The document discusses the evolution of banking amidst an omnichannel revolution, highlighting demographic shifts, innovations in technology like mobile payments and biometrics, and the increasing need for banks to personalize customer experiences. It emphasizes that banks face new competition and must adapt by focusing on customer-centric strategies, leveraging data for personalized services, and building trust to remain relevant. Key areas of focus include financial empowerment, adapting to technology changes, and understanding customer preferences to enhance engagement.

1. 2015 BANKING2015 BANKING
TRENDSTRENDS
STAYING TOP OF MIND DURING THE
OMNICHANNEL BANKING REVOLUTION

2. WHAT WE WILLWHAT WE WILL
COVER TODAYCOVER TODAY
Statistics: Demographics, Banking has
changed, Competitors
Innovation: Devices, Mobile Payments,
Biometrics, Wearables
Being Top of Mind: How banks can
stay relevant
Data: Personalizing & Creating ROI
From Digital

3. LETS LOOK ATLETS LOOK AT
THE STATSTHE STATS
Changing shift in demographics
How banking has changed
Your new competitors

4. DEMOGRAPHICS AREDEMOGRAPHICS ARE
CHANGINGCHANGING
"The portion of the population that is currently at
least 65 years old—13 percent—is expected to
reach about 20 percent by 2050"
-THE SMITHSONIAN
"$16 trillion in wealth is going to be
exchanged between generations in the
next 30 years"
-WEALTH-X AND NFP FAMILY WEALTH TRANSFERS REPORT

5. FACTS ABOUTFACTS ABOUT
BOOMERSBOOMERS
45% of Baby Boomers and Seniors actively
use online/ mobile banking
Biggest users of online and have the
longest OLB sessions
Biggest adopters of bill pay (The Financial Brand)
iPads & tablets are their second most
used device (Nielsen)

6. WELCOME TO THE NEWWELCOME TO THE NEW
WORLD WHERE...WORLD WHERE...
"53% of Millennials would rather lose their sense
of smell than their technology"
-NEWSCRED
"The average person now has an
attention span of 7 seconds vs.
​8 seconds with a goldfish"
-NEWSCRED

7. THE "ME" GENERATION ISTHE "ME" GENERATION IS
VERY DEMANDINGVERY DEMANDING
23%
2010
41%
2011
44%
2012
60%
2012
Users Demand Better Mobile Banking
% who say mobile banking was important in switching banks

8. BANKING HAS CHANGEDBANKING HAS CHANGED

9. BANKING NEEDS TOBANKING NEEDS TO
BE PERSONAL. FOR MOSTBE PERSONAL. FOR MOST
CONSUMERS IT IS NOT...CONSUMERS IT IS NOT...
"71% of consumers believe their
relationship with their bank is
only transactional"
-ACCENTURE
"An average company hears from less
than 5% of its unhappy customers"
-RUBY NEWLL-LEGNER

10. BANKING NEEDS TOBANKING NEEDS TO
BE PERSONAL. FOR MOSTBE PERSONAL. FOR MOST
CONSUMERS IT IS NOT...CONSUMERS IT IS NOT...
"However, 81% of customers who switched
brands say the company could have acted
differently to retain their loyalty"
-ACCENTURE

11. CONSUMERS ALSO NOWCONSUMERS ALSO NOW
INTERACT WITH FI'S MOREINTERACT WITH FI'S MORE
THAN EVERTHAN EVER
"Consumers Now Interact With Banks 15-20
Times Per Month, Up From 3-4 Times In The
Pre Digital Era"
-NETFINANCE

12. DIGITAL JUST CANNOT BEDIGITAL JUST CANNOT BE
COMMODITIZED....COMMODITIZED....
"Online and mobile banking will not yield the best results if they
are not combined with customized services.
Banks need to understand the specific needs and preferences of
their clients, and be sensitive and open to client concerns. This is
how banks will build an empathic relationship."
-BBVA COMPASS 12/16/14 BANKING REPORT

13. YOUR NEWYOUR NEW
COMPETITORSCOMPETITORS
A 61% Decline In
The Number Of
Banks In The Last
30 Years, While
Deposits Up 300%+

14. YOUR NEWYOUR NEW
COMPETITORSCOMPETITORS
"Up to half of the world's banks will
disappear through the cracks opened
up by digital disruption of the industry"
-BBVA CHAIRMAN AND CEO FRANCISCO GONZALEZ
"72% of millennials would be likely to bank with
non-financial services companies with which they
do business [like Google or Amazon], compared
to 27% for those over 55"
-ACCENTURE

15. BRETT KING ON SANTANDERBRETT KING ON SANTANDER
"Banks like Santander need to understand that the ECONOMICS of
banking are fundamentally changing, and doubling down on
branches is investing in indefensible modality. Listen to this sage
advice from Alibaba's founder Jack Ma.
The message is a simple one. If WalMart wants to get 10,000 new
customers they have to build a new warehouse, a number of new
storefronts, etc. What does Alibaba do? It adds two servers to its
technology stack."
-BRETT KING

16. WE HAVE ALL SEENWE HAVE ALL SEEN
THIS BEFORETHIS BEFORE

17. KNOWING THIS, WHERE SHOULD FI'sKNOWING THIS, WHERE SHOULD FI's
PUT THEPUT THE
BIGGESTBIGGEST
FOCUS?FOCUS?

18. FOCUS ON BEINGFOCUS ON BEING
CONSUMER'SCONSUMER'S
PRIMARY FIPRIMARY FI &&
CONSTANTLYCONSTANTLY
TOP OF MINDTOP OF MIND

19. 3 FOCUS AREAS TO ENSURE3 FOCUS AREAS TO ENSURE
YOU STAY TOP OF MINDYOU STAY TOP OF MIND
Financial Empowerment: Empowering members or
customers to lead better financial lives.
Customer Centric: Be customer/member focused and allow
them to interact with you, how they want.
Strategy Shift: Make the necessary technology and internal
structure/mindset shifts to enable this.

20. BANKS NEED TOBANKS NEED TO
BUILD BACK TRUSTBUILD BACK TRUST
"1 in 2 Consumers Have Lost Trust In
Their Banks Since The Financial Crisis."
-INFOSYS

21. KPMG STUDY ON
CHALLENGES FACING
BANKING INDUSTRY
IN THE NEXT 3-5 YEARS

22. DEVICES: WHAT DEVICES AREDEVICES: WHAT DEVICES ARE
ESSENTIAL FOR FI'S NOW- WHATESSENTIAL FOR FI'S NOW- WHAT
SHOULD BE ON THEIR ROADMAP?SHOULD BE ON THEIR ROADMAP?

23. INSTANT GRATIFICATIONINSTANT GRATIFICATION
CAUSED BY DEVICESCAUSED BY DEVICES
"An ever-increasing consumer demand for instant gratification is
seeping into every facet of our lives, including how we bank.
Consumers want to do everything on every device that they own:
laptop, smartphone, phablet or tablet."
-BYL CAMERON, CG'S DIGITAL PRACTICE LEAD

24. WHAT CUSTOMERSWHAT CUSTOMERS
CRAVE FROM DIGITALCRAVE FROM DIGITAL
1. Monitor all accounts in one place
2. Anywhere, anytime
3. Move money when and how they want
4. Security
5. Make it easy, make it work
6. Being able to view and do (action it)
-JAVELIN STRATEGY & RESEARCH

25. WEARABLES-WEARABLES-
WHAT IS THE USE CASE?WHAT IS THE USE CASE?
WILL THEY TAKE OFF?WILL THEY TAKE OFF?

26. WEARABLES: IT'S ALL ABOUTWEARABLES: IT'S ALL ABOUT
REAL-TIME FEEDREAL-TIME FEED
"Wearable technology will deliver the key real-time financial
feedback that is critical in making financially-savvy behavioral changes.
Focusing on specific spending decisions rather than psychology.
Through Moven we can create day-to-day gamification of
financial wellness."
-BRETT KING, FOUNDER AND CEO, MOVEN

27. "Wearable technology will deliver the key real-time financial
feedback that is critical in making financially-savvy behavioral changes.
Focusing on specific spending decisions rather than psychology.
Through Moven we can create day-to-day gamification of financial
wellness."
-BRETT KING, FOUNDER AND CEO, MOVEN
BIOMETRICS,BIOMETRICS,
ARE PASSWORDS DYING?ARE PASSWORDS DYING?

28. USAA PUSHING THEUSAA PUSHING THE
BOUNDARY WITH VOICE &BOUNDARY WITH VOICE &
FACIAL RECOGNITIONFACIAL RECOGNITION
"USAA’s facial
recognition requires
users to look at the
screen and, when
prompted, blink their
eyes. For voice
recognition, users must
read a short phrase"
-USAA'S PRESS RELEASE

29. MOBILE PAYMENTSMOBILE PAYMENTS
How much longer until we reach a tipping point?
Will the October 2015 EMV deadline result in
mass merchant adoption?

30. "Apple Has Now Signed Up 750 Banks &
Credit Unions For Apple Pay"
-TIM COOK, CEO, APPLE
“2/3 of Contactless Payments Since October
Have Been Through Apple Pay”
-TIM COOK, CEO, APPLE

31. HOW DO YOU PERSONALIZEHOW DO YOU PERSONALIZE
A DIGITAL BANKINGA DIGITAL BANKING
EXPERIENCE?EXPERIENCE?

32. DATA IS THE NEW GOLDDATA IS THE NEW GOLD
“More data has been created in just the last
two years than in the entire previous history of
the human race”
-SCANDINAVIAN RESEARCH GROUP SINTEF
"Wal-Mart collects more than 2.5 petabytes of
data every hour from its customer transactions.
One petabyte is equal to about 20 million filing
cabinets worth of text."
-HARVARD BUSINESS REVIEW

33. DATA IS THE NEW GOLDDATA IS THE NEW GOLD
“Banks have goldmines of data available to them.
However, it is not just about the data you collect. It’s
how you mine it, interpret it and draw insights to
provide personal customer experiences, which can
be quickly deployed across the organization”
-NETFINANCE
“Yet the vast majority of data never gets used.
Only 0.5 percent of all data is ever analyzed.”
-MIT TECHNOLOGY REVIEW

34. BANKING NEEDS TOBANKING NEEDS TO
BE PERSONAL. FOR MOSTBE PERSONAL. FOR MOST
CONSUMERS IT IS NOT...CONSUMERS IT IS NOT...
"Very little in digital banking right now is
personal, almost nothing about digital drives
emotion. Data has to be used to drive that"
-OMNI-CHANNEL EXECUTIVE, TOP 50 BANK

35. USING DATA TO HELP CUSTOMERSUSING DATA TO HELP CUSTOMERS
MAKE BETTER DECISIONS:MAKE BETTER DECISIONS: WHEN WASWHEN WAS
THE LAST TIME YOU OFFERED YOURTHE LAST TIME YOU OFFERED YOUR
CUTOMERS PERSONALIZED ADVICE?CUTOMERS PERSONALIZED ADVICE?
"67% of Millennials are interested in their bank providing tools
and services which help them create and monitor a budget,
compared to 31% for those over 55."
-ACCENTURE

36. USING DATA TO BEAT COMPETITORS:USING DATA TO BEAT COMPETITORS:
CUSTOMERS AREN'T JUST USING YOURCUSTOMERS AREN'T JUST USING YOUR
PRODUCTS,PRODUCTS, THEY ARE USING YOURTHEY ARE USING YOUR
COMPETITORS TOO...COMPETITORS TOO...
“While the number of financial products held by a
typical household hovers around 10, most customers
only hold 2-3 services at any one institution.”
-JIM MAROUS, FINANCIAL BRAND

37. BEING TOP OF MIND: HOWBEING TOP OF MIND: HOW
CAN BANKS/CREDIT UNIONSCAN BANKS/CREDIT UNIONS
STAY REVELANTSTAY REVELANT
What Role Does A Bank or Credit Union
Play In This New Era?
What Value Do They Bring To Customers?

38. 3 FOCUS AREAS TO ENSURE3 FOCUS AREAS TO ENSURE
YOU STAY TOP OF MINDYOU STAY TOP OF MIND
Financial Empowerment: Empowering members or
customers to lead better financial lives.
Customer Centric: Be customer/member focused and
allow them to interact with you, how they want
Strategy Shift: Make the necessary technology and
internal structure/mindset shifts to enable this

39. CISCO'S STRATEGY TOCISCO'S STRATEGY TO
BE DIGITALLY FOCUSEDBE DIGITALLY FOCUSED
"Invest in a future-proof, omnichannel-ready
infrastructure that accommodates new interaction channels
and is integrated into existing core banking apps.
Restructure the organization around customers and
channels rather than existing product-centric models."
-CISCO (2012)

40. HOW DO YOU WORK WITHHOW DO YOU WORK WITH
FINANCIAL DISRUPTORS?FINANCIAL DISRUPTORS?
“Millennials fully expect innovation in banking to come from
outside of the industry. Offering digital banking won’t be
enough to build a long-lasting relationship …
Instead, banks & credit unions should create a strategy
for this segment.
FI’s should advise young people on how to manage their
finances, seek millennials’ feedback, hire young employees,
and partner with financial disruptors."
-BBVA COMPASS

41. THE NO 1. ROI GOAL: SERVE AS YOURTHE NO 1. ROI GOAL: SERVE AS YOUR
CUSTOMERS' PRIMARY BANKCUSTOMERS' PRIMARY BANK
Win over MoneyHawksWin over MoneyHawks
Increase Profitability of CustomersIncrease Profitability of Customers
Targeted, cross-selling opportunitiesTargeted, cross-selling opportunities
ACQUISITION
Building Back TrustBuilding Back Trust
Providing Personalized AdviceProviding Personalized Advice
Greater UXGreater UX
LOYALTY
Win customers from competitorsWin customers from competitors
Prime bank means top of mind whenPrime bank means top of mind when
customers looking to buy.customers looking to buy.
Develop fee based services for highDevelop fee based services for high
end customersend customers
REVENUE
Cut costs through self service channelCut costs through self service channel
COST

42. MX helps FIs become their account
holders’ primary institution
Learn more at MX.COM

43. IMAGE SOURCESIMAGE SOURCES
•
-Lendingmemo.com
- Castor & Pollux (Noun Project)
- Veronika Karenina (Noun Project)
- Tonielle Krisanski (Noun Project)
https://www.flickr.com/creativecommons/ - Jason Grube (Noun Project)
- EliRatus (Noun Project)
- Irene Trautluft (Noun Project)
- Takao Umehara (Noun Project)