1. www.mercer.com.au
Looking to the future
How best can a financial service be
provided in the digital medium?
Innovate 08
David Anderson
Outsourcing Business Leader, Asia Pacific
7 August, 2008
2. 1Mercer
Today’s agenda
The dim and dark ages: our recent past
– Can you remember when…
The global state of play right now
– Airlines
– Music
– Financial services
Facts about the end consumer
What’s in store for the future?
– Empowered consumers engaged with their finances through the digital medium
3. The dim and dark ages
How time, technology and function
have moved on quickly
4. 3Mercer
Dial telephones
9 till 5 shopping hours (till midday on Saturday and closed Sunday!)
Travelling on anything with a paper ticket
Using a public pay phone
When PC’s were a novelty – and came without colour screens!
A world without the internet – no email, Google, yahoo, YouTube,
facebook, MySpace or LinkedIn
A time without mobile devices or communication – no phone, iPod,
SMS text, Blackberry or GPS
Can you remember…
5. 4Mercer
Endowment policies and group ‘key man’ plans
Superannuation and insurance sold and serviced only through an
agent
Deposit administration and the advent of unit-linked, or investment-
linked super
Banking only through the branch - 10 till 3
Passbook savings accounts
Bankcard
Loans negotiated only with the bank manager
Shares purchased in person through a stock broker – T+5 settlement
The introduction of the ATM
And for financial services…
7. 6Mercer
The airline industry
Mass expansion and transformation
From the past…
Three days and seven stops from
SYD to LHR
Paper tickets purchased over-the-
counter at the airline
Check-in counters and queues
Random seat allocation
Frequent flyer points
Sole source carriers
Pre-recorded movies and news
Airline issued boarding passes
No in flight communication
To the present…
22 hours and one stop from SYD
to LHR
eTickets and online flight
purchases
Quick check self serve kiosks
Select your seat in real time
Online loyalty stores
OneWorld and Star Alliance
Foxtel digital live to air!
Online remote check-in
In air text, voice and internet
8. 7Mercer
From the past…
Vinyl records and 8-Track tapes
In store purchases
The vinyl then CD jukebox
Pre-packaged album content
Sorting through storage shelves
Records in milk crates, stacked
cassettes and CD storage towers
Physical fulfilment and fixed
location play
To the present…
Cassettes, then CDs, then MP3
Anywhere, anytime online sales
iTunes library
Burn your own tracks on demand
Online store personalised profile
Thousands of songs, videos,
pictures, TV shows, games and
applications in your pocket!
Mobile fulfilment and play
The music industry
From the physical to the virtual
9. 8Mercer
The financial services industry
Aggregation and integration
mint.com, wesabe.com,
covestor.com
Get a complete picture of your
personal finances, including fees,
all in one place
Credit cards, bank accounts,
loans, investments, mutual funds
Highly personalised budgeting
tools - set goals & track progress
Email and text alerts
Compare accounts to identify
potential savings
Online communities – ask
questions and share advice
10. 9Mercer
The financial services industry
Mobile banking is here
Check account balances, view
mini statements, transfer money,
pay anyone, receive account
alerts
‘Bank in your pocket’ – any hour
of the day and no need to visit a
branch
Lower cost per transaction, reach
larger customer base
ANZ M-banking (Feb 2008):
encrypted data allows fund
transfer via mobile
NAB text banking (Apr 2008):
account balances via SMS
11. 10Mercer
The financial services industry
Buy and sell shares on your iPhone
Access live market news and
movements
View your holdings
View the latest stock prices
View company details, news,
announcements and charts
View the daily market report
View your stock watch lists
View your outstanding, executed
and cancelled orders
Buy and sell stocks in real time
View market depth
13. 12Mercer
Always on the go, time poor
Juggling work, study and family life
Worried about budgeting, mortgages, petrol, price of groceries
Looking for the best deal with minimal effort
Trying to manage a multitude of accounts: mobile, home phone,
broadband, credit cards, bank accounts, personal loans, home loan,
bills
Concerned about having enough superannuation and insurance
Increasingly switched on to technology
Want a provider they can trust
Consumers are time poor
14. 13Mercer
On demand self service
Consumers want a choice of how they access service (online, chat,
email, phone, call back, SMS)
‘Try before you buy’ – online product comparisons
Sophisticated personalisation of content
Information that finds you – when you need it
Gmail – adverts and content based on personal profile
Consumers co-creating products and services to suit their needs
Consumers want service on call: at their fingertips; and in their pocket!
A desire for personal, immediate fulfilment
15. 14Mercer
They now live in a wireless, digital reality
Internet, email, mobile phone
Social networks, video, audio streams, online calculators and projection tools,
interactive webinars, blogs, Bluetooth, forums, RSS, wikis, wii
Wireless hyper-connectivity
– Anywhere, anytime connectivity and access to information
– Greater reach to customers
– GPS
– Video messaging
– Hot spots and Bluetooth pairing
Accessibility, flexibility, versatility
Real-time on demand personal information
Smart phones as a new push/pull service platform
16. What’s in store for the future?
Financial services in a wireless,
digital world
17. 16Mercer
Real time video calls and financial coaching
Online financial planning programs such as C2MF (see to my finances),
integrated with BPAY, e-banking, mobile communication and straight through
processing
Electronic and voice activated disclosure documents
Your super, insurance, banking and stock details aggregated on one mobile
device – and you can transact in real time
Funds transfer and investment switching on your TV - your financial records
on YourTV. Monitor your investments, switch options, transfer cash and see
graphical representations of past (or projected future) performance
Asking a friend or colleague ‘how much is your super worth right now?’
A nation of educated, empowered and engaged financial services consumers.
World leaders in savings, again…
One-to-one service through a combination of
converging digital technologies
Imagine this…
