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Banking On Mobile - Getting Ready for 2016

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Mobile banking apps are rewiring customer interactions.

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Banking On Mobile - Getting Ready for 2016

  1. 1. Banking On Mobile - Getting Ready For 2016 Tom Farrell - VP Marketing Barry Nolan - VP Strategy
  2. 2. Build a direct relationship with customers Know and personally interact with every customer in one simple platform. 2
  3. 3. 3 371K Babies born each day
  4. 4. 4 580K iPhones sold each day 1,500K Android devices activated each day 371K Babies born each day
  5. 5. 5 1 @facebook 2 China 3 Tencent @WeChat 4 India 5 @WhatsApp 6 @LinkedIn 7 @instagram 8 @twitter 9 U.S. 10 @Snapchat Mobile First
  6. 6. When do we stop calling it a phone? sound and vision
  7. 7. 7 Data Voice The phone is one of the least used apps
  8. 8. 8 13.0% 87.0% On mobile, people spend 87% time in-app, versus on the mobile web. ComScore
  9. 9. 9 7s 38s Average Interaction Times
  10. 10. 10 We know human attention is dwindling Source: Statistic brain The average human attention span in 2000 The average human attention span in 2013 The average attention span of a goldfish 12 seconds 8 seconds 9 seconds Why the fast and frictionless win Source: Statistic brain The average human attention span in 2000 The average human attention span in 2013 The average attention span of a goldfish 12 seconds 8 seconds 9 seconds
  11. 11. The future in banking in two charts modern love
  12. 12. The future in banking in two charts Mobile is universal 4 bn users source: A16Z
  13. 13. The future in banking in two charts source: A16Z
  14. 14. Mobile banking apps are rewiring customer interactions Where are we now?
  15. 15. 15 Internet MobileTelephoneBranch -15% -13% 25% 940% Source: BBA 2010-2015 # INTERACTIONS 2010-2015
  16. 16. 16 2% - of payments and transfers by HSBC are now done in a branch - the proportion of all digital banking by Halifax now done on a mobile phone 65% Source: BBA
  17. 17. 17 NatWest Bank’s busiest branch is the 7:15am train from St. Albans. This is a mobile-moment
  18. 18. 18 10 15 20 25 30 35 40 45 50 55% 10 15 20 25 30 35 40 45 50 55% Mobile interactions as a percentage of total interactions, 2013 and 2015 South Korea Netherlands Mobile exceeds online Online exceeds mobile US AustraliaChina Singapore Hong Kong Mexico India UK France Canada Poland Germany Spain Online interactions as a percentage of total interactions Japan 2013 2015 Figure 4: Mobile is displacing online in banking 10 15 20 25 30 35 40 45 50 55% 10 15 20 25 30 35 40 45 50 55% Mobile interactions as a percentage of total interactions, 2013 and 2015 South Korea Netherlands Mobile exceeds online Online exceeds mobile US AustraliaChina Singapore Hong Kong Mexico India UK France Canada Poland Germany Spain Online interactions as a percentage of total interactions Japan 2013 2015 Average Age 55 or more Source: Bain/Research Now NPS surveys, 2015 Figure 4: Mobile is displacing online in banking Mobile is displacing online in banking Source: Bain Research
  19. 19. 19 0 5 10 15 20 20 17 15 14 14 14 12 12 12 11 10 10 9 9 9 6 2 Average number of routine interactions per respondent in last quarter, 2015 Netherlands SouthKorea France Australia US UK China Spain Poland India Singapore Brazil Mexico HongKong Canada Germany Japan Smartphone app Tablet app Mobile browser Figure 6: Consumers use apps more than mobile browsers When banking, consumers instinctively reach for an app Average number of routine interactions per respondent in last quarter, 2015 Source: Bain Research 73% 64%
  20. 20. 20 76% use banking apps every week. 62% more than once a week Mobile b Hardly ever, only when I really need it 10% 2% Consumers’ connectivity banking. O app, more th at least a fe in 10 (20%) A few times a week 42% Once a week 14% A few times a month 17% Once a day 13% A few times a year 5% More than once a day 7% http://newsroom.bankofamerica.com/files/doc_library/additional/2015_BAC_Trends_in_Consumer_Mobility_Report.pdf
  21. 21. 21 Where people use mobile banking apps? Mobile-Moments
  22. 22. 22 Every new mobile sensor and service, has created new interaction opportunities that are avidly used. Camera OCR - Check Deposit Video chat GPS Location-based services Wallets Transactions & rewards Push Notifications Customer messaging Biometrics (Touch-ID) Customer authentication Headphones Accept payments Source: Fiserve
  23. 23. Millennials are the battleground young Americans
  24. 24. 24 Source: Tech.pinions
  25. 25. 25http://blog.medallia.com/customer-experience/how-a-great-customer-experience-is-really-delivered/
  26. 26. 26
  27. 27. 27 Millennials are nearly twice as likely to switch financial service provider 18% 10% 3% Millennials (18-34) 35-54 55+ +80% Source: Accenture, June 2015 Switched their primary bank last year +600%
  28. 28. 28 Digital Services 33%18% of Millennials switched their primary bank within the past 12 months. stay with their bank because of good digital services. WINNING MILLENNIAL CUSTOMERS Source: Accenture, June 2015 Are the biggest factor for Millennials deciding to stay or switch.
  29. 29. 29 When consumers bank via apps they are happier & generate more revenue Golden Years
  30. 30. 30 Source: Accenture, 2015 Transactional rather than relationship driven
  31. 31. 31 0 4 8 12% 24 28 32% Online routine Mobile app routine Six interactions in last quarter ATM Online sales/service Mobile sales/service Branch sales/service Phone Chat/video Increasing likelihood to delight Reliable Percentage of US respondents, 2015 Decreasinglikelihoodtoannoy Annoying Delightful Variable Notes: Responses on a scale from -5 to 5 for “to what extent did the interaction increase or decrease your likelihood to recommend your bank?”; likelihood to delight=percentage Branch routine Mobile browser routine Figure 1: Mobile is consistently more likely to delight than other channels Mobile apps delight more than other channels Source: Bain Research
  32. 32. 32 Revenue is higher with mobile banking users. • 46% increase in POS card transactions. • 45% increase in monthly transaction from $550 to $801. Why? The app puts them more in control of their finances Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions
  33. 33. 33 +46% POS transactions +25% ATM transactions +46% ACH transactions -32% branch visits -50% customer churn Mobile banking versus non mobile-banking customers Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions
  34. 34. 34 Mobile banking customers at the banks in the study – not just new adopters – have higher product holdings at 2.3 products vs. 1.3 for branch-only customers. The results are similar for credit unions. Why do mobile bankers typically use more financial institution products than those who don’t use mobile banking? Consumers who use mobile are likely more engaged with their financial institutions. As the relationship between consumers and financial institutions deepens, it enables other types of engagement. If customers have savings accounts, auto loans and mobile banking with a bank, for instance, they’re more likely to think of that financial institution they need mortgag financial services As consumers use products, they tur banking to help th increasingly comp lives. This may lea specifically seek o banking capabilitie an overall financia 2.3 Product Holdings 1.3 Product Holdings Mobile Banking Customers Branch-Only Customers Deepening the Relationship Mobile bankers typically use more bank products. Why? Mobile users are more engaged, and have a deeper relationship with the bank, enabling more product adoption. Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions?
  35. 35. 35 Staying in control The majority (81%) of mobile banking app users are also using banking notifications and alerts. Gen X (ages 35-49) is the most likely to receive alerts in comparison to the other demographics (91%). 35% 35% 41% 43% 41% 27% 23% 18% 12% 41% 36% 45% 50% 41% 32% 28% 23% 20% Total respondents Gen X Bill payment due Check/payment cleared Deposit made Low balance Fraud/unusual activity Account accessed via a new device Credit card limit New mobile banking functionality Banking appointment reminder http://newsroom.bankofamerica.com/files/doc_library/additional/ 2015_BAC_Trends_in_Consumer_Mobility_Report.pdf Staying in control 81% of mobile banking app users use notifications and alerts. Staying in control The majority (81%) of mobile banking app users are also using banking notifications and alerts. Gen X (ages 35-49) is the most likely to receive alerts in comparison to the other demographics (91%). 35% 35% 41% 43% 41% 27% 23% 18% 12% 41% 36% 45% 50% 41% 32% 28% 23% 20% Total respondents Gen X Bill payment due Check/payment cleared Deposit made Low balance Fraud/unusual activity Account accessed via a new device Credit card limit New mobile banking functionality Banking appointment reminder
  36. 36. 36 UK US 55–64 65+ 45–54 55–64 45–54 35–44 25–34 18–24 65+ 55–64 45–54 35–44 18–24 25–34 0% –5 –10–10 –15 –20 Channel experience score relative to leading channel, which is indexed to zero, 2015 The channel experience for mobile applies across age groups. China UK 55–64 18–24 45–54 35–44 55–64 45–54 35–44 18–24 25–34 25–34 Channel experience score relative to leading channel, which is indexed to zero, 2015 Mobile Online ATM Branch Phone Source: Bain Research
  37. 37. 37 customers who had the best past experiences spend 140% more compared to those who had the poorest past experience. https://hbr.org/2014/08/the-value-of-customer-experience-quantified
  38. 38. where are we headed? five years
  39. 39. 39 Internet Mobile Telephone Branch 2010 2015 2020 Source: BBA # INTERACTIONS 2015 Most customers are “mobile-first”
  40. 40. 40 Internet Mobile 2015 2020 2020 Most customers will be “mobile-only”
  41. 41. 41 Mobile 2020 We’ve seen this story before
  42. 42. 42 POSIT Are the best banks mobile apps?
  43. 43. 43 what do you do when your customers live behind an app?
  44. 44. 44 Don’t do this
  45. 45. 45 A shrunken website
  46. 46. 46 There are over 20 different products on this home page. (And a hundred more startups unbundling them). Browse and self-serve doesn’t work well on mobile.
  47. 47. 47 Think, and act, mobile first: Simplify banking Solve people’s problems Save people 
 time The future of banking isn’t products it’s service experiences.
  48. 48. 48 Personalised to the customer, reflects needs and wants Intuitive, simple to use, simple to act. Speaks in human, jargon-free language Omni-channel aware, joined up experiences Know what the data is telling you. Deliver at, or anticipates, the moment of need The future of banking isn’t products it’s service experiences.
  49. 49. 49 25% of new users will use your app once. Most 2-3 times. Personalising onboarding transforms conversion
  50. 50. 50 Kate was acquired via a student campaign. This is her first app open.
  51. 51. Build interactions around mobile-moments moments when your brand is most needed
  52. 52. 52 mobile-moment
  53. 53. mobile-moment I need an overdraft Need a €500 overdraft? customer bank Interact at moment of most need for the customer
  54. 54. 54 Personalised Real-Time Interaction Action In-app Message
  55. 55. 55 ntrol %) of mobile banking app users are also using banking notifications and alerts. 9) is the most likely to receive alerts in comparison to the other demographics (91%). 52% 35% 35% 41% 43% 41% 27% 23% 18% 12% 41% 36% 45% 50% 41% 32% 28% 23% 20% Total respondents Gen X Bill payment due Check/payment cleared Deposit made Low balance Fraud/unusual activity Account accessed via a new device Credit card limit New mobile banking functionality Banking appointment reminder http://newsroom.bankofamerica.com/files/doc_library/additional/ 2015_BAC_Trends_in_Consumer_Mobility_Report.pdf 55
  56. 56. 56 Make banking simpler if it can be done on a smartphone, it will be done on a smartphone.
  57. 57. 57
  58. 58. 58 How do you sell? Personalised in-app campaigns have the highest conversion of ANY channel.
  59. 59. 59 Who doesn’t have a credit card account with us? Swrve tells you Deliver and complete the campaign in- app
  60. 60. 60 Using people’s name: Builds better brand rapport and engagement Simple to personalise
  61. 61. 61 Predictive: Swrve knows (through analysing passed usage) that 6:17pm is the optimal time to message Kate.
  62. 62. 62 Targeted: Kate doesn’t have a credit card with the bank. Behavioural targeting
  63. 63. 63 Goal focused Every time you communicate, you should track against measurable goals. Swrve automatically tracks goals Set message objectives
  64. 64. 64 Goal focused Every time you communicate, you should track against measurable goals. Swrve automatically tracks goals Set message objectives
  65. 65. 65 Tested A/B/n test the perfect message. Variant B Which message works best?
  66. 66. 66 Every message is 1-touch programmable, making interaction (and conversion) easy. Interactive In-App Message
  67. 67. 67 An in-app message center saves every important message. Inbox’s can drive engagement to over 80%.
  68. 68. 68 Think, and act, mobile first: Simplify banking Solve people’s problems Save people 
 time The future of banking isn’t products it’s service experiences.
  69. 69. Thank you - any questions? Tom Farrell - VP Marketing Barry Nolan - VP Strategy

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