Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Afsc 2010 Gerd Schenkel UBank Feb 2010

3,622 views

Published on

Published in: Business, Economy & Finance

Afsc 2010 Gerd Schenkel UBank Feb 2010

  1. 1. Banking 2.0: The Next Generation Banking Gerd Schenkel, General Manager UBank – Part of National Australia Bank
  2. 2. Opening remarks <ul><li>Perspective of an industry practitioner </li></ul><ul><li>Some limitations due to confidentiality </li></ul><ul><li>Happy to take questions </li></ul>
  3. 3. Agenda <ul><li>Introduction </li></ul><ul><li>Characteristics of the “bank of the future” </li></ul><ul><li>UBank - example of those characteristics </li></ul>
  4. 4. Introduction <ul><li>Gerd Schenkel, General Manager UBank </li></ul><ul><li>4+ years with National Australia Bank </li></ul><ul><li>2+ years with UBank </li></ul><ul><li>Prior with Citigroup, BankWest/HBOS, Boston Consulting Group (Australia, USA) </li></ul><ul><li>If you’d like to keep in touch: </li></ul>@gerdschenkel @ubank [email_address] [email_address]
  5. 5. <ul><li>One of Australia’s four large banks </li></ul><ul><li>Top 20 bank globally </li></ul><ul><li>AA rated senior debt </li></ul><ul><li>>4 million customers </li></ul><ul><li>~$50 Billion market cap </li></ul><ul><li>$4.5 Billion net profit (2008) </li></ul><ul><li>Banking, Wealth Management, Insurance </li></ul><ul><li>Operates in Australia, New Zealand, USA, Hong Kong, Singapore, Japan, UK </li></ul>Introduction <ul><li>NAB’s Direct Bank </li></ul><ul><li>Launched Oct 2008 </li></ul><ul><li>Operates branchless/ standalone from NAB channels </li></ul><ul><li>Limited product set </li></ul><ul><li>Targeting specific customer segment </li></ul><ul><li>Taking leadership position in service and useability </li></ul><ul><li>Has raised significant deposits since launch </li></ul>
  6. 6. Agenda <ul><li>Introduction </li></ul><ul><li>Characteristics of the “bank of the future” </li></ul><ul><li>UBank - example of those characteristics </li></ul>
  7. 7. The bank of the future … <ul><li>… leverages consumer mega trends </li></ul><ul><li>… utilizes new technologies for the benefit of its customers </li></ul><ul><li>… puts the &quot;customer experience“ at its centre </li></ul>
  8. 8. The bank of the future … <ul><li>… leverages consumer mega trends </li></ul><ul><li>… utilizes new technologies for the benefit of its customers </li></ul><ul><li>… puts the &quot;customer experience“ at its centre </li></ul>
  9. 9. 1. Declining relevance of physicality 2. New technology giving rise to new services 3. Declining trust in “institutions” 4. Radical change in communication patterns <ul><li>Church attendance </li></ul><ul><li>Union membership </li></ul><ul><li>Mistrust of corporations </li></ul>Four global, social mega-trends relevant to banks
  10. 10. The meteoric rise of “social media” is at the epicentre of this change <ul><li>Facebook   350 million active users </li></ul><ul><ul><li>50% of active users log into the site each day. 175m users every 24 hours </li></ul></ul><ul><ul><li>More than 35m Facebook users update their status each day </li></ul></ul><ul><ul><li>2.5b photo uploads per month </li></ul></ul><ul><ul><li>65m users accessing mobile </li></ul></ul><ul><ul><li>3.5bn pieces of content (web links, news stories, blog posts, etc.) shared each week </li></ul></ul><ul><ul><li>Purpose-built Facebook pages have created more than 5.3bn fans </li></ul></ul><ul><li>Youtube 14.8 billion online videos watched in January 2009 </li></ul><ul><li>Twitter  75m user accounts </li></ul><ul><ul><li>but only around 15m are active users on a regular basis </li></ul></ul><ul><ul><li>average number of tweets per day was over 27.3 million </li></ul></ul><ul><li>LinkedIn  50m members </li></ul><ul><li>Flickr hosts more than 4bn images </li></ul><ul><li>Wikipedia  in excess of 14m articles </li></ul><ul><ul><li>85,000 contributors have written nearly a million new posts in six months </li></ul></ul>Source: Various
  11. 11. <ul><li>Worldwide unique visitors (June, 2009).  </li></ul><ul><li>Google Sites: 844 million </li></ul><ul><li>Microsoft Sites: 691 million </li></ul><ul><li>Yahoo! Sites: 581 million </li></ul><ul><li>Facebook: 340 million </li></ul><ul><li>Wikimedia Foundation sites: 303 million </li></ul><ul><li>AOL: 280 million </li></ul><ul><li>eBay: 233 million </li></ul><ul><li>CBS Interactive: 186 million </li></ul><ul><li>Amazon: 183 million </li></ul><ul><li>Ask Network: 174 million </li></ul><ul><li>Source: comScore </li></ul>Facebook is now the standout mass social media platform
  12. 12. Social Media super-charges the age-old power of word of mouth
  13. 13. In the new world, we happily trust the collective opinion of many anonymous reviewers
  14. 14. Financial Services providers slowly catching on – but few grasp the lasting transformation we face Source: visiblebanking.com
  15. 15. The bank of the future … <ul><li>… leverages consumer mega trends </li></ul><ul><li>… utilizes new technologies for the benefit of its customers </li></ul><ul><li>… puts the &quot;customer experience“ at its centre </li></ul>
  16. 16. Internet already common-place for information gathering - Financial services Source: Council on Financial Competition, 2008
  17. 17. Internet expected to dominate purchase process in future - Financial services Source: Council on Financial Competition, 2008
  18. 18. Technology is not the barrier (anymore) Source: Council on Financial Competition, 2008
  19. 19. But simple “migration” of legacy processes online is not working Source: Council on Financial Competition, 2007
  20. 20. The bank of the future … <ul><li>… leverages consumer mega trends </li></ul><ul><li>… utilizes new technologies for the benefit of its customers </li></ul><ul><li>… puts the &quot;customer experience“ at its centre </li></ul>
  21. 21. Traditional banks are branch-centric and suffer from legacy processes and technology <ul><li>lower customer expectations in offline world, eg service times </li></ul><ul><li>relies on staff to smooth over poor process design </li></ul><ul><li>“ alternative channels” plug into branch and legacy processes </li></ul>Phone Online Banker Mail Processes & technology Branch
  22. 22. Bank of the future designed around user experience, not one specific channel <ul><li>user experience has to be designed end-to-end </li></ul><ul><li>experience only as good as the weakest link </li></ul><ul><li>migrating the branch-centric experience online does not work well </li></ul>User experience Phone Online Messaging Mobile
  23. 23. Process and technology platforms matter Data & technology platform Process Platform User experience Phone Online Messaging Mobile
  24. 24. A strong value set is important to guide a coherent experience Values <ul><li>matching customer expectations to reality </li></ul><ul><li>clarity on target segment, needs and CVP are critical </li></ul>Data & technology platform Process Platform User experience
  25. 25. Agenda <ul><li>Introduction </li></ul><ul><li>Characteristics of the “bank of the future” </li></ul><ul><li>UBank - example of those characteristics </li></ul>
  26. 26. Agenda <ul><li>Introduction </li></ul><ul><li>Characteristics of the “bank of the future” </li></ul><ul><li>UBank - example of those characteristics </li></ul><ul><ul><li>UBank’s customer experience focus </li></ul></ul><ul><ul><li>UBank’s use of social media </li></ul></ul>
  27. 27. UBank brand and CVP address high priority customer needs & determined platform design Brand Values Inventive-ness Future of money Integrity & transpa-rency Empathy Good rates Great service Ease of use Security, Safety & Stability Design of process & technology platforms & product design Customer Value Proposition
  28. 28. Examples of UBank process and technology platform Accept deposits immediately Customer centric website design Straight through account opening, incl. >90% electronic verification (AML) Ease of use 6 sigma, low error rate process design Value added tools: Goal Tracker, Savings Buckets 24/7 telephone & messaging service Great service
  29. 29. The “five minute” bank account
  30. 30. Customer centric website design
  31. 31. Value added tools and information
  32. 32. Savings Goal Tracker
  33. 33. Agenda <ul><li>Introduction </li></ul><ul><li>Characteristics of the “bank of the future” </li></ul><ul><li>UBank - example of those characteristics </li></ul><ul><ul><li>UBank’s customer experience focus </li></ul></ul><ul><ul><li>UBank’s use of social media </li></ul></ul>
  34. 34. Use of Social Media is a natural extension of UBank’s values
  35. 35. Social media is integral to how we engage & provide customer choice
  36. 36. Social media use at UBank differs by platform <ul><li>Facebook : primary, off-site community </li></ul><ul><li>YouTube : rich audio visual content </li></ul><ul><li>Twitter : many forms of real time engagement </li></ul><ul><li>Continued experimentation </li></ul>
  37. 37. Facebook: 4,500 fans & >500,000 “friends of fans” (c) UBank - National Australia Bank
  38. 38. Youtube: >70,000 views
  39. 40. Built follower base with USB giveaway (c) UBank - National Australia Bank <ul><li>Today’s use </li></ul><ul><li>Customer service inquiries ~10% </li></ul><ul><li>Brand-level engagement ~50% </li></ul><ul><li>Feedback and response ~30% </li></ul><ul><li>Company announcements ~10% </li></ul><ul><li> Changing rapidly </li></ul><ul><li> Current focus on developing customer service inquiries </li></ul>Twitter: ~2,500 followers and ~3m second order followers
  40. 41. Continued experimentation: UBank time capsule
  41. 42. Continued experimentation: UBank UserVoice
  42. 43. Continued experimentation: UBank iLike ringtones
  43. 44. And yes, social media can sell – provided the engagement is enduring and genuine Social media only Full marketing mix Immediate take up on launch
  44. 45. … and we integrate with above the line media: Outdoor
  45. 46. … and we integrate with above the line media: TV
  46. 47. Thank You Any Questions? [email_address] @gerdschenkel

×