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Predicting banking
This document discusses how banks are responding to pressures from increased regulation and disruptive technologies. It notes that banks initially fought regulation but are now being forced to adapt. In the long term, banks will likely focus on retail customers and differentiation. New technologies like mobile banking, peer-to-peer payments, and alternative currencies pose challenges while also providing opportunities. Some banks are beginning to experiment with social media and big data, but have yet to fully commit to deeper customer engagement and service. Overall banks must find ways to personalize and add value to services without requiring changes to legacy systems.
Predicting banking
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- 2. Background • The crash •Braying bankers, bonuses and clusterbombs • Too big to fail/bailed out • Public sentiment plummets • Regulatory response/ Project Merlin • (Slow) Divorce of retail & investment
- 3. The pressures • OccupyWall St/The 1% • Bank as more than a business (economy/politics) • Social customers • Compassionate capitalism • Drive to increased regulation • Disruptive tech
- 4. How will banksrespond? • Fight regulation vs. Adapt and develop • Short term - lower profits, job cuts (as I write this, Sky have announced Barclays Tech are cutting 400 jobs), cost cutting • The death of the branch • Long term - focus on retail and differentiation (market segmentation) • New ways of adding value or ‘just another utility’
- 5. What are bankslike? • Public but hidden (retail vs trading) • Short-termist - profit beats service • Slow • Silo’d • Locked down • Risk averse (with customers) • Challenged by regulatory and security implications of web • Legacy tech/systems
- 6. Where are theynow? • Making a nod towards social • Realise its not just marketing • Customer service on Twitter • But no deeper customer service commitment • Want to be engage/collaborate but still locked down • Entry point is middle mgmt - retail bank digital comms, PR and marketing • Where are the CEOs/COOs? • But....
- 7. Banks and social Amex OPEN Forum First Direct Labs
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- 9. The rise ofdisruptive tech
- 10. Personal finance management(PFM) see also: Meniga, Mint, Readyforzero...
- 11. Mobile (payments andbanking)
- 12. P2P see also: Zopa,RateSetter, Kiva...
- 13. Alternative currencies see also:Lewes Pound/Chiemgauer, Facebook credits...
- 14. Tablets see also: StandardChartered Breeze, Citibank for IPad, ...
- 15. Loyalty see also: AmexLinkLikeLove...
- 16. Rewarding influence see also:Movenbank CRED score...
- 17. Big data • “Banks spend millions trying to understand how customers interact across multiple products and touchpoints. Now we are looking at world where you move from transaction to interaction — which pages do they spend time on, what accounts do they have with other banks? Big data can help with customer sentiments and give access to the customer across all the touchpoints the bank has with them.” see also: predicting markets, minimizing risk...
- 18. The challenge • Whattools and systems can we create to, personalize, transform and add value to banking services without requiring banks to alter their core systems or get IT involved
- 19. Areas of opportunity •Personal banking • Business banking • Payments • Investment (?) • Innovation support (why, how, what) • Engagement support • Internal comms • Others?