How Bank digital modernization improve customer experiences

1. Christian Hermanus

2. DIGITAL MODERNIZATION
CUSTOMER EXPERIENCES
EXAMPLE OF DIGITAL MODERNIZATION
KNOW YOUR CUSTOMER
BANK DIGITALIZATION
DON’T FORGET BASIC THING
1
2
a
b
a
c
INTEGRATED CUSTOMER EXPERIENCESb
AGENDA
DIGITAL BANKING IN INDONESIA3

3. DIGITAL MODERNIZATION
CUSTOMER EXPERIENCES
EXAMPLE OF DIGITAL MODERNIZATION
KNOW YOUR CUSTOMER
BANK DIGITALIZATION
DON’T FORGET BASIC THING
1
2
a
b
a
c
INTEGRATED CUSTOMER EXPERIENCESb
AGENDA
DIGITAL BANKING IN INDONESIA3

4. 4
DIGITAL BANKING DOEST NOT EXIST ON WIKI
http://wikipedia

5. 5
EXAMPLE OF DIGITALIZATION
http://www.engage.it/cms/wp-content/uploads/2014/02/tablet-reading.jpg
Newspaper and magazines, transform form paper to digital

6. 6
EXAMPLE OF DIGITALIZATION
http://www.keynote.com/~/media/139885549E114E09B2874E9A915F82A2.jpg?la=en
Store, transform form brick & mortar to online store

7. 7
BANK DIGITALIZATION
ATM, Phone Banking, Point Of Sales EDC,
Internet Banking and Mobile Banking
=
Digital Banking
?

8. and a focus on customer experience.
8
DIGITAL BANKING
A new concept in the area of electronic banking,
which aims to enrich standard online and mobile banking services
for example strategic analytics tools, social media interactions,
by integrating digital technologies
, mobile technology
http://www.carolinemoeckel.com/defining-digital-banking/
Innovative payment solution

9. 9
DRIVERS TO ADOPT DIGITAL BANK
DRIVER
Increase
Number of
Customer
Minimize
operational
cost

10. 10
ASEAN DEMOGRAPHY
AGE Brunei Indonesia Malaysia Philippines Singapore Thailand TOTAL
0-14 102,287 66,445,726 8,661,126 36,284,194 746,018 11,922,487 124,161,838
15-24 73,123 43,367,249 5,082,397 20,456,964 990,980 10,161,210 80,131,922
25-54 198,235 107,276,879 12,390,221 39,837,245 2,800,352 31,770,717 194,273,650
55-64 32,123 20,035,162 2,285,575 6,244,757 556,730 7,383,813 36,538,160
>65 16,907 16,484,627 1,654,034 4,845,070 473,221 6,435,433 29,909,292
80
Million
40
Million

11. 11
ASEAN & AUSTRALIA 2020
Digital Banking in Asia - McKinsey & Company

12. 12
MINIMIZE OPERATION COST
BRANCH MOBILE
US$ 4.25
US$ 0.10
http://www.monitise.com/insights/2014/10/30/can-traditional-banks-compete-digital-centric-world/
Cost
Per
Transaction

13. 4
13
1st PART TAKE AWAY
1 Bank need to make more profit
2
To make profit bank have to Increase number
of customer while at the same time minimize
operational cost.
3
Digital banking is not just another terminology
of electronic banking. It is a new concept that
covers wide area of banking technology.
Bank Digitalization will bring new customer
experiences
5
Our potential market segment is the age of 15
to 24 years old.

14. DIGITAL MODERNIZATION
CUSTOMER EXPERIENCES
EXAMPLE OF DIGITAL MODERNIZATION
KNOW YOUR CUSTOMER
BANK DIGITALIZATION
DON’T FORGET BASIC THING
1
2
a
b
a
c
INTEGRATED CUSTOMER EXPERIENCESb
AGENDA
DIGITAL BANKING IN INDONESIA3

15. 15
CUSTOMER EXPERIENCE
http://en.wikipedia.org/wiki/Customer_experience
KNOW OUR
CUSTOMER
INTEGRATED
CUSTOMER
EXPERIENCES
DON’T FORGET
BASIC THING
1 2 3
Principles for increasing customer experiences :
Customer experience is the sum of all experiences a
customer has with a supplier of goods or services,
over the duration of their relationship with that
supplier.

16. 16
AGE Brunei Indonesia Malaysia Philippines Singapore Thailand TOTAL
0-14 102,287 66,445,726 8,661,126 36,284,194 746,018 11,922,487 124,161,838
15-24 73,123 43,367,249 5,082,397 20,456,964 990,980 10,161,210 80,131,922
25-54 198,235 107,276,879 12,390,221 39,837,245 2,800,352 31,770,717 194,273,650
55-64 32,123 20,035,162 2,285,575 6,244,757 556,730 7,383,813 36,538,160
>65 16,907 16,484,627 1,654,034 4,845,070 473,221 6,435,433 29,909,292
KNOW OUR CUSTOMER
http://preciesmark.nl/we-are-spoiled-generation-y-handles-crisis/

17. 17
GEN Y CHARACTER
Tech Savvy
Family
Orientated
Ambitious Team Players
Communicators
www.generationy.com/characteristics/

18. 18www.generationy.com/characteristics
GEN Y CHARACTER
Tech Savvy
• Surrounded by smart phones, laptops, tablets
and other gadgets
• Prefer to communicate more quickly and
effectively via email, social networks or text
messaging
• Attracted to hi-tech organisations
• Bank need to utilize all available technology to
serve the Gen Y.
• Banks need to create a consistent unified
experience across channels.

19. 19http://www.pewinternet.org/2015/01/09/social-media-update-2014/
Sosial Media Sites, 2012-2014

20. 20https://www.facebook.com/icicibank/
CASE STUDY - Facebook Bank Apps From Icici Bank
Simple
Convenient
Fast

21. 21http://www.socialsamosa.com/2013/10/social-media-campaign-review-pockets-by-icici-bank/
CASE STUDY - Facebook Bank Apps From Icici Bank

22. 22www.generationy.com/characteristics/
GEN Y CHARACTER
Prefer flexible working schedules and
a more rounded work/life balance.
Family Orientated
• Bank should present anywhere.
• Bank should operate 24x7

23. 23www.generationy.com/characteristics/
GEN Y CHARACTER
• Confident
• Demanding
• Their expectations are high
Ambitious
• Bank should be able to analyse their
customer behaviour.
• Bank should provide self-service
features on their product.
• Bank’s back office should be flexible
to configure and deploy new
products or reconfigure existing
products quickly.

24. 24
CASE STUDY - FRANK Bank
http://www.frankbyocbc.com/index.html
http://www.theasianbanker.com/press-releases/ocbc-launches-banking-programme-for-youths-and-young-working-adults
Unique
Channels
Unique
Products
Unique
Branding

25. 25
CASE STUDY - FRANK Unique Credit Card Design
http://www.frankbyocbc.com/products_creditcard.html

26. 26www.generationy.com/characteristics/
GEN Y CHARACTER
Team
Players
• Bank should use the same media channel
with Gen Y for promotion, education, and
transaction.
• But on the others hand, bank should watch
any issue on the social media and be able
to respond effectively.
Communicators
• Working as a team.
• Trust the crowd.
• Actively search for information that they
need, ask for advice and opinions online
and through social networks.
• Love to share information

27. 27http://thefinancialbrand.com/18510/asb-bank-virtual-facebook-branch/
CASE STUDY - ASB Virtual Branch
Communication
channel to Customer
Get Customer
feedback
Risk mitigation for
Cyber bullying

28. 28
INTEGRATED CUSTOMER EXPERIENCES
TOUCH POINT
A touch point is any place you touch your
customer and interact with customers.
http://touchpointmetrics.com/resources/guides/touchpoints/

29. 29
INTEGRATED CUSTOMER EXPERIENCES
http://touchpointmetrics.com/resources/guides/touchpoints/
• Each of these touch points builds experiences to Bank’s
customer.
• One bad experience can cause your customer leave your bank

30. 30
INTEGRATED CUSTOMER EXPERIENCES
Awareness
Knowledge
Consideration
Selection-trial
Satisfaction
Loyalty
Advocacy
• The 'prospect' becomes aware of the
Bank and its products or services.
• The 'prospect' gathers information regarding the
features and benefits of the bank’s products or
services.
• The prospect goes through a decision-making
process, during which a decision is made whether
or not to be a customer of your Bank.
• The prospect become a customer.
• The customer is satisfied that features and
benefits did not disappoint.
• The customer re-use your Bank services, or
expresses loyalty in some other way.
• The customer becomes an active
supporter and promoter of the bank and
its products or services.
Marketing for Stakeholders

31. 31
INTEGRATED CUSTOMER EXPERIENCES
Awareness
Knowledge
Consideration
Selection-trial
Satisfaction
Loyalty
Advocacy
3 challenges on implementation
of digital financial services :
• Bank Information System.
• Network availability.
• Customer education and
protection

32. 32
CASE STUDY – FRANK Customer Education
http://www.frankbyocbc.com/frank_tips.html

33. 33
GAMIFICATION
https://www.techinasia.com/playmoolahs-growing-launches-whymoolah-teach-young-adults-finance/
is the concept of applying game mechanics and game design
techniques to engage and motivate people to achieve their goals.

34. 34
INTEGRATED CUSTOMER EXPERIENCES
Loyalty follows the 80-20 rule:
• 80% of all transaction are
ordinary
• The remaining 20% include
task like handling a stolen
credit card or looking for
load.
Awareness
Knowledge
Consideration
Selection-trial
Satisfaction
Loyalty
Advocacy
Service center
is a very
important
touch point

35. 35
DON’T FORGET BASIC THING : FEE

36. • Conceptual
Integrity
• Maintainability
• Reusability
• Availability
• Performance
• Reliability
• Security
• Interoperability
• Manageability
• Scalability
• Supportability
• Testability
• Usability
Design
Qualities
Run-time
Qualities
System
Qualities
User
Qualities
DON’T FORGET BASIC THING : SYSTEM QUALITY
https://msdn.microsoft.com/en-us/library/ee658094.aspx

37. 37
2nd PART TAKE AWAY
1
2
To understand your customer characteristic is
very important.
3
We should develop product that fit with our
customer charateristics
We should manage all of touch point to deliver
consistent exceptional customer experience.

38. DIGITAL MODERNIZATION
CUSTOMER EXPERIENCES
EXAMPLE OF DIGITAL MODERNIZATION
KNOW YOUR CUSTOMER
BANK DIGITALIZATION
DON’T FORGET BASIC THING
1
2
a
b
a
c
INTEGRATED CUSTOMER EXPERIENCESb
AGENDA
DIGITAL BANKING IN INDONESIA3

39. 39http://www.bi.go.id/id/perbankan/keuanganinklusif/program/lkd/Contents/Default.aspx
DIGITAL BANKING IN INDONESIA
March,
2013
November,
2013
Branchless
Banking Pilot
Project
November,
2014
Branchless
Banking
regulation
• Bank Mandiri
• Bank Rakyat Indonesia
• Bank Sinar Harapan Bali
• Bank Tabungan Pensiunan Nasional (BTPN)
• Bank CIMB Niaga

40. 40https://www.btpnwow.com/portal/consumer-portal/login
BTPN

41. 41http://mandiriecash.co.id/
BANK MANDIRI

42. 42http://www.cimbniaga.com/repository/0588index-english.html
BANK NIAGA

43. 43
SUMMARY
Profit
Cost
Loyal
Customer
Improve
Customer
Experience
Product
exceed
Customer
Expectation
Apply new
Technology
Digital
Banking
Know your
Customer
Integrated
Customer
Experence
Low cost &
Hi quality

44. 44
Thank you
christian.hermanus@outlook.com
See more at http://id.linkedin.com/in/christianhermanus.