Banks have to become SUPER

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Slides presented by Forrester Research's senior analyst Brad Strothkamp in the Backbase webinar webinar: 'The Next Generation of Digital Finance: Banks Need To Be SUPER' held Wednesday, the 9th of November 2011.

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  • Growth will be driven by an increasingly online population, rapid Gen-Y adoption, and rising confidence in online securityGen-Y customers will bring with it heightened expectations for site functionality and ease of use, having grown up around slick iPhone apps and simple interfaces like that of Mint.com.
  • Like a powerful sports car that is difficult for novice drivers to handle, secure online banking sites of the largest US banks overwhelm users with their power and complexity, paying little attention to user experience faults and providing minimal support. Left unheeded, these issues will limit the breadth of online functionality that most customers are exposed to and raise support costs in other channels as users seek satisfaction there. Most bank secure Web sites today cater more to the needs of experienced users, failing to offer the basic product and service support that new users need to reach a level of comfort and familiarity with the site that encourages exploration and trial.
  • Banks have to become SUPER

    1. 1. Next-Generation Financial Service SitesBrad Strothkamp, Vice President & Principal AnalysteBusiness and Channel Strategy – Financial ServicesNovember 9, 20111 © 2011 Forrester Research, Inc. Reproduction Prohibited 2009
    2. 2. Today’s secure Web sites are inferior to good branchadvisors2 © 2011 Forrester Research, Inc. Reproduction Prohibited
    3. 3. AgendaWhat are the shortcomings of many secure sites today?What are the elements of Next-Generation secure sites?What are the implication for retail financial services firms?3 © 2011 Forrester Research, Inc. Reproduction Prohibited
    4. 4. AgendaWhat are the shortcomings of many secure sites today?What are the elements of Next-Generation secure sites?What are the implication for retail financial services firms?4 © 2011 Forrester Research, Inc. Reproduction Prohibited
    5. 5. Two thirds of US online households will bank onlinein 2014 — growth will be driven mainly by Gen-Y5 © 2011 Forrester Research, Inc. Reproduction Prohibited
    6. 6. Today’s secure sites have a range of shortcomings Most secure sites today:  Don’t always make it easy for customers to achieve their goals.  Cannot be accessed from every device.  Provide content that isn’t always relevant to individual needs.  Don’t empower customers sufficiently.  Fail to offer human help during high-value interactions. 6 © 2011 Forrester Research, Inc. Reproduction Prohibited
    7. 7. AgendaWhat are the shortcomings of many secure sites today?What are the elements of Next-Generation secure sites?What are the implication for retail financial services firms?7 © 2011 Forrester Research, Inc. Reproduction Prohibited
    8. 8. Next-generation secure sites will be SUPER S Simple: Make it easy for customers to achieve their goals. U Ubiquitous: Interact with customers wherever they want to. P Personal: Make the entire experience relevant to personal needs. E Empowering: Enable customers to take action by themselves. R Reassuring: Provide human help whenever it adds value.8 © 2011 Forrester Research, Inc. Reproduction Prohibited
    9. 9. Next-generation secure sites will be SUPER S Simple: Make it easy for customers to achieve their goals.9 © 2011 Forrester Research, Inc. Reproduction Prohibited
    10. 10. Next-Generation digital financial services will make it easy for customers to achieve their goals Most people dont enjoy spending time managing their personal finances Few firms make it easy for customers to manage their accounts online since most secure sites today cater more to the needs of experienced users Next-generation digital financial services will simplify the experience10 © 2011 Forrester Research, Inc. Reproduction Prohibited
    11. 11. Next-generation secure sites will focus on what really matters to customers today Source: Discover11 © 2011 Forrester Research, Inc. Reproduction Prohibited
    12. 12. Next-generation secure sites will focus on what really matters to customers today Source: Discover12 © 2011 Forrester Research, Inc. Reproduction Prohibited
    13. 13. US startup BankSimples value proposition is based on simplicity Source: BankSimple13 © 2011 Forrester Research, Inc. Reproduction Prohibited
    14. 14. Next-generation secure sites will be SUPER S Simple: Make it easy for customers to achieve their goals. U Ubiquitous: Interact with customers wherever they want to.14 © 2011 Forrester Research, Inc. Reproduction Prohibited
    15. 15. Next-Generation digital financial services will providechannel choice, consistency, and continuity Source: Forrester Research15 © 2011 Forrester Research, Inc. Reproduction Prohibited
    16. 16. Choice: USAA let’s customers access and managetheir accounts via their Facebook profile pages • USAA let’s customers access and manage their accounts via its My USAA tab in Facebook • Customers can add a tab to their facebook page to access account information, services, and more from Facebook16 © 2011 Forrester Research, Inc. Reproduction Prohibited
    17. 17. Choice: Spain’s La Caixa supports customers via a range of mobile platforms17 © 2011 Forrester Research, Inc. Reproduction Prohibited
    18. 18. Consistency: RBC and Fokus Bank let customers addmobile banking gadgets on iGoogle • Customers can add a widget to their iGoogle personal web portal that gives access to the bank’s mobile banking Web site, thereby creating a consistent experience across the two touchpoints Source: Personalized iGoogle Web site18 © 2011 Forrester Research, Inc. Reproduction Prohibited
    19. 19. Continuity: Australia’s CommonWealth Bank letscustomers track applications on the secure site • A unique application number is assigned to every product application that is started — no matter via which channel • Customers can finish them via whichever channel they prefer • They can view the application number and status via a dedicated tab ―My applications‖ within online banking.19 Source:Forrester Research, Inc. Reproduction Prohibited © 2011 Commonwealth Bank of Australia
    20. 20. Next-generation secure sites will be SUPER S Simple: Make it easy for customers to achieve their goals. U Ubiquitous: Interact with customers wherever they want to. P Personal: Make the entire experience relevant to personal needs.20 © 2011 Forrester Research, Inc. Reproduction Prohibited
    21. 21. Next-generation digital financial services will personalizethe entire experience Content Navigation Presentation Personalization Personalization Personalization -Personalized greetings like ―Hallo Alexander‖, ―Happy Birthday‖, or ―Merry Christmas‖-Information about last login andthe most significant transactions that happened since then -Possibility to continue where -Language, layout, and user stopped during the last formatting is tailored to -Proactive notifications about visit different customer segments what actions are required -Main navigation provides -Site customization lets users -Personalized product offers shortcuts to the most likely select displayed content and (e.g. banner ads) user scenario rearrange page layouts -Personalized marketing and -Different navigation layers are -Product pages highlight which service messages (secure presented to different customer products the customer already inbox) segments has and which ones are most relevant to him -Forms and tools that are prefilled with existing customer information -Information about the nearest branch or dedicated advisor21 © 2011 Forrester Research, Inc. Reproduction Prohibited
    22. 22. GEICO offers a fully personalized home page for clients that is different to that for prospects First-time visitors Returning visitors22 © 2011 Forrester Research, Inc. Reproduction Prohibited Source: GEICO Web site
    23. 23. Dutch SNS Bank uses cross-channel campaignmanagement to make relevant offers on the secure site23 © 2011 Forrester Research, Inc. Reproduction Prohibited
    24. 24. Cross-channel campaign management solutions integrate all inbound and outbound customer interactionsSource: December 2009 “The Forrester Wave™: Cross-Channel Campaign Management, Q4 2009” 24 © 2011 Forrester Research, Inc. Reproduction Prohibited
    25. 25. Next-generation secure sites will be SUPER S Simple: Make it easy for customers to achieve their goals. U Ubiquitous: Interact with customers wherever they want to. P Personal: Make the entire experience relevant to personal needs. E Empowering: Enable customers to take action by themselves.25 © 2011 Forrester Research, Inc. Reproduction Prohibited
    26. 26. Next-generation digital financial services sites willprovide tools to help customers with 4 main questions 1.) What do I 2.) How am I 3.) What 4.) How can I own? doing? should I do? take action? -Let customers -Make proactive create budget and recommendations savings goals and based on-Provide a real-time track their progress customer’s -Make relevant and snapshot of the transaction data actionable customer’s entire -Let customers and financial recommendations financial position create reports to objectives analyze their -Let customers-Include all assets behavior -Offer tools and execute theand liabilities (e.g. functionality that recommendations pension, real -Provide time- and help customers to immediately estate, etc.) event-triggered optimize their alerts finances 26 © 2011 Forrester Research, Inc. Reproduction Prohibited
    27. 27. Next-generation secure sites will be SUPER S Simple: Make it easy for customers to achieve their goals. U Ubiquitous: Interact with customers wherever they want to. P Personal: Make the entire experience relevant to personal needs. E Empowering: Enable customers to take action by themselves. R Reassuring: Provide human help whenever it adds value.27 © 2011 Forrester Research, Inc. Reproduction Prohibited
    28. 28. Next-generation digital financial services will intelligentlyprovide human advice whenever it adds value Right Right Right Customer Interaction Information -Offer human help proactively during high- -Offer human help value interactions like depending on customer -Equip agents with the researching a complex value, i.e. more valuable right information like product or filing a clients are more likely to customer data and complaint get human help recent interaction data -Proactively anticipate -Take customer’s -Provide consistent the reason for a channel preferences levels of support by customer call and reach into account to sharing information out to customers before determine which channel across multiple channels they need to make the is offered call28 © 2011 Forrester Research, Inc. Reproduction Prohibited
    29. 29. ABN Amro is providing direct access to a personaladvisor on the secure site for preferred banking clients On the secure site, preferred banking customers can see a picture of their accountmanager, find his or her direct telephone number, andreceive personal service messages. 29 © 2011 Forrester Research, Inc. Reproduction Prohibited
    30. 30. Bankinter offers one-to-one video calls to provide human advice on digital channels Since 2007 Bankinter offers a Video Call service: • Customers can do one-to-one Web video chats with call center staff via VoIP beyond standard business hours • Video call is used both for sales and servicing and enables sharing documents, applications and web pages • A software needs to be installed first and users can use a webcam • The service is integrated with the banks CRM system for call routing and customer information • Bankinter handled more than 47,000 video calls in 2008 • Since the system was installed, upsell rates went up by 150% in the first three months30 © 2011 Forrester Research, Inc. Reproduction Prohibited
    31. 31. Agenda What are the shortcomings of many secure sites today? What are the elements of Next-Generation secure sites? What are the implication for retail financial services firms?31 © 2011 Forrester Research, Inc. Reproduction Prohibited
    32. 32. Implications and recommendations  The secure site is gradually becoming the heart of the customer relationship  Differentiation is shifting from the branch network to the public and secure sites  Most of today’s secure sites don’t take the full advantage of the web  Financial services firms should develop a new generation of secure sites that are SUPER32 © 2011 Forrester Research, Inc. Reproduction Prohibited
    33. 33. Thank youBrad StrothkampVice President & Principal Analyst, eBusiness & Channel Strategybstrothkamp@forrester.comTwitter: http://twitter.com/strothkamp © 2009 Forrester Research, Inc. Reproduction Prohibited

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