Isn't the banking experience too serious to be left to bankers?
CIS International Banking ConferenceKiev, 5 June 2013Paolo BarbesinoBank Austria Unicredit GroupFirst VP, Internet & Mobile Banking CEE RetailISN’T THE BANKING EXPERIENCE TOO SERIOUSTO BE LEFT TO BANKERS?
CUSTOMER EXPERIENCE EVENTUALLY MADE IT TO THE BANKINGRADARSource: Efma Journal No. 238 May/June 201351The subject of customer experience in retail banking has never been more important.Customer behaviours, expectations and needs are changing very fast and competitivepressure is growing – not only from inside the industry, but from non-traditional players suchas retailers who are increasingly claiming a share of the customer’s wallet and who, manywould argue, are better set up to deliver an enhanced experience.In this feature we hear from a number of bankers and industry experts who discuss thechange in customer demands and strategies for a successful future.SPECIAL REPORT: THE CUSTOMER EXPERIENCEMeetingexpectationsThe subject of customerexperience in retail banking hasnever been more important.Customer behaviours, expectationsand needs are changing very fastand competitive pressure isgrowing – not only from inside theindustry, but from non-traditionalplayers … who are increasinglyclaiming a share of the customer’swallet and who, many would argue,are better set up to deliver anenhanced experience.“”
THE FOCUS ON CUSTOMER EXPERIENCE IS EXPECTED TO BRINGABOUT A NEW GOLDEN AGE IN THE INDUSTRYSource: CEE Retail elaborations based on McKinsey & Co: “In search of a sustainable model for retail banking”SUSTAINABLEGROWTH &PROFITABILITYKEY COMPONENTS- Standardization- Product simplification- Process simplification- Platform consolidation- Channel de-siloing- MC/CRM integration- Big data- Social media foothold- Product & service innovation
3INSIGHTS FROM THE FIELD:HOW BANKING FITS IN THE LIVES OF OUR CUSTOMERS
WITHOUT A SERIOUS UPGRADE OF THE ON-SCREEN FRANCHISE BANKSWON‘T SUCEEED IN THE NEW DISTRIBUTION MIXSource: CEE Retail elaborations based on BCG, Oliver Wyman, Mckinsey & Co, CEE internal data- Branch- Contactcenter- MSF- ATM- PC- Smartphone- TabletATTRACT ENGAGE ACQUIRE TRANSACT X/UP-SELL RETAINAS ISlowest relevancehighest relevanceON-SCREENPERSONALDistribution mix across personal & on-screen channelsTO BEATTRACT ENGAGE ACQUIRE TRANSACT X/UP-SELL RETAINA HUGE DIFFERENCE REMAINSBETWEEN THE 65% OF AVERAGE DAILYINTERNET USERS AND THE 25% OFONLINE BANKING USERSON-SCREEN INTERACTIONS ARE SETTO GROW THEIR IMPORTANCE ALONGTHE WHOLE CUSTOMER JOURNEYFROM TRANSACTIONS TO SALES ANDRELATIONSHIP MANAGEMENT
9CAN BANKS SET STANDARDSIN THE ON-SCREEN EXPERIENCE?
INTERNET IS MORE THAN ABANKING CHANNELExpectationsabout what userswill ﬁnd onbanking websitesare set by theremaining 99%!Users attention isa scarceresource forbanks!less than !of online time isspent on bankingwebsites!1%Source: The Nielsen Company, 2011
ON-SCREEN EXPERIENCE CANNOT LEAVE ANYTHING TO IMPROVISATIONUX on personal channels• Sketched on a canvas• Often unpredictable• Flexible process to accommodatevirtually any development in theinteraction• Personal soft skills to prevent thecounterpart to interrupt theinteractionOn-screen UX• Blue-printed from end-to-end• What cannot be predicted cannot beacted• Process needs to be designed inadvance to accommodate a small setof developments in the interaction• The counterpart is always one clickaway from interrupting the interactionOK, I’ll get back to youas soon as I find asolution. I make sure itwon’t take long.
DESIGNING THE ON-SCREEN BANKING EXPERIENCE SHOULD COVERBOTH EARNED (SOCIAL) AND OWNED MEDIA
THE INTERACTION BETWEEN EARNED AND OWNED MEDIASHOULD BE ATTENTIVELY DESIGNED IF CUSTOMERSATISFACTION IS TO BE ATTAINED
15“WHEN I ENTER MY ONLINE BANKINGI DON’T WANT JUST TO SEE MY ACCOUNT.I WANT TO ENTER MY BANK.”
RISING CUSTOMER EXPECTATIONS CALLS FOR A NEW ON-SCREENBANKING EXPERIENCEone-clicksocialmediae-commercemobilerich mediadeal of thedaycloudmash-upWeb 2.0 user experienceSource: Next-Generation Digital Financial Services, Forrester, February 2011“Rising customer expectations and the growing importance of the Web and mobileas sales and service channels mean that financial services e-Business executivesneed to fundamentally improve the way they serve customers via digitalchannels.”New user experience attributes for on-screen banking
ON-SCREEN BANKING EXPERIENCE SHOULD EVOLVE FROM MEETINGDUMB TRANSACTIONAL NEEDS TO A FULLY INTELLIGENT TOUCHPOINTNUMBEROFFUNCTIONALITIES-Customer support/relation managementPre-sales/salesTransactional bankingOn-screen Banking - AS ISUSER EXPERIENCE +On-screen Banking – TO BE-+
USERS, NOT BANKERS, SHOULD FIND USING THE SERVICE DESIRABLE18how easy it is tointeract with theserviceDESIRABILITYUSABILITYPLEASURABILITYUTILITYhow pleasurablethe interaction isat the emotionallevelwhat the servicedoes, or offers tocustomer, at afunctional level
• manage exceptions, not be overwhelmedby them• get rid of functionalities that appeal tobankers but customers barely use, addfunctionalities that users miss• rearrange and prioritize functionalitiesaccording to user’s expectations• simplify overall navigation• streamline processes and reduce clicks• provide additional tools to help customersmanage their money• create context for commercial CTAs• always offer remote interaction with staff• use natural language, avoid bankingjargon• steal as much as you can from the beston-screen experiencesTHE ON-SCREEN BANKING EXPERIENCE SHOULD FINANCIALLYEMPOWER CUSTOMERS IN A 2.0 ENVIRONMENT
20GET RID OFFUNCTIONALITIESTHAT APPEAL TOBANKERS BUTCUSTOMERSBARELY USE
ADD FUNCTIONALITIES THAT USERS MISS: CONVENIENCE
USE NATURAL LANGUAGE, AVOID BANKING JARGONIn lieu of—> Instead ofOpt—> ChooseProceding—> PreviousLast day of preceding month—> Last day of previous monthFulfill your needs—> Meet your needsPurchase—> BuyCountry of residence—> Where you live inYou may be required to provide…—> We may ask you to provide…We will assist you—> We will help youSubmit your application—> Send your applicationThe original investment will be returned—> We will return your original investmentRemittance—> PaymentNotify—> Tell usPrevailing exchange rate—> Exchange rate at the timeSurrender value payable—> Amount you get backSource: http://speakhuman.tumblr.com/
PROVIDE ADDITIONAL TOOLS TO HELPCUSTOMERS MANAGE THEIR MONEY