What do customers think of Financial Services brands? What cultural trends should Financial Services brands take note of. This deck hopefully gives you everything you need to know. Thanks to Zoe Decool for research help.

1. prilFINANCIAL SERVICES:
Insight & trends
March 2013
@NadsBads
@InnovationSoc

2. CUSTOMER INSIGHT

3. #1: the relationship is broken, now to mend it - problem
Growing sense of defiance and resistance among customers
Patience for businesses that have put customer interest on the backburner is thinner than
ever. People are standing up to voice that they are not happy as they realize they‘ve
grown complacent, and that maybe they‘re not being treated as fairly as they think.
Reinventing Financial Services: what consumers expect from future banks and insurers. Roger Peverelli, Reggy de Feniks / 2013Edelman Trust Barometer. Trust in financial service.

4. #1: the relationship is broken, now to mend it - solution
“There's no such thing as love; only proof of love.” Cocteau
Re-instating trust i.e. the willingness to be vulnerable to the actions of another person – will be
a slow process. It will require word and action to rebuild both affective and cognitive trust. We
need to look for more opportunities to interact and each time make sure we add value.
Pace in
which trust
is restored
Quality of
interactions
Frequency
of
interactions
= X
Reinventing Financial Services: what consumers expect from future banks and insurers. Roger Peverelli, Reggy de Feniks.

5. #1: the relationship is broken, now to mend it - solution
Mobile and digital are key to drive frequency of interaction
and increase satisfaction as well as advocacy.
Push and pull: be there even whenever they need you
(even if they don‘t know it yet).
Google Now is the one tool that brings together virtually
everything Google knows about you and where you are and
then turns all of this information into a useful dashboard on
your phone.
State Farm (US)
realised that they only
had one point of
contact a year with
consumers - a negative
one to announce an
increase in premium.
So they created the
Pocket Agent, a mobile
app that is ‗always
ready to help‘ – from
claims and driving tips
to insurance covering
and financial planning.

6. #2: The paradox of choice - problem
Reinventing Financial Services: what consumers expect from future banks and insurers. Roger Peverelli, Reggy de
Feniks./ Huffington Post. 2013: The Year Fatigue Set In. January 2013.
While each decision by itself may sound simple, the seemingly endless stream of decisions—
and the pressure to make the ―right‖ choice for each one—can really deplete time, energy,
motivation, and even happiness. It reinforces shortcuts and bias, which leads individuals to
make ―wrong choices‖. Fiscal Phobia has been identified as a real condition and is
exacerbated by things that are out of people's control.
"We have known for a long time that
being able to manage your finances
effectively leads to increased well-being
and a better quality of life, at every given
level of income."

7. #2: The paradox of choice - solution
Reinventing Financial Services: what consumers expect from future banks and insurers. Roger Peverelli, Reggy de Feniks./ TED. Barry Schwartz: The paradox of choice | Video on TED.com. 2009
“If you can't explain it to a six year old, you don't understand it yourself” Albert Einstein
In the eight years since psychologist Barry Schwartz published The Paradox of Choice,
decision fatigue has been settling. Simplicity and transparency will be key yet they will require
differentiation through standout experiences.

8. #2: The paradox of choice - opportunity
Developing more pleasant and seamless experiences
to stand out
WSJ. Italian Bank Cuts Costs but Builds Business. March 2011. / BBC News. Investment decisions based on your personality. January 2013.
CheBanca! makes a point of having customers look at the
same computer screen as the branch employee. The
bank also sends customers a text message after every
remote transaction, which "drastically lowers anxiety" .
Another key tactic is product simplicity. "We offer the
same terms to all,― The uniformity boosts clients'
confidence they are getting a fair deal.
Developing personality based banking e.g. according to
perceptions of risk / behavioural archetypes?
The Barclays behavioural finance team asks clients to complete
a financial personality assessment that is aimed at tailoring their
investment portfolio to their psyche. This goes beyond the typical
financial adviser's questions and ultimately ultimately draws up a
set of rules to govern their investment behaviour e.g. "weekend-
only" investment rule.

9. #3: aspiring to self directedness - problem
Reinventing Financial Services: what consumers expect from future banks and insurers. Roger Peverelli, Reggy de Feniks / Curve. Getty Images. Visual trends in financial services. 2013 /
International adviser. The psychology of protection. May 2012 / Parliament UK. Financial education in schools . January 2013 / Future thoughts. The Hyper Individual. December 2012. /
More people want to take control and decide themselves.
They value expert advice but in later stages of the purchase cycle. TNS Finance said that in
the UK 54% of private investors are self directed. Numbers are huge and growing due to gen
y and x coming to market – who grew up digitally and for who being self directed is second
nature - but also due to the abundance of tools and advice on the web which make people
think they can do it themselves… Yet they often remain under-informed and subject to bias.
94% of people think that financial education for
young people is important in the current
environment. Society is changing, making
financial education ever more important.
Parliament UK.

10. #3: aspiring to self directedness - solution
Curve. Getty Images. Visual trends in financial services. 2013.
“The most courageous act is still to think for yourself” Coco Channel
Following on the crisis consumers are determined to regain control. This is translated into a
desire to progress financial education as well as being empowered to make better decisions -
notably through data.

11. #3: aspiring to self directedness - opportunity
Curve. Getty Images. Visual trends in financial services. 2013.
A sharpened focus on finance creates the opportunity for coaching
mechanisms. Combing coaching with community could also pave
the way for services that let consumers turn to their peers into
supporters and advisors.
At the heart of the E.ON energy experiment are five energy
tracking apps. Each app helps cover different audiences and
needs. All the apps tie up to a website that enables users to
relate their efforts to those of the wider community.
There is also an opportunity to teach and help consumer to achieve
higher level of self directedness. For instance can we take part in
government initiatives?

12. #4: No to commitment - problem
Simple living
Consumer are more cautious of financial commitment and pending across sectors compared
to just a few years ago. This is part of a broader movement towards simpler and decluttered
lifestyles – making life smoother, quicker,more convenient and a lot less stressful.
Future Foundation ―Ish‖. 2013 / Experian. Young and not so reckless; how to engage digital natives over the long term. January 2013
20% less than the so called middle aged
‗safe bets‘ due to their awareness of
potential financial penalties. Experian
According to the You Gov debt tracker,
there has been a four-fold drop over the last
three years in younger groups taking on
large financial commitments without
considering the consequences. Experian

13. #4: No to commitment - solution
―Freedom is the power to choose our own chains‖ Jean-Jacques Rousseau
Consumer are increasingly non-committal – more hesitant to enter into long-term contracts
and more likely to shop around. They will more than ever be asking just what does my loyalty
to my insurance company actually bring me? Should I start to de-clutter my lifestyle and stay
free of commercial entanglements?
Future Foundation ―Ish‖. 2013

14. #4: No to commitment - opportunity
To build value in the long term, we will have to work harder to be
relevant to our audience‘s specific interests.
Or is it about going with the flow and developing products that fits
this short-term mindset?

15. #5: The new financial unit / insight
Future foundation. Finance 2020 / The Telegraph. Boomerang generation force parents to retirement dreams on hold. October 2012/ Pew Research. The Sandwich Generation. January 2013.
Say hi to the sandwich generation
The rising costs associated with education and housing coupled with a competitive job market
mean that parental responsibilities stretches further into the adult lives of their offspring. And, as
populations age increase, retired relatives become a growing financial concern too. The ―sandwich
generation‖ has to displays a growing sense of responsibility for the welfare of the family.

16. #5: The new financial unit / challenge
TED Rachel Botsman: The currency of the new economy is trust. September 2012.
“Happiness is having a large, loving, caring, close-knit family in another city” George Burns
New financial pressures are prompting families to manage finances together – functioning
increasingly as financial units – with financial advice and support shared across generations.
Financial service providers need to adapt their products and services to this demographic evolution
- this shift towards group-oriented product can already be observed in other categories.
Future foundation. Finance 2020 / The Telegraph. Boomerang generation force parents to retirement dreams on hold. October 2012/ Pew Research. The Sandwich Generation. January 2013.

17. #5: The new financial unit / opportunity
Opportunity to create new familial / multigenerational
product offers
As well as new technology that allow families to manage
finances together.

18. CULTURAL TRENDS

19. #1: Purposeful brands/ trend drivers
Reevaluating values: Values and morale are
increasingly important around the globe, which
has led to growing focus on ethics.
This has translated into demand for common
decency – i.e. recommend and sell only
products that you would sell yourself and treat
customers like you would treat yourself.
Durable lifestyles: realization that we‘re in for
a marathon not a sprint with a move towards
betterment, and more sustainable living.
Companies need to pay longer term dividends
as consumers are increasingly looking
for brands that last.
Déclassé consumption: anxiety about the
value of money - how wealth disappeared so
quickly.
This loss of belief is experienced by
consumers – how solid are my investments?
What is my money really worth? Is my home
worth the same or less than when I bought it?
Reinventing Financial Services: what consumers expect from future banks and insurers. Roger Peverelli, Reggy de Feniks / 2013Edelman Trust Barometer.
Trust in financial service. / John Gerzema: The post-crisis consumer. October 2009. / Curve. Getty Images. Visual trends in financial services. 2013.

20. #1: Purposeful brands / trend
Consumers and financial services companies both need to address the theme of responsibility,
moving on from looking at one‘s own future to showing responsibility for the collective good. But
brands will have to lead the way.
Developing a purpose beyond commercial objectives delivers a competitive advantage. Brands are
now launching initiatives adding value to society (not restricted to sustainability), not just
shareholders – understanding the ―why‖ as well as the ―what‖ and how‖. The most forward thinking
programmes have been company-changing.
Reinventing Financial Services: what consumers expect from future banks and insurers. Roger Peverelli, Reggy de Feniks /Curve. Getty Images. Visual trends in financial services. 2013. /
Contagious. Purposeful brands. February 2013.
“The notion that the only
thing we can do to
restore prosperity is just
dismantle government,
refund everybody's
money, and let
everyone write their own
rules, and tell everyone
they're on their own—
that's not who we are.”

21. #1: Purposeful brands / best practice
―Paul Polman, the chief executive of consumer goods giant Unilever, is in a league of his own when
it comes to being the leader of a multinational company challenging the corporate status quo. The
leader believes there is a fundamental readjustment going on as a result of the financial crisis, from
a rules-based society back to a principles-based society.
Unilever‟s Sustainable Living Plan: Polman launched the company's Sustainable Living Plan in
November 2010. The programme seeks to double sales and halve the environmental impact of its
products. There is also a commitment to improve the nutritional quality of its food products – and
link more than 500,000 smallholder farmers and small scale distributors in developing countries to
its supply chain.
Polman says the plan has already had a profound impact on the way the company does business:
"When we look at our supply chain, we think about smallholder farmers, we think about women and
employment, we think about land rights, we think about biofuels and because we think about this
holistically, our plants are getting better, our sourcing is getting better, these communities have a
chance of functioning."
"I don't think our fiduciary duty is to put
shareholders first. I say the opposite. What we
firmly believe is that if we focus our company on
improving the lives of the world's citizens and come
up with genuine sustainable solutions, we are more
in synch with consumers and society and ultimately
this will result in good shareholder returns.”
Link to the plan
The Guardian. Unilever's Paul Polman: challenging the corporate status quo. April 2012.

22. #2: being closer / trend drivers
Equals: consumers are more likely to trust
peers and experts than brands. Nielsen showed
that 70% of global consumers trust online
consumer reviews, an increase of 15% in four
years.
With less control over their image, brands gain
by putting the needs of their customers first.
Small is beautiful: Economist EF
Schumacher‘s book ‗Small Is Beautiful‖
suggested that we need to downsize, re-
organize how we make things and how we live.
Today, ―as confidence in big banks has been
falling, the public‘s trust in small ones has been
climbing.‖ Janet Novack in Forbes.
With less control over their image, brands gain
by putting the needs of their customers first.
On demand: consumers are expecting instant
information and gratification – on and off-line.
This is accentuated by a feeling of being time-
starved. Datamonitor found that 44% of
consumers now say that it‘s difficult to manage
their daily obligations and find time to relax.
Brands need to satisfy consumer demand for
ultra-convenience and empower them to make
the most of their service.
Trendwatching. Trends briefing: servile brands. October 2012 / Contagious Magazine. Marketing as service
design. September 2012 / Forbes. Americans' Trust In Banks Falling; Thank You, JP Morgan. July 2012. /
Curve. Getty images. Small is the new big. 2013

23. #2: Being closer / trend
. / New consumers. Economies go alternative. December 2012.
For lots of people, globalization didn‘t bring much good. So they‘ve been turning to something they
know: the local, authentic and human. This leads brands to behave differently – on a smaller scale
and more human way.
For service and commodity brands, there is an opportunity to create positive ―moments of truths‖
during those few interactions when consumers have an unusual amount of emotional energy
invested in the outcome. This notably means being present when consumer are more likely to be
warm and receptive.

24. #2: Being closer / Best practice
Create
moments
Eat
better
Minimise
effort
Save
money
With Live Well For Less, Sainsbury‘s aims to inspire and enable people with real lives and
budgets to make the most of their everyday experiences through great products and services.

25. #3: Beyond prices / trend driver
Reinventing Financial Services: what consumers expect from future banks and insurers. Roger Peverelli, Reggy de
Feniks / Admap. Retail emotional affinity. February 2013. WARC Exclusive / Kantar retail. The Future Shopper . 2013.
Cut through: There recession has led to a
surge in price driven promotions. In the UK
grocery market, for example, over 70% of
advertising in 2011 was still estimated to be
purely price-driven
To survive this onslaught, some service brands
have tried and make an emotional connection
with shoppers.
In search for quality: Frugality is a coping
mechanism not as an aspiration. The ambition
is not to trade off everything for price because
consumers everywhere still want value-added
products.
There is an opportunity for brands to create
preference by developing value-added product
and services.
Knowing the Joneses: An increasing reliance
on peers and community has helped take
consumers‘ attention to higher priorities than
just price. Added value and service becoming
more important purchase drivers.
This surge in information and peers exchange
has led consumers to expect more but pay less.

26. #3: Beyond prices / trend
Warc Best Practice. Value propositions. September 2011 Admap. Retail emotional affinity. February 2013. / Kantar retail. The Future Shopper . 2013.
Consumers are redefining what value means to them and, thus, what does or does not warrant the
extra dollar. So the most important question facing marketers is what sort of value will animate the
connection between consumers and brands.
―For the future shopper, value will move beyond simply price to a message from the retailer that the
shopper is making a ‗smart‘ decision to purchase from them. Retailers catering to the ‗smart‘ need
state of the future shopper are experts on one of the components of the new value equation:
In the Discipline of Market Leaders, Michael Treacy and Fred Wiersema suggested that companies
can create value in one of three ways: operational excellence (experience), product leadership
(quality), customer intimacy (service)

27. #3: Beyond prices / best practice
John Lewis's commitment to 'Never knowingly undersold' was introduced by John Spedan
Lewis in 1925. He already intended it not just as a price promise but as a total trading philosophy:
all products will be the best quality for the price and expert advice will add additional value.
As the recession continued it was felt that the time was right to return to the broader meaning
of 'Never knowingly undersold„ and put it back at the heart of the brand. The resulting
communications including were emotional demonstrations of John Lewis's constancy through the key
moments of a customer's life, implying that in a world that now felt very changeable John Lewis
remains a beacon of stability, offering permanent and multi-dimensional good value.
Institute of Practitioners in Advertising. Gold and Grand Prix, IPA Effectiveness Awards. John Lewis: Making the nation cry...and buy. 2012