This document discusses customer expectations for digital banking and how banks can build customer relationships through online and mobile channels. It finds that online and mobile banking are increasingly core to customer relationships. Many customers would switch banks based on the quality of digital offerings. The document also examines how to optimize the customer experience across different devices by tailoring features and design to each platform. It emphasizes aligning digital channels with how customers use their devices to build loyalty and engagement.

1. Michael J. McEvoy
Managing Director
+1.617.243.9500
mmcevoy@athpower.com
www.athpower.com
Engagement Banking:
Building Relationships Through
Online and Mobile

2. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research.
If you plan to switch banks within the next 12 months, what are the main reasons?
11%
11%
12%
13%
16%
20%
21%
22%
24%
25%
28%
52%
58%
0% 20% 40% 60% 80%
Want a bank with better mobile banking
There was a security issue with one or more of my accounts
Other
Do not trust my current bank
Want a bank with better online banking
Current bank has made account errors
Want a bank that has more ATMs
Recommendation by friends/family/colleagues
Want a bank with more convenient banking hours
Want a bank that has more conveniently located branches
Not happy with the customer service at my current bank
Another bank has a good offer or promotion to join
Want better rates and fees on my accounts
Customer Expectations are Rising: Quality of Digital
Channel Offerings Matters More Than Ever
2
Source: ath Power 2012 Ideal Banking Study™

3. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 3
Online Banking is Core to the Banking Relationship
16%
22%
33%
38%
41%
44%
45%
48%
51%
52%
53%
53%
56%
57%
61%
63%
Interest rate or yield on accounts
Level of communication to offer me accounts that fit my needs
Service fees
Quality of financial advising available to you
Number and convenience of the bank’s branch locations and ATMs
Wide variety of products and services
Convenient banking hours
Responsiveness to questions or problems
Availability of information about account options
Level of knowledge/expertise bank employees exhibit
General quality of customer service
Wait times at branches
Offers the ability to conduct most transactions via the Internet
Competence and professionalism of front-line staff
Friendliness of Employees
Serving as a safe and secure place for your money
Satisfaction With Performance Factors of Primary Bank
Source: ath Power 2012 Ideal Banking Study™

4. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research.
49%
37%
30%
27%
30%
26%
10%
17%
24%
14%
16%
20%
0% 25% 50% 75% 100%
Mobile Banking
2010
Mobile Banking
2011
Mobile Banking
2012
Do Not Need Would Like To Have Must Have Would Make Ideal
Soon, Majority of Customers Will Also See Mobile
Banking As Core to Banking Relationship
4
Source: ath Power 2012 Ideal Banking Study™

5. 5%
16%
32%
19%
20%
8%
Multiple times a day
Daily
2-3 times a week
Once a week
1 to 2 times a month
Less than once a month
How often do you use mobile banking with your bank?
72%
Mobile Customers Are More Engaged, Loyal
5© ath Power Consulting Corporation. All Rights Reserved.
Source: ath Power 2012 Mobile Banking Study™

6. Why Mobile Banking Adoption and Usage Matter
© ath Power Consulting Corporation. All Rights Reserved. 6
More Interaction /
More Engaged
Customer
Engaged
Customers are
More Loyal
Improving
Retention and
Share of Wallet
Retaining the Customer
• 3 in 4 mobile banking users surveyed indicate no quantifiable risk of switching their
accounts to another bank within the next 2 years
Engaging the Customer
• 72% of mobile banking customers ‘check-in’ at least once a week
Acquiring the Customer
• 7 in 10 mobile banking customers place high importance on mobile offering in bank choice
Opportunity to Modernize Relationship with Customer
• Provide value-added services
• Provide services outside of traditional banking
• Revenue potential

7. Gap in Mobile User Support Needs Addressing….
Or Customer Experience, Retention Will Suffer
7© ath Power Consulting Corporation. All Rights Reserved.
3%
0%
14%
6%
38%
7%
23%
14%
0%
25%
50%
Text interaction with a
banking agent
Video interaction with a
banking agent
A tutorial on mobile
banking features
Banking advice
Available Feature Would Like
Source: ath Power 2012 Mobile Banking Study™

8. 12%
16%
17%
19%
56%
61%
62%
Apply for a mortgage
Purchase a CD
Apply for an auto or other loan
Invest money in stocks or bonds
Conduct debit transactions at a store or
restaurant
Receive special offers, promotions,
coupons
Store and maintain rewards points
Percent Who Would
Use Feature
Drive Online and Mobile Adoption, Improve Customer
Experience By ‘Giving Them What They Want’
8© ath Power Consulting Corporation. All Rights Reserved.
Source: ath Power 2012 Mobile Banking Study™

9. 9© ath Power Consulting Corporation. All Rights Reserved.
Best Practice in Mobile:
Design ‘Customer Experience’ to Match the Device
Bigger Screen:
• Detailed information (e.g. PFM)
• Viewing statements / documents
• Graphical representation
Less Mobile than Smartphone:
• Less useful for ‘on-the-go’ activities
Potential for Small Business Banking:
• Less mobile device  less likely to be lost
• No alternate primary function (e.g. telephone)
Small Screen:
• Quick transactions (e.g. checking balances)
• Check what’s available for spending – like opening a wallet
Device Mobility:
• Location based services
• P2P Payments
• Point-of-sale transactions
‘Always on’:
• Alerts (fraud, stock trades, balance alerts, etc.)
Smartphone
Tablet

10. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 10
Optimizing ‘Customer Experience’ in Digital Channels
5 Key Drivers
• Device Portability
• Screen Real-Estate
• Tap-and-Swipe vs. Point-and-Click
• Device Security
• Reliability of Service
Potential Pitfalls
• Taking ‘online banking’ experience and shrinking it to mobile device
• Not taking into account how people use different devices and where they use
them
• Not ensuring consistency / meeting expectations across channels

11. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 11
Text Banking
Account Monitoring 
Aligning Digital Channel ‘Customer Experience’
with the Device: Example of North American Bank
Text Banking Mobile Browser
Account Monitoring  
Bill Payment 
Credit Card Payment 
Transfers - In-Bank 
ATM / Branch Locator 
Customer Service 
Text Banking Mobile Browser Mobile App
Account Monitoring   
Bill Payment  
Credit Card Payment  
Transfers - In-Bank  
ATM / Branch Locator  
Customer Service  
RDC 
P2P Payments 
Text Banking Mobile Browser Mobile App Tablet
Account Monitoring    
Bill Payment   
Credit Card Payment   
Transfers - In-Bank   
ATM / Branch Locator   
Customer Service   
RDC 
P2P Payments 
Visualization - Spending,
Cash Flow 
PFM Tools, Advice 
Text Banking Mobile Browser Mobile App Tablet Online
Account Monitoring     
Bill Payment    
Credit Card Payment    
Transfers - In-Bank    
ATM / Branch Locator    
Customer Service    
RDC 
P2P Payments 
Visualization - Spending,
Cash Flow 
PFM Tools, Advice  
Bill Payment - Setup 
Transfers - Out-of-Bank 
International Transfers 
Currency Orders 

12. © 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 12
Final Thoughts….
Looking Ahead
Laptop
SmartphoneTablet
Device Convergence
Touchscreen Laptops  ‘Tabletization’ of websites?
– Websites to be reengineered for Touchscreen devices:
‘Point-and-click’ to be replaced by ‘tap-and-swipe’
– Shift away from sequential navigation paradigms to
Tablet-like experience
– Feedback from Tablet apps. to websites
– Touchscreen laptops
– Smaller tablets
– Smartphones with bigger screens
Meanwhile: How to serve up the ‘right’ customer experience???

13. Michael J. McEvoy
Managing Director
+1.617.243.9500
mmcevoy@athpower.com
www.athpower.com
Engagement Banking:
Building Relationships Through
Online and Mobile