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Beyond the Everyday Bank
The document discusses the consumer-to-business (C2B) revolution led by major tech companies like Google, Apple, Facebook, and Amazon, emphasizing the need for businesses to adapt to the evolving consumer agenda. It highlights the importance of digital transformation in banking, calling for banks to establish strategic directions and efficiently execute digital agendas while engaging customers through innovative services. Additionally, it underscores the competitive landscape where banks must leverage technology to offer personalized financial propositions and maintain relevance in customers' lives.
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Beyond the Everyday Bank
- 1. GAFA Banking >Business Winning the consumer-to-business revolution triggered by Google, Apple, Facebook and Amazon
- 2. Everything starts withthe evolving consumer agenda 2Copyright © 2016 Accenture All rights reserved. ALWAYS CONNECTED connected devices per person in 2020 (~33B connected devices globally in 2020) ~4.5 Source: Accenture, IoT Business Overview, 2015 EXPECTS BUSINESSES TO COMPENSATE FOR ENDORSEMENT 57% MOBILE-ORIENTED79% CONTRIBUTES TO BRAND PERCEPTION25% PARTICIPATES AND HAS A VOICE80% INFLUENCES OTHERS’ PURCHASING DECISIONS20% SOCIALLY- CONNECTED30%
- 3. “Consumer-to-Business” (C2B) modelsare emerging 3Copyright © 2016 Accenture All rights reserved. Living Services System (omni-device: mobile, home, vehicle, health) • Consumer driven • Open platform • Contextual & real-time engagement • Customer-centered journeys • Co-creation and reviews • Expect businesses to compensate for endorsement Google Apple Facebook Amazon Alibaba Airbnb Expedia OnDeck Moven … Content generation Reviews Facebook likes Blogs Co-creation Comparison sites Input from IoT devices
- 4. GAFA are leadersin C2B business and set market standards in terms of customer engagement 4Copyright © 2016 Accenture All rights reserved. … My Shopping My Money My Entertainment My Travel My House My Health Notes: 1. Google search share in July 2015; 2. iOS Traffic Share in Q1 2015; 3. Data referred on U.S. Market for August 2015;. 4. Bloomberg estimate for 2016; 5. Data referred on 2014 Source: Opera Mediaworks Website, 2015; Bloomberg Business website, 2013; Statista website, 2015; Bloomberg Business website, 2014 90% Share of searches1 Google Wallet Google Google Play YouTube Google Maps Google Fit Nest 22% Share of smartphone web traffic2 Apple Pay Apple Apple Store iTunes Apple iCar HealthKit Apple TV Apple Store 45% Share of social media3 Payments in Messenger Facebook Facebook Buy Oculus Rift Facebook Moves Parse 23% Share of worldwide e-commerce market4 Amazon Payments Amazon Amazon Kindle Amazon Marketplace Amazon Home Services Amazon.com
- 5. Banks need tomove fast 5Copyright © 2016 Accenture All rights reserved. Which company do you trust the most with securely managing your data on your behalf? If these companies offered banking services, how likely would you be to bank with them? (Likely or very likely) Source: Accenture, “Banking shaped by Customer”, 2015; Accenture “The Digital Disruption in Banking”, 2014
- 6. Banks need tofocus on 4 key decisions 6Copyright © 2016 Accenture All rights reserved. • Strategic Direction • Digital Agenda Design • Digital Governance Set Up • Digital Execution Execute the DIGITAL AGENDA • Digital Culture • Liquid Customer Engagement and CRM • Digital IT Architecture • E2E Process Digitization Address KEY ENABLERS • Digitally Powered Financial Propositions (Physical + Digital) • Experiential Living Services propositions • New Businesses Compete across a PORTFOLIO OF BUSINESSES • Relationship Player • Platform Provider • “Core FS” Utility/Manufacturer • Digital ID Enabler • Innovation Playmaker Understand the PORTFOLIO OF ROLES
- 7. Relationship Player Own therelationship with the customer, building innovative personas to drive fulfilling experiences Platform Provider Open platform for sellers, buyers and content providers to interact, using strong C2B behaviors (ratings, review, affiliate schemes in place) Core FS Utility/Manufacturer Package and provide FS externally to others, through a utility approach – high volume, low cost, industrialized Digital ID Enabler Provide authentication of Digital ID (for 3rd parties, nationally) and safe-guarding privacy Innovation Playmaker Engender innovation across multiple non-exclusive plays: Innovator, Incubator, VC, FinTech Understand the PORTFOLIO OF ROLES where multiple, non-exclusive roles exist 7Copyright © 2016 Accenture All rights reserved. Moven Simple Fidor Bank Lending Club TransferWise Amazon Uber Kickstarter Paypal First Ripple Alipay Google Facebook Apple Andreessen Horowitz AngelList CitiVentures BBVA Ventures Typical systemic/ universal bank High intensity High intensity High intensity High intensity High intensity High intensity High intensity Medium intensity Medium intensity Low intensity
- 8. Compete across aPORTFOLIO OF BUSINESSES to be relevant in Customers’ lives and develop new revenue streams 8Copyright © 2016 Accenture All rights reserved. GAFA Banking > Business
- 9. Address KEY ENABLERS 9Copyright© 2016 Accenture All rights reserved. Digital Leadership – diffused, savvy, high DQ, experimental New Roles – data scientist, behavioral psychologist, story-tellers, scrum master New Skills – community management, social media & content management, customer experience design, ecosystem management, agile development Customer Insight leveraging the data lake, mind-set segmentation Marketing Automation delivering seamless contextualized interactions Customer Interactions in the extended ecosystem Liquid highly decoupled, granular components created/ customized in agile way Intelligent embedding robotics & cognitive computing Connected API-driven Smart distributed consensus ledgers & smart contracts for real-time low-cost transactions Visible + Invisible Digital from end-to-end Minimal manual intervention Real-time response, and reposting Robotic processing Reduced cycle-time
- 10. Execute the DIGITALAGENDA 10Copyright © 2016 Accenture All rights reserved. APPROACH KEY PRINCIPLES Digital Execution Digital Governance Set-up Digital Agenda Design StrategicDirection Digital Agenda priorities and targets Digital Culture Business objectives aligned with key levers Speed of execution E2E process transformation Digital performance management Enabled technology platform Governance set-up
- 11. Learn more about howa GAFA approach to digital banking transformation will change everything. Beyond the Everyday Bank 11Copyright © 2016 Accenture All rights reserved.
Editor's Notes
- #2 Digital is rapidly evolving Banking into Consumer-to-Business (C2B) areas, driven by GAFA customer experience, abetted by the concept of Living Services and of liquid customer expectations Banks will face intense challenge, chiefly through the proliferation of digital initiatives already in place and in need of further investment, and by the shortage of necessary specialized, Digital skills: we estimate 80% of current banking revenues could be delivered through different business models by 2020 Banks need to make speedy decisions on “pivot points” and key Digital Agenda areas, namely: Define the roles they wish to play across Financial Services: typically combinations of Relationship player, Platform provider, Core FS Manufacturer, Digital ID enabler, Innovation playmaker Select the businesses to focus, including: Digitally-powered financial platforms, providing easy and simple experiences. Platforms are typically by segment (i.e. Affluent, Small Business, Corporate and also Millennials, etc.) Experiential Living Services addressing core Customer needs, leveraging Internet of Things as appropriate (i.e. Housing, Healthcare, Travelling) New Businesses, like launch of Digital Attacker, Digital VAS for SMEs and Corporates, Data Monetization, etc.) This portfolio of business initiatives is developed to provide not only new revenue streams but also to multiply customer interactions/ touch-points, and generate value for the Bank through cross- and up-sell opportunities for digitally-powered financial propositions Deploy key enablers, such as Digital Culture, skills and organization; Liquid Customer Engagement and CRM, Digital IT Architecture and End-to-End Process Digitization These decisions will warrant the need to consider objectively the starting point (skills, technology, etc.), the business direction (new customer/ geo segments, etc.) and the range of the opportunity (competition, where the money will be) Additionally, articulating the Digital Agenda will highlight the need for coopetition strategies With FinTechs – in view of the “pivot points” focused upon With Digital leaders such as GAFA, to engage customers where they spend time (and money) Key steps in the journey include: Statement of Strategic Direction Designing Digital Agenda Set-up/ update Digital Governance Digital Execution We believe there is significant and compelling value for Banks to follow this path, at speed: Remain at the centre of customers’ lives and needs Access new revenue opportunities Stave off impending competitive forces Develop “exponential” business models – to eventually develop new opportunities, quickly Accenture can support Banks in this complex journey by bringing to the table an arsenal of visions, assets, capabilities, access to innovation sources, together with industrialized managed services to act as accelerators.
- #3 Contributes to Brand Perception --Search results for the world’s top 20 brands are links to user-generated content Expects Businesses to Share-Back Value -- US Consumers likely to abandon an online purchase if an answer to an online purchase is not immediately forthcoming Influences Others Purchasing Decisions -- UGC-based campaigns proven are 20% more influential on purchasing decisions than any other type of media and marketing professionals Mobile Oriented --Smartphone owners that use their phone for shopping purposes Participates and Has a Voice -- Customers prefer online ratings and reviews to advices from store employees Socially Connected -- Of mobile time is spent on social media accounts
- #5 C2B ON THE GROUND Google AdSense allows for revenues/profits to be attributed to bloggers/ webmasters Apple allows for app developers to extend the functionality of their phone/tablet hardware Facebook enables consumers to share massive user generated content Amazon enables customers to review products and rate merchant
- #11 1. Clearly articulated Digital Agenda with shared priorities and clear targets 2. Disseminated Digital Culture across the organization 3. Business objectives aligned with key levers and clear accountability 4. Speed of execution 5. E2E process transformation – aligned with Customer Journey simplification 6. Digital performance management, starting with Customer indicators 7. Enabled technology platform to provide reach and flexibility 8. Governance set-up reflects new needs