Banks perspectives in 2013-2016: strategy, marketing, products and channels, consumer experience andinnovation.We invited several experts from different countries, whose activities are related to innovation in the bank todiscuss the future of the financial industry, promising strategies and challenges for banks in 2013, among theguests - author, scientist, designers, strategic consultants, futurists, directors of consumer experience, CEO, andvice presidents of banks.Experts:Bruce Cahan, USABruce Cahan is creating GoodBank™(IO), a high-transparency, impacts-aware bank built in and for theInformation Age. Bruce is a serial social entrepreneur, Ashoka Fellow, Stanford Visiting Scholar (School of Civil &Environmental Engineering) and Stanford CodeX Fellow (Computer Science and Law Schools‟ Center for LegalInformatics). Beginning in 1991, Bruce pioneered capital investment strategies for governments to create opengeospatial data now used in Google Maps and similar web services. He provided geospatial data and logisticalsupport as an emergency responder at the Command Center in NYC after the 9/11/01 World Trade CenterAttacks. In March 2012, Bruce organized TedxNewWallStreet in Silicon Valley to re-imagine banking built in andfor the Information Age.Brett King, USAAuthor of Bank 3.0, Founder of Movenbank.Brett King is the bestselling author of "Bank 3.0: Why Banking Is No Longer Somewhere You Go, But SomethingYou Do”, “Bank 2.0” and the founder and CEO of New York-based Movenbank, the world‟s first direct mobile-onlyretail bank. He was voted American Banker‟s BTN Innovator of the Year in 2012 and is a strategic advisor on thefuture of financial services to clients such as HSBC, Citigroup, Commercial Bank, UBS and Emirates NBD.Roger Peverelli, The NetherlandsAuthor of “Reinventing Financial Services”Roger Peverelli is a partner at VODW, a leading strategy consultancy operating out of The Netherlands, andspecialised in customer focused strategies in financial services. Roger co-authored the international best-seller„Reinventing financial services„. What consumers expect from future banks and insurers‟ available in 5 languages.Throughout his career he concluded assignments blue chip financial services companies across the globe; in retailand private banking, in wealth management and in life and general insurance. Roger has worked in virtually everyEuropean country, the Americas, the Middle East and Asia.
Chris Skinner, UKBlogger № 1 in the world of finance.Chris Skinner is best known as an independent commentator on the financial markets through the Finanser(www.thefinanser.com) and Chair of the European networking forum the Financial Services Club, which hefounded in 2004. The Financial Services Club is a network for financial professionals, and focuses on the future offinancial services through the delivery of research, analysis, commentary and debate. He is the author of ninebooks covering everything from European regulations in banking through the creditcrisis to the future of banking.He is a regular commentator on BBC News, Sky News and Bloomberg about banking issues.He is a Judge on many awards programs including the Card Awards and the Asian Banker‟s Retail ExcellenceAwards, as well as having worked closely with leading banks such as HSBC, the Royal Bank of Scotland, Citibankand Société Générale and the World Economic Forum.Luc Schamhart, The NetherlandsEMEA Finance (Insurance) Industry Lead.Luc joined Microsoft in 2007 as the Partner Industry Manager for FSI based in Amsterdam moving to FinanceIndustry Development Manager role the following year. He has leveraged his insurance and banking expertiseworking with customers such as ING Group, ABN AMRO, Rabobank and many others. Luc Schamhart brings adeep level of industry experience with over 20 years working in the financial services sector. He is dedicated tobring innovative Microsoft solutions to the large financial services. Prior to joining Microsoft, Luc spent 18 years atIBM Corporation, managing the FSI (software) business for their Global Financial Services Accounts.Jin Zwicky, SingaporeVice President, Experience Design at OCBC Bank.Jin is a customer experience designer bringing common sense, simplicity and beauty in financial services. She iscurrently a VP in Group Customer Experience at OCBC Bank, a leading Singaprean bank. She researches anddesigns customer experiences of retail and premier banking businesses and drives business success in bankingproduct development.Before joining OCBC Bank, she spent 10 years in Switzerland as a senior manager in customer experience atCredit Suisse Private Bank setting customer experience strategy in key markets and designed experiences acrosscritical channels and key processes of private banking customers.
Harriet Wakelam, AustraliaSenior Customer Experience Designer, National Australia Bank.Harriet is a customer experience design specialist at National Australia Bank‟s Immersion and Design Centre. Sheapplies apply design thinking and service design practices and approaches to gather, embed and apply customerinsights to financial products and services. Her role requires the design, use and development of tools that embedcustomer experience within product and services.Her background includes includes user experience design, multimedia development, ethnographic research anddesign, design leadership, the development and application of digital strategy for commercial and governmentenvironments, management of digital content services and innovative approaches to building customerexperiences.James MoedFinancial Services Lead, IDEO London.IDEO is a global design firm that takes a human-centered, design-based approach. James Moed is a leader ofIDEO‟s work in financial service design across Europe, he advises clients and design teams, combiningobservations of human behaviour with inspiration from other services, new business models, and emergingtechnologies.James‟ work with clients like Visa, Generali, Swiss Life, and Bank Audi, builds on cross-sector insights drawn fromexperience in energy, health care, luxury, and consumer goods. He speaks and writes frequently about theintersection of design and business, facilitating conversations on innovation with students, startups, andexecutives.Николай Чумак, УкраинаFounder and CEO of IDNT.He is the founder and strategic director of IDNT, which during 10+ years has developed and implements formatsand concepts for Retail Banking, Mass Affluent and Private Banking offices.IDNT works with CIS-region banks and has some projects with European countries. Moreover, IDNT has projectsin retail, allowing it to bring ideas and technologies from the retail to the banking sphere. IDNT considersfunctional design & concepts as one the most important factors of customer experience. Mykola studied functionaldesign and banks concepts in London, Hong Kong, Singapore and Tokyo. He is a constant speaker on conferencesdevoted to Retail Banking, Private Banking & Wealth Management, Retail-Marketing in CIS countries; and theauthor of numerous publications in professional and business magazines.Do you expect any changes in the bank marketing strategies in the nearest future? If so, whichones? If not, why?
Brett KingThe reality is that over the next 3-5 years mobile will not only continue to dominate changes in retail positioningand consumer behavior, but will become increasingly accessible to all parts of the economy. By the end of 2014,smartphone adoption is expected to reach 80% of the population in markets like the US, UK, Australia, Singapore,Hong Kong, UAE, and other developed economies. But this is not limited to developed economies and the massaffluent or middle and upper-class.By 2016 low-end smartphones will cost less than $20, and Gilder‟s Law dictates that basic Internet access willcome bundled in your monthly plan at no additional cost. Today, Internet access via mobile devices has alreadysurpassed wired internet access. Put this all together and by the end of the decade 80-90% of the world‟spopulation will have access to the Internet via a smartphone.This will fundamentally change how retail banking and payments work in our economy.How banks change their attitude to online banking in the nearest future? Which one gets moreattention – online business (products) or physical branches? Luc SchamhartIt all will be multichannel, the physical branches will not disappear will be less in number but will definitely bethere in the future, where the focus will be on customer engagement instead of transactional, face 2 face contactwill be important in the future as well. The online business will increase tremendous, especially if you add theonline mobile banking possibilities. Personal financial management will be the key feature in adding additionalservices in online banking. Brett KingFor 60% of the world‟s population that today does not have a bank account, their mobile phone will likely be theirvery first banking experience. In markets like Kenya and the Philippines, the majority of the population has hadtheir first electronic payments experience via their phone, and their first debit card or account was simply abalance carried on their phone. The fastest growing use cases for mobile in emerging markets like these havebeen payments and remittances. In markets like Kenya, this has changed the day-to-day flow of cash in theeconomy. The same will soon be true for India, China, Indonesia and other such emerging markets.By 2020 the world‟s bank account will indistinguishable from the functionality you find on your mobile phone. Yourmobile device will allow you access to your money (in the form of an available balance), send and receive money,pay at a store, pay online and to exist fluidly in the world of commerce. In the past we have tended tocharacterize our bank account by its physical form factor – in the old days a passbook was our „bank account‟,then in the 80s it was our cheque book, and today our debit card (attached to an online account number) is howmost of us do our day-to-day banking. In the near future, however, banking will besimply dominated by themobile phone. James MoedRather than cut investment in branches in favour of web and mobile (or vice versa), banks must learn to use theirstaff and spaces to teach customers, so they feel confident using digital tools. This means fewer traditional tellers,and more tech-savvy “coaches.” Hopefully, 2013 will be the year that banks stop seeing online and branchchannels as trade-offs and start seeing them as complements in a single customer experience.What kind of plans should banks avoid during next several years?Explain your answer, please. Bruce CahanCommercial banks operate as and in a culture of "herd mentality" and "peer pressure" The limits of herd and peerknowledge have been well-illustrated in banking crises throughout the ages, including the most recent
bank scandals, each of which pivot off of a camouflage or information asymmetry. In the Digital Age, banks builtto "hide" mistreating clients or client funds will ultimately be found out, fined and reduce theirbrands reputaitional value. Thus, continuity of banks planning to maintain “status quo”/business as usual will beat odds with old and new banks who promote designs for products, pricing and services that reallocate value andmeaning to the customer, not the bankers. Banker compensation - bonuses - that emphasize short term thinkingare no longer practical, nor were such compensation schemes ever truly practical. Banker compensation shouldreward stewardship of bank capital, and global impacts, and personal improvement in character, mental andphysical being. Roger PeverelliAll projects that center on technology for technology sake. The only real purpose of technology is to improvecustomer experience. And if we can combine that with even more efficiency that is perfect. CRM is a greatexample. In many Russian and CIS banks CRM is still in its infancy. While CRM offers so many benefits to addresscustomers needs better and to create much more efficiency on the marketing side.Which kind of new approaches or ideas, insights concerning bank strategies and tactics whichappeared in 2012 will be actual in the 2013-2015? Roger PeverelliMobile will really take off. The penetration of the smart phone is already huge and ever increasing, but when youlook at what banks are doing with it, we are just scratching the surface. Banks focus on replicating currentprocesses on mobile, while mobile gives us the opportunity to become part of life of our customers. The mobilephone is the only appliance we have with us 24/7, every day of the year. We often refer to the horseless carriagesyndrom. The first car looked like a carriage without a horse in front of it. Basically because we could notimmediately imagine what would be possible. Mobile banking services are still in that stage. Jin ZwickyI am a huge believer the power of design and its impact on business success in banking industry. Design is notonly the final object the way it looks and feels, it is also the process of creating that object or experience. Thequality of the design process has the direct impact on the result. When banks understand the value of design andembed design in problem solving, this can bridge banks strategic intent and tactical implementation. Harriet WakelamHolistic thinking. The death of multi and omni channel. Colllaborative thinking, new partnerships, an acceptanceof iterative and complexity thinking. Customers as partners. Respect for not knowing. Banks as learningcultures. Brett King2013 will be a big year for mobile payments. Many of the mobile wallet projects currently in development will hitthe market. The first mobile only banks, such as Movenbank, will hit the market with products and interactionsdesigned around the mobile. ISYS will launch, and other players like Google Wallet, PayPal and Square will duke itout for merchant dominance in mobile payments space. NFC deployment will start to be highly visible and moreand more banks will announce PayPass and v.Me (Visa) deployments to capitalize on this emerging trend. Whenwe look back on 2013 we‟ll recognize it as the year the biggest players realized mobile was the game changer itwas cracked up to be.By 2015-16 mobile banking use will dominate day-to-day banking interactions in most developed economies,being the preferred channel for the majority of customers. However, this is unlikely to have a significant effect onInternet banking utilitzation as tablet computing will still be widely used for managing day-to-day portfolios, billpayments and transfers. In fact, comfort levels with digital interactions will rise such that consumers will managemost of their banking relationships entirely digitally with more than 60% of retail banking revenue coming throughnon-human channels at this stage. This will put extraordinary pressure on branch systems.Initially many banks will move to reduce their branch network by up to 20-30%, retooling and retasking remainingbranches to focus purely on sales and service as transactional activity moves digitally. Branches that remain will
either be brand flagship and showcase stores, or smaller footprint stores designed to still support sales and servicemetrics without the large network expense. Financial analysts watching bank stocks will start to discount retailbanking brands who aren‟t aggressively dealing with excess capacity in the branch network. For the first time we‟llsee stock markets penalize banks for having branches. Bruce CahanEvery commercial bank in 2012 has, or has designs for, a mobile app, cross-platform (AppleiOS, Android, etc.) Similarly, most commercial banks have a social media presence, on Facebook, Twitter, Google Plus,and their local and language equivalents. Other trends include the annual CSR (Corporate Social Responsibility)reporting season, the cleantech, womens and other diversity subgroup and the banks foundation‟s publicrelations efforts that improve the lustre of the banks brand and its capacity to recruit and retain customers andbankers. Some of the largest names in global commercial banking have taken their lumps in 2012, paying recordfines for money laundering, interest rate manipulation, and mortgage securities fraud. What was bought for suchrecord fines? Nothing, unless the culture of teaching bankers to be bankers, changes. What I deeply hopehappens is that the Industrial Age of rogue bankers thinking primarily about whats best for themselves and theircareer and bonus prospects, will sunset, and that we will see a Digital Age of bankers who return to a morestewarding role, safeguarding bank capital and focus on the customers success as paramount.