EFMA Journal "Going Digital: Attracting and retaining customers"

1. Interview
Aurelio Montinola
and Raul Dimayuga from the
Bank of the Philippine Islands
Special report
Making profit from
the SME segment
Efma Journal No. 236
January/February 2013
THE DIGITAL BANKING ISSUE: HOW FAR WILL
DIGITALISATION GO IN FINANCIAL SERVICES?
Plus: A focus on Australia and New Zealand – Roundtable on attracting and retaining customers – and much more…
JOURNAL

2. 1
Goingdigital
Welcometoissue236oftheEfmaJournal.
Tostartoffthenewyearwe’refocusingonatopicthatisundoubtedly
akeyareaoffocusforthevastmajorityofretailfinancialservices
organisationsatthemoment–digitalbanking.
Indeed,asmobiletechnologybecomesubiquitous,andmoreand
morepeoplefindithardtothinkoflifewithouttheinternet,customers
aredemandinganincreasingnumberofdigitalchannelssothatthey
caninteractwiththeirbankwhereverandwhenevertheychoose.Our
coverstoryonpage19highlightsthekeytrendsandchallengesinthe
digitalbankinglandscape,andprovidesinsightintothestrategiesof
themostsuccessfulretailbanksatthemoment.
Inthisissuewealsohaveaveryinterestingroundtablearticle
onpage38,whichgathersopinionfromsomeoftheleading
authoritiesinfinancialservices.Together,theyaddressthetopicof
attractingandretainingcustomers.Onpage44wehaveaspecial
focuspieceonAustraliaandNewZealand,andonpage55
there’saroundupofarticlesthatlookatthechallengeofproviding
betterservicestoSMEs.Wealsohaveaninterviewwithtwosenior
spokespeoplefromtheBankofthePhilippineIslands,apieceon
thefutureofcash,andmuchmuchmore.
Ihopeyouenjoythisissueandwishyouawonderful2013.
PhilippeWallez
EditorialBoardChairman,Efma
GeneralManager,PrivateBanking,INGBelgium
FOREWORD
ForEfmaSarl:
Publisher
¡¢£¤¥¦§¨©¡£©
Contributors
¤¥¥¦¡£¤¨¢¤
!£¤© ¡¢¤¨££¤©¢¤¡¨¤
ForTudorRose:
Editor#
¤$©¡%¡¨©
Editorialteam
¨'¨¥¥¡
#
¡'¨£¢'¨£(¢¦¨©
¡£¨)¥¡$¨©©(¨¡§$¨%
GraphicDesign
¡'¤©!£¥¨0£¡¡
#
¤''%(¤$¨'¢¡
ProjectManager
(¢¡£¢1¡¤£'£¢¨£
PublishingDirector
2'%34¨¢
EDITORIALBOARD
Chairman
PhilippeWallez
GeneralManager,PrivateBanking
INGBelgium
ChristianCassebaum
MemberofBoardofManagement
AllianzBeratungs-undVertriebs-AG
DrissMaghraoui
DirecteurDistributionProduitsetMarchés
AttijariwafaBank
DamienDePonthaud
HeadofCustomerExperience
AXAGroup
MateoRodriguez-Braun
SegmentsDevelopmentDirector
BancoSantander
TobbiasSchloemer
Director,GlobalMarketingCommunications
DeutscheBank
JanHendrikKraus
GeneralManager,GroupStrategy
EmiratesNBD
MarkusDiemayer
HeadofRetailBoardOffice
ErsteGroupBank
FrancoisDuchesne
DirecteurPrincipal,Intelligenced’AffairesetDistribution
FédérationdesCaissesDesjardinsduQuébec
MuratAtalay
RetailBankingMarketingDivisionHead
Isbank
PatrickKindt
MarketingDirector
KBCBank
MarcAlaurent
DirectorofPayments
LaSer
TorbenLaustsen
DeputyHeadofBankingDenmark
NordeaBank
PhilippeCheyssial
DirecteurduMarketingClientsParticuliers
SociétéGénérale
DivieshVithlani
HeadofCompetitiveIntelligence
Swedbank
Illustrations
!£§¡5¤$
Printedby0£6¨£¨¢¤6£¤¨£
78779$@A©£AB¤£¨¡
3((BC7DD7A8EF9
EfmaJournalispublishedbyTudorRoseonbehalfofEfma
EfmaTudorRose
8,rueBayen,75017Paris,FranceTudorHouse,6FriarLane,LeicesterLE15RA,UK
Tel:+33147425272,Fax:+33147425676Tel:+441162229900,Fax:+441162229901
info@efma.com,www.efma.cominfo@tudor-rose.co.uk,www.tudor-rose.co.uk
GHIPQRSTUVWXXY`abcdYedeYfegVhipUYciScb`dpqrX`sUc`itTUure
dciYegiYcYUtdT`ccegiYYepYigqseg`tUtuSiYTiYruUtuTeUtdv
`tsXqg`tawbecbeYrupbicisipu`tavdsUtt`tavgiwtXiUg`taitci
siTpqceYiYicbeYw`dew`cbiqccbepY`iYwY`ccetpeYT`dd`itSYiTRSTUV
x
betUTediSUscqUXsiTpUt`edUtgpYigqscdTetc`itegbeYe`t
TUurecbecYUgeTUYydiScbe`YYedpesc`feiwteYdV€`ewdepYeddeg
`tcb`dTUaU‚`teUYeticteseddUY`XucbideiSRSTUVWssepcUtseiS
UgfeYc`deTetcdgiedtic`TpXuiSS`s`UXetgiYdeTetciScbepYigqscd
iYdeYf`sedsitseYtegVƒb`XeefeYusUYebUdreetcUyetcietdqYe
UssqYUsuiSsitcetcvtiYedpitd`r`X`cusUtrecUyetSiYUtueYYiYdUtg„
iYiT`dd`itdV…eUgeYddbiqXgcUyeUppYipY`UcepYiSedd`itUXUgf`se
reSiYeUsc`taitUtu`ddqeYU`degbeYe`tV
EfmaJournalNo.236
January/February2013
AreasCovered
WeAimTo
Internetbanking
Mobilebankingandpayment
Personalfinancemanagement
Onlinesalestools
Socialmediabankingand'gamification'
Salesfocusedfront-endsolutionsforservicedchannels(branchandcallcentre)
Developdigitalbankingtechnologytoweb2.0
Turnonlinechannelstocustomerengagementplatform
Maximizeonlinesalesefficiency
Formoreinformation
contactusat
orsende-mailto
www.indgroup.eu
sales@indgroup.eu
Austria,Germany,Hungary,Poland,
Slovakia,Romania,UnitedKingdom
Onlinebankinghasbecome
themostimportantwayto
servecustomers,anditoften
remainstheonlychannelto
sellnewproducts.
Today'sonlineserviceslike
Facebook,Googleor
Pinteresthaveraisedthe
expectationsofonline
customers.Newbusiness
models,fiercecompetitionof
newmarketplayersand
changingcustomer
behaviourmeanthat
adjustingbusinesstothe
neweraisnowmore
importantthanever.
SomeofOurProducts
INDInternetBanking
INDInternetBrokerage
INDPersonalFinanceManager
INDGamificationConcept
INDPortfolioAnalysis
INDOnlineSales
InternetBanking
INDGroupisaleadinginnovatorand
developerofonlineandmobile
banking,PFMandpayments
technologyproductsontheglobal
e-financemarket.Ourgoalisto
evolveonlinebankingtechnologyto
web2.0,turningitintoasalesand
customerengagementplatform.
Accordinglyweputastrongfocuson
superiorcustomerexperience,and
ourproductsaredesignedtoexceed
theexpectationsoftechnology
inspiredusersaswellasto
encouragenon-userstoadoptonline
banking.
TheremarkablegrowthINDGroup
hasexperiencedoverthepastyears
marksatruesuccessstory.
Weprovideproficiencyand
state-of-the-arttechnologytomore
than30banksin15countrieson
threecontinents.
MobileBanking
INDMobileBanking
INDPaymentApp
INDMobilePFM
INDMobileTrading
INDMobileToken
INDMobileBankingPlatform
I
N
D
nnovative
extGeneration
igitalBanking

3. 37EfmaJournalNo.236
Attractingandretainingcustomers
alltheinformationtheyneedthrough
theirmobiledevices.Thismeansnew
customerdemandsforusasabank
–customersexpecttogetanswersto
theirquestionsquicker,andtheywant
tobeabletoreachbankingservices
whileonthemove.
Villaseca:Customersworldwide
arechangingdramatically.Informed
anddemanding,theyarefarmore
pragmatic.Theywanttobetruly
heardandconsidered,andaskfor
realsolutionstotheirneeds.
Whatarethekeychallenges
facingretailfinancialservices
organisationsintermsof
attractingandretaining
customers?
Czuba:Thekeyistobuildup
processesandsystemswhichwill
enabletherealandindividual
customerapproach.Wealsoneed
tobeabletoaccuratelypredict
customerexpectationsandbehaviour.
It’snolongeraboutproviding
blanketproductofferings,butabout
ROUNDTABLE
Howaretoday’scustomers
differentthaninthepast?
Czuba:Verydifferent!This
isbecauseofthechanging
technologicalenvironment,andalso
duetoashiftinclientneedsand
expectations.We’veobserveda
hugechangeinclientbehaviourover
recentyears.Peopledonotliketobe
treatedthesamewayanymore.
Furlan:Ourcustomershaveradically
changedtheirbehaviourinrecent
years:theyhavemoreinformation;
theycomparebankoffers;and,above
all,theyexpectacustomerexperience
similartowhattheyexperiencewith
retailersandtelcos,bothintermsof
flexibilityandintermsofmulti-channel
capabilities.Theyexpecttobeable
togetintouchwiththebankthrough
differentchannelsinaneasyway,and
theyappreciatebeingabletovisitthe
branchwhentheyprefer.Furthermore,
thecrisishasmadetheirbehaviour
change:iftheydon’tfindagoodoffer,
ortheyarenotsure,theydon’tbuy.
Lindell:Ourcustomers’basic
needsremainthesame,butthe
newenvironmentmeansthattheir
expectationsaremuchhigherthan
before.Theywanttobeabletoaccess
theirbankwhereverandwhenever
theywant,mixingandmatching
channelsinawaythatsuitsthem.
Torstendahl:Perhapstheclearest
changeisthatourcustomershave
becomemoreandmoremobile.
Privatecustomersaswellas
entrepreneursareusedtoaccessing
Thecustomer’s
alwaysright
Intoday’svolatileeconomy,effectivelyattractingandretainingcustomersisfundamentalto
success.LindsayJamesspeakstofivebankerstofindoutabouttheirapproachestowinning
andmaintainingashareofthecustomer’swallet.
THEPANEL
DavidVillaseca
Globalheadofcustomer
management,BBVA
RickardLindell
Generalmanager,Head
ofsegmentationandvalue
proposition,Nordea
LauraFurlan
Headoftransactional
products,IntesaSanpaolo
“It’snolongeraboutprovidingblanketproduct
offerings,butaboutdeliveringabundleof
dedicatedservicesandproductswhichwill
makeourclients’liveseasier”
KrzysztofCzuba,AliorBank
KrzysztofCzuba
DeputyCEO,
AliorBank
MatsTorstendahl
Headofretailbanking,
SEB
deliveringabundleofdedicated
servicesandproductswhichwill
makeourclients’liveseasier.
Furlan:Fromanacquisitionpoint
ofview,thekeychallengeistobe
abletotalkthesamelanguageas
ourprospectcustomers.Itisimportant
tooffertailoredpricepromotions
andanattractiveservicemodeland
productrange,butitisalsorelevant
tomonitortherankingonthesites
wherepotentialcustomersnavigate
andtofinetunethewordingandthe
toolsapotentialcustomermaycheck
inordertoverifywhethertheofferfits.
Morethanthat,it’saboutsatisfying
theexistingcustomerbaseinorderto
generateapositiveworldofmouth.
Lindell:Thebasicfundamental
principlesofbankingarechanging,as
istheregulatorylandscape.And,at
thesametime,customerexpectations
arehigherthanever.Weneedto
adapttoallofthis.Successtoday
isverymuchaboutdistributionand
makingbankingeasyforcustomers.
Torstendahl:Hardcompetitionis
probablythebiggestchallenge,with
somanydifferentplayersonthemarket
today.Thetraditionalwholesalebank
isjustoneofthealternativesandwe

4. 39
ROUNDTABLE
EfmaJournalNo.236
Attractingandretainingcustomers
arenotjustcompetingintraditional
waysanymore.Otherbrandswitha
connectiontootherproductareasare
attractivealternativesforthecustomers,
andthereforebuildingloyaltyiseven
morecrucialthanearlier.
Villaseca:Ourbusinessfocusis
buildingfinancialandnon-financial
solutions,basedonadeeplocal
understandingofcustomer’sneedsand
thelatesttechnologies.Thesecond
challengeistoberelevantforeach
customer,actualorpotential,whether
aHNWIoraSMEoracompany.The
organisationneedstoaligneverything
inordertoworkforabetterfuturefor
eachcustomer,bothonservicingand
advisingallsegments.
Isaface-to-faceadvisory
approachmoreimportantthan
aremoteone?
Czuba:Itdependsonthe
definitionofface-to-face,because
thetraditionalmeaningofithas
changed.Wedoofferavideo
connectionwithourvirtualbranch,
whichhasbeenwell-received.
However,therewillalwaysbeclients
thatprefertovisitabranch;we’re
justnotsurewhatthebranchwill
looklikeinthefuture.
Furlan:Thecorrectansweris
thatitdepends:itdependsonthe
customerpreferencesandonthe
specificsituation.Thekeyisthe
abilitytoservethecustomerina
professionalway.Althoughitisa
factthatmanycustomersappreciate
aface-to-faceadvisoryapproach,
especiallyforinvestments,itis
alsoimportanttobeabletoserve
customersattheirplaceifthey
preferitorviaaremoteapproach.
Lindell:It’snotaboutoneortheother:
it’sabouttheindividualneedsofthe
customer.Somecustomerspreferface-
to-face,somepreferremote.Itdepends
onthecircumstancesandontheproduct
thecustomerislookingat.Many
customerscanspendalongperiod
beinghappywitharemoterelationship,
butasignificantlifeeventmayspurthe
needforaface-to-facemeeting.
Torstendahl:Wethinkthatit
isimportanttounderstandhow
differentchannelsfulfildifferent
customerneeds.Ourvarious
channels:thebranchoffices;
theinternetbank;thetelephone
bank;andourmobileservices
allcomplementeachother,and
customerschoosedifferentchannels
fordifferentneeds.Thephysical
meetingoccurslessfrequentlythan
before,butisstillaveryimportant
wayofmeetingourcustomers.And
weknowthatmanycustomerswant
tomeetsomebodyinpersonwhen
itcomestomorecomplexadviceor
importantissues,suchasbuyinga
houseoranapartment.
Villaseca:Thekeyistoservethe
bestwaytoourcustomers,andthey
decidewhenandhowtoconnect
withus.Theanswerisaninnovative
multi-channelapproach:weofferour
servicesbothoff-line,through8,000
branches,andwearealsofocused
onthebestonlinebanking.
Whatisyourapproachto
attractingnewcustomers?What
roledoespricingplayhere?
Czuba:Wehaveconceivedseveral
projectsinordertoattractnew
customers.Forexample‘Killbill’
allowscustomerstopaybillsfreeof
charge.WewerethefirstinPoland
toofferthis,givingcustomersa10%
decreaseintheirenergy,phoneand
internetbills,alongwithbankingand
insuranceservices.Inadditiontothis
wehavecreatedaliorsync-thefirst
trulyvirtualbank,andmanyother
smallerinitiativeslikerealestate
agenciesinbranches.Pricingdoes
haveasubstantialrolehere–we
havetodifferentiatepricingpolicies
amongproductandservices.
Furlan:Wehavedevelopedaspecific
projectcalledSuperflashinorderto
attractnewyoungcustomers.Following
aholisticapproachwe’vereviewedthe
productrange,changedourlanguage,
joinedsocialnetworks,triednewstore
formatsandcreatedaspecificloyalty
platformforthem.Webelievethatprice
isimportant,butitisnottheonlykey
toacquireanewcustomer:thekey
factorisreliabilityandaconsistentand
seamlessexperience.
Lindell:Whenwe’retalkingabout
attractingnewcustomers,priceisa
veryimportantcomponent,butasa
relationshipbankit’smorethanthat–
webuildonaholisticapproach.When
westartdealingwithanewcustomer
itisgenerallyakeyevent–buyinga
houseorgettingmarried–soweaim
toprovideaddedvalueratherthanjust
lowprices.Fromourpointofviewit’s
aboutlookingatthewholeoffer,and
creatingsimplicityandeaseofuse.
Torstendahl:Ourmainfocusisto
buildstrong,long-termrelationships
withourcustomers.Wewanttomake
everydaylifeeasierforthem,and
helpthemtomeetalltheirfinancial
needs.Werewardloyaltyand
prioritisefullservicecustomers.Of
course,attractivepricesaretosome
extentimportantwhenitcomesto
attractingnewcustomersaswellasto
keepingexistingcustomers.
Villaseca:Weconnectwith
consumersworldwideondifferent
levels,especiallywithastrongbrand
andkeyglobalsponsorships.For
instance,inbasketball,BBVAisthe
OfficialBankfortheNBA,andin
football,BBVAisthetitlesponsorfor
theSpanishFootballPremierLeague.
Basedonthecustomers’needsand
understanding,weofferthemthebest
rangeofsolutions,attherightprice.
Oncebankshaveacquired
customers,howcantheynot
onlykeepthembutactually
boosttheirloyalty?
Czuba:It’saboutlisteningtoclients’
needs,beinginnovative,making
proofofconceptsfornewthings–
allwhilerememberingqualityand
takinganindividualapproach.
Furlan:Byliterallytakingcareofthem
andtheirfamilies–butitiseasytosay
andmuchmoredifficulttodo:loyalty
comesfrommeetingorexceedingthe
expectationsinanysingleinteraction
withthebank.Morethanthat,we
believethekeyisanticipatingand
coveringallcustomerneedswith
dedicatedtoolsofproposals.
Lindell:Firstandforemostyouneed
tosecurethebasicsandthat’sabout
understandingcustomerneedsand
deliveringwhattheywantinawaythat
iseasy.It’saboutprovidingadviceand
makingiteasilyavailable,adapting
towherethecustomerisatatimethat
suitsthem.This,alongwithpricevalue
andareliableservice,createstrustand
thereforeleadstoloyalty.
Torstendahl:Thereisofcoursemany
waysofboostingcustomerloyalty,but
understandingthecustomers’needs
andwhentheyoccur,isoneofthe
mostimportant.Harshercompetition
onthebankingmarketandincreased
opennessandtransparencyresultin
tougherdemandsfromourcustomers.
ForSEB,itisimportanttobeopen,
clearandtransparent.
Villaseca:Ourgoalisbuildinglasting
relationshipswithincreasinglysatisfied
customers.Wefocusourorganisation
inordertosatisfytheseneeds,using
multi-channelCRMinformationasa
loyaltymotivator.And,ontopofthat,
weneedtodeliverrelevantexperiences
acrossalltouchpoints.
Howdoyouseethings
changinginthefuture?Will
customersbecomemoreloyal
intheyearstocome?
Czuba:Notloyalatall.Nowadays,
switchingbankismucheasierthan
before.Thebigchallengeforthe
financialsectorwouldbetoensure
theymaintainthe‘firstbank’position.
Furlan:Ithinkwe’llseedecreasing
loyaltyinthefuture–ourcustomers
willbemoreabletoevaluate
promotionsandoffersandwillsearch
tooptimisevalueformoneysolutions.
Inordertokeepourcustomersloyal
we’llneedtodelightthem,carefor
them,andofferpersonalsolutions
thatmatchtheirneeds.
Lindell:Idon’tthinktherewillbea
bigchangeinloyalty,butIthinkthere
willbenewserviceprovidersthatwill
comeinofferingnewlevelsofservice
indifferentways.Financialservices
organisationsneedtostepuptokeep
pacewiththis,andtodeliverthe
bestpossiblelevelofservicetomeet
customerneeds.
Torstendahl:Itisalwaysdifficultto
predictthefuture,butwebelievethat
thehardcompetitionwillcontinue,
andthatitwillbeevenharderto
buildloyaltyinthefuture.
Villaseca:Inthefuture,despitethe
transformationsofcustomersand
technology,wewillkeeponworking
inordertobuildstrongrelationships
withourcustomers,bothoff-line
andonline,offeringthebest
solutionsandcreatingvalueacross
countries.Understandingthedigital
revolutionasaloyaltyopportunity,
weneedtokeeponbuildingdigital
experiences,evolvingtheremote
channelsexperiences.Attheendof
theday,loyaltyistheconsequence
ofeverythingelse:therewardthat
customersgiveus.
“Successtodayisverymuch
aboutdistributionandmaking
bankingeasyforcustomers”
RickardLindell,Nordea
“Thephysicalmeetingoccurs
lessfrequentlythanbefore,but
isstillaveryimportantwayof
meetingourcustomers”
MatsTorstendahl,Headofretailbanking,SEB
BBVAhasacustomer-focusedapproach