Market Leaders, 1995
    41. 41. What does the Customer want? Customer Intimacy: Personal service tailored to produce results for customer and build long-term relationships Product/Service Attributes Relationship Image √ √ Service Trusted √ Brand √ Relations 46* Treacy & Wiersema, The Discipline of Market Leaders, 1995
    42. 42. Alignment & Consistency Product Leadership (best product)Operational Excellence Customer Intimacy (low cost producer) (best total solution) 47
    43. 43. Alignment & Consistency Apple powerful Product Leadership products, premium (best product) pricing, limited range Still Doing well in HP well-balanced Acer super lean 2009-2011 portfolio, mass cost structure, aggressive pricing customizationOperational Excellence Customer Intimacy (low cost producer) (best total solution) 48
    44. 44. Alignment & Consistency: Business Model UVPCash-Flow Market Model Discipline 49
    45. 45. Branding Concept #1: The Product as a Concept The Product is not the Product 50
    46. 46. The “Old” DaysInventR&D Bu i • Ma n ld • ufa c Ma Pro duc turi ng rk et tD Ma ev. rke Se l t ing l Sal e s 51
    47. 47. The “New” Days Invent R&DManufacturing Build Marketing Market Sales Sell 52
    48. 48. Marketing 101 PlaceProduct 4Ps Pricing Promotion 53
    49. 49. Marketing & R&D Logistics/ Place TechnologyFeatures TargetProduct 4Ps Pricing Promotion Brand 54
    50. 50. Marketing & R&D Target Price FeaturesBrand Promotion Product IKEA Apple Place Nestle Logistics/ Asus Technology 55
    51. 51. R&D Today → RD&D• Garnier• Digi Design Point 1: Designed to SELL Design Point 2: Before-After R&D 56
    52. 52. R&D Today → RD&D• Research, Development & DESIGN 1. Features 2. Benefits 3. Differentiation 57
    53. 53. R&D Today → RD&D• Research, Development & DESIGN 1. Function 2. Aesthetics 3. LogisticsDesign Point 1: Designed to SELLDesign Point 2: Before-After R&D 58
    54. 54. Branding Concept #2:Understanding the Consumer 59
    55. 55. Go-To-Market: Different Customers, Different Methods Self Reliant Need Help Seek Searchers CollaboratorsChange Seek Streamliners DelegatorsStability 60
    56. 56. Go-To-Market: Different Customers, Different Methods Self Reliant Need Help Seek Searchers CollaboratorsChange •touch and feel •‘first’ to know •Talk to Seek technicians/experts Streamliners Delegators •pros and cons, trends, lotsStability of info •Offer choices •Online resource •innovations, new stuff 61
    57. 57. Go-To-Market: Different Customers, Different Methods Self Reliant Need Help •Minimize risk •Standardization and Seek consistency (routines) Searchers Collaborators •Wants systems to followChange their habit Seek Streamliners DelegatorsStability 62
    58. 58. Go-To-Market: Different Customers, Different Methods Self Reliant Need Help•Treats Store Personnel as Seek consultants Searchers •Pilot projects, process CollaboratorsChange improvements •Co-discover new Seek applications for existing Streamliners business/products DelegatorsStability coaching and •Ongoing value-added services 63
    59. 59. Go-To-Market: Different Customers, Different Methods Self Reliant Need Help Seek Searchers CollaboratorsChange choices •narrow •Pre-package, pre-select Seek (default) Streamliners •Make it easier to renew DelegatorsStability to cancel than •Focus on a specialty (niche)•Honesty, reliability, Trust 64
    60. 60. Men vs. Women: Getting Dressed
    61. 61. Men vs. Women
    62. 62. CNI: Basket Analysis 67
    63. 63. Concrete vs Abstract Mindset Kelly Goldsmith, Jing Xu, Ravi Dhar, MIT Sloan Review, Fall 2010Abstract Broad and general Over- arching Purpose SharedConcrete Product Attributes68
    64. 64. Concrete vs Abstract Mindset SharedAbstract Product Attributes Execution or Usage purpose Lower level detailsConcrete Kelly Goldsmith, Jing Xu, Ravi Dhar, MIT Sloan Review, Fall 2010 69
    65. 65. Mindset vs Basket Size Variety of Related but Different Product Categories, Distant Future Abstract 70
    66. 66. Mindset vs Basket Size Products Similar enough to Substitute one another, Immediate Use Concrete 71
    67. 67. Manipulating Mindset to Basket Size • Promotions “Overarching Purpose” : Oral Care  Abstract • “Simple Purpose”: Clean Teeth  72
    68. 68. Manipulating Mindset to Basket Size • Promotions: Individual and Unique benefits  Concrete • “Overall Purpose”: Quench Thirst  73
    69. 69. Color PsychologyCultural Variations; white remind us of something= marriage (western) = familiardeath (China). Purple = e.g. blue = calmdeath (Brazil) Yellow = Children = Brightsacred (Chinese) = Primary Colors e.g.sadness (Greece) = toys, clothes andjealousy (France) childrens books Red , Orange = Young = bold colors; to eat quickly and older = subtle palettes. leave carpeting to influence patterns of travel 74
    70. 70. Target: Decision Chain Again: different type,Influencer different strategy Buyer User 77
    71. 71. Customer Types vs. Messaging Customer Types Your Products/ServicesHand brake Expandables Postponables Essentials Surviving Treats Well OffDon’t Care 78
    72. 72. Customer Types vs. Messaging Your Products/ServicesEssentials Treats Post- Expan- ponables dables•Necessary •Indulgences •Needed or •Unnecessary •Survival •Justifiable desired •Unjustifiable•Well-being •Can be put off 79
    73. 73. Customer Types vs. Messaging: ExampleCustomer Types Essentials •PriceHand brake •Smaller Pack •Private Labels Surviving •Low-cost ‘Value’ products •Fighter Brands Well Off •Less Variety/Customization •Immediate cash backDon’t Care 80
    74. 74. Branding Concept #3: RightTools at the Right Time with the Right Audience The power of targeted branding communications 81
    75. 75. 82 1. Ea Ne to rly ed ne try Ad to a p u ) o t ro tra gro pter trac3. If company does not d l u 2. The Mass market will uct an p (w t thinnovate or has weak s d n firs illi e follow once they see ich t vi ngretention plans, early adopters joining e a customers will leave te) rou w fe’ ‘sa p ne fer g u pre takin ct ( du t to • “Crossing the Chasm” pro istan s Re Market Penetration Overview
    76. 76. Market Penetration Overview 83
    77. 77. The Right Tools for the Job Personal (exp)Quality/Intensity of Communication Personal (info) Mass Traditional, In- home, Out-Of-Home Impersonal Mass Unconventional (info) Mass Online Individual Mass Reach of Communication 84
    78. 78. The Right Tools for the Job Personal (exp)Quality/Intensity of Communication Mass Targeted Conventional Personal Mass Targeted Online (info) E.g. Annual Reports, Analyst Briefings, IR Roadshows, IR Website Impersonal (info) Individual Mass Reach of Communication 85
    79. 79. The Right Tools for the Job Personal Contests (exp) One-on-OneQuality/Intensity of Communication Personal Individual Targeted Conventional (info) Individual Targeted Online Impersonal (info) Individual Mass Reach of Communication 86
    80. 80. The Right Tools for the Job Personal Experiential Marketing (exp) Geo-Marketing (LBS)Quality/Intensity of Communication Personal (info) Impersonal (info) Individual Mass Reach of Communication 87
    81. 81. Experiential Marketing: Example
    82. 82. Experiential Marketing: Example• Opened first café in midtown New York.• It serves coffee in a pleasing environment, – comfortable lounge – read the financial newspapers – watch on plasma screens – FREE Internet• Customers can’t perform financial transactions in the Café. – > $200 million new accounts and mortgages < 1 year• Starbucks-like prices for coffee, tea, biscotti, and other pastries. 89
    83. 83. Location-based example 90
    84. 84. Geo-Marketing example:O2, Starbucks, L’Oreal • Six-month trial • Placecast’s geo- fencing technology • 1,500 areas offering deals. • Opt-in • Gender, age and general interests. • Receive Special deals 91
    85. 85. Innovation Issues & Challenges for the Financial Industry 92
    86. 86. Issues & Challenges for Innovation in Financial Sector• Short-Term financial measures & expectations• Incremental innovation - highly commoditized industry• Heavily regulated - limiting what new products can be offered, to who you are even allowed to communicate with• Security - data leakage, PDPA• Protection and the management I.P. - especially due to technology advancements• Non Financial Intermediaries (NFIs) (e.g. retailers, telecom providers) providing financial services. 93
    87. 87. Non Financial Intermediaries (NFIs) examplePeer-to-Peer LendingZopa (http://uk.zopa.com/ZopaWeb/) 1. eliminating traditional financial institutions for obtaining credit. 2. Target: self-employed, project-based or freelance workers that are not in a full time employment with irregular incomes and lifestyles 3. Can borrow smaller amounts over shorter periods and are not charged additional fees if they repay early 94
    88. 88. Non Financial Intermediaries (NFIs) examplePeer-to-Peer LendingLending Club (http://www.lendingclub.com/) • Cheaper and faster than traditional consumer credit (7.88% vs. 13%) • Proprietary assessment of customer reputations within their social networks • Tracking and publishing the history of every Loan • Publishes the formula risk and interest algorithm • Default rate is low 2.7 % (vs. 5.5 % for prime credit cards) 95
    89. 89. Peer-to-Peer Lending Business Model Revenue model Cost model 96
    90. 90. Potential Tools for Innovation in the Financial Services sector• Social Networks - new financial services, increase interaction with customer, collect new ideas from outside• Dedicated “Innovation Department” or “R&D Department”• Think broadly about what their target customers are trying to get done• New technologies – Mobile, Social, Cloud, GeoMarketing etc.• Under-served Markets, New Segments on Value-Chain, Micro Niche segments• Academia partnership• Corporate venture capital fund 97
    91. 91. Future of Financial Services Sector• Just take an image of the front and back of the check.• No annoying deposit slip required• Immediate confirmation of deposit transaction.• It’s Free 98
    92. 92. Future of Financial Services Sector• Just slide the Money Bar to transfer funds between accounts. 99
    93. 93. Future of Financial Services Sector • Competitive processing fees and NO monthly rental • Both the app and the reader are free • Send email or SMS receipts to the customer • Photo identification system for security 100
    94. 94. End Notes 101
    95. 95. Which Company?American Customer Satisfaction Index (ACSI)• 64 out of100-point scale: lower than IRS (Tax)• 2nd last among 30 companies surveyed• Lowest 5% among 223 companies surveyed• Bottom 5% of all measured private sector companies• 500 million customers 2010 American Customer Satisfaction Index (ACSI) E-Business Report 102
    96. 96. Which Company?American Customer Satisfaction Index (ACSI)• 64 out of100-point scale: lower than IRS (Tax)• 2nd last among 30 companies surveyed• Lowest 5% among 223 companies surveyed• Bottom 5% of all measured private sector companies• 500 million customers 2010 American Customer Satisfaction Index (ACSI) E-Business Report 103
    97. 97. Popularly Unpopular Popularity ≠ Affection 104
    98. 98. Biggest Issue in FinancialProduct Innovation? 105
    99. 99. “With great power comes great responsibility” Uncle Ben, Spiderman 3 106
    100. 100. What is the purpose of Marketing & Branding?Ultimate Objective of Marketing:“Get more people, to buy morethings, more frequently, at higherprices.” Sergio Zyman 108
    101. 101. Thank You. soft copy of slides:http://totallyunrelatedrandomanddebatable. blogspot.com/

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