20110228 the e bank value proposition_vargas


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The Community FI is at NO disadvantage to the large, national box banks with their online presence. Quite the opposite actually; they have the ability to leverage strategic technology vendors to offer a combination of technology and human attention to their needs that box banks are unable to match.

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20110228 the e bank value proposition_vargas

  1. 1. Building the eBank Value Proposition TonyTorero.com Consulting, LLC Contact: (913) 538-1572 February 2011
  2. 2. Building the eBank Value Proposition Agenda 1. 2. 3. 4. Objective Definition Facts and Figures The eBank Value Proposition - Scope The 7 eBank Commandments Explained 5. Tools of Execution 6. Summary & Game Plan 2
  3. 3. Objective Definition • The Community FI is at NO disadvantage to the large, national box banks with their online presence. Quite the opposite actually; they have the ability to leverage strategic technology vendors to offer a combination of technology and human attention to their needs that box banks are unable to match. • What they often lack are the resources to leverage this advantage to the fullest. This is the gap we will fill; allowing them to be bankers while we also allow them to maximize the investment in their online presence and make use of a team that will offer a unique skill set that most Community FI’s can’t afford to keep on payroll. 3
  4. 4. Facts and Figures – Part I • • • • • • Banks see online banking as a value-added customer service, and are taking great pains to create user experiences that reinforce customer trust and a recognition of what every online customer wants: convenience and speed at low cost. ¹ While about 95 million U.S. households use the Internet, 72.5 million of those households participate in online banking, with 36.4 million using online bill pay. Those numbers represent a 51 percent increase in Internet usage per household since 2000, and an even larger increase of 84 percent in online banking and 78 percent in online bill pay. One area of weakness could be among Generation Y, consumers born between the late-1970s and the late 1990s, who are adopting new technology at a high pace, but are more likely to pay through a biller direct service. Online banking and bill payment are no longer "early adopter" technologies, and often lead to increased customer loyalty. While consumers often hear about online options through word of mouth, bank branches have the best opportunity to educate customers on the services they provide. Online banking and mobile payments are growing at a faster pace than the Internet. ² ¹ http://www.forbes.com/bow/b2c/category.jhtml?id=3 ² http://www.banktech.com/channels/showArticle.jhtml?articleID=225200064 4
  5. 5. Facts and Figures – Part II • • 72% of North American bank technology executives expect their budgets to stay the same or decrease in 2010, according to a recent Aite Group report. As a result, banks seeking to improve efficiencies, reduce costs and free up capital are increasingly turning to outsourcing, according to reports. Thanks to a combination of demographic trends, technology capabilities and uncertainty in the banking competitive arena, personal financial management (PFM) tools -- online resources geared toward helping consumers and small businesses manage their finances -- really took off in 2009 and are likely to present an even greater opportunity (or threat) to banks in 2010. PFM looks to be an ideal way for banks to improve customer experience and loyalty and to leverage their online banking platforms. Banks are in a prime position to help customers take more control over their finances. But PFM's growing popularity also raises the specter of disintermediation. The leading PFM players, including Mint (acquired recently by Intuit), Geezeo and Yodlee, are simultaneously potential partners and competitors to banks. ¹ ¹ http://www.banktech.com/managementstrategies/showArticle.jhtml;jsessionid=GF45KRBAEQHCZQE1GHPSKHWATMY32JVN?articleID=2220 02892&pgno=2 5
  6. 6. The eBank Value Proposition - Scope • Just as the community FI value proposition consists of offering an unparalleled combination of human and technological contact & service, the online channels can offer the same marriage of old (traditional) and new. • In other words, we will offer our customers a strategic framework that leverages the bank’s investment in their Technological Infrastructure as well as opening up new web & Marketing opportunities by applying a series of 7 eBanking commandments that will: – Put eBanking controls firmly into the customer’s hands. – Empower customers to communicate with their bank when, where & how they want. – Provide simple, easy to use tools that let customers control their money, their finances and how they communicate economically with the world. 6
  7. 7. The 7 eBank Commandments Explained 1.Listen to me & Respond accordingly (Make me feel important) Just like a branch customer, an eBanker wants to feel important. They like to influence their eBanking experience. They want the eBank to listen to their concerns and suggestions and respond accordingly. They compare the bank’s Web experience to every non-bank experience and transfer those expectations from company to company. The serious eBanker seeks a partner that appreciates new ideas from a wide range of sources. Therefore, in designing the eBank experience for our clients, we must compete against a wide range of user expectations in terms of ease of use and functionality and pursue continuing research on user preferences. 7
  8. 8. The 7 eBank Commandments Explained 2.Personal Touch eBankers do not see the Web experience as a separate service or a replacement for the branch necessarily, but as an extension of the overall bank experience. They perceive relationship banking as an integrated experience that works seamlessly, regardless of how they choose to interact with the bank. They see the Web as an integral part of all their personal relationships and a way to enrich those relationships. They see no real distinction between visiting a branch and researching or interacting with a bank online. Therefore, we need to intertwine the Web experience for our customers into all the aspects of personal relationship banking rather than treat it as a distinct channel. 8
  9. 9. The 7 eBank Commandments Explained 3.Seamless Assistance with my Banking Needs eBankers want to be able to conduct a full range of transactions online, from opening accounts to chatting with a customer support person. They are likely to seize upon a range of imbedded functionality that will put them in direct, real-time contact with eBank support staff as well as their personal banker. These users see email, texting or instant messaging in the same light and view them as largely interchangeable. The eBanker now expects their online tools to give them the power to manage their finances, budget for current & future needs, financially forecast and give them the option of taking as firm control of their finances as they wish, whether they’re on their computer or mobile device. 9
  10. 10. The 7 eBank Commandments Explained 4.Banking my way (Let me choose how to use/customize web tools) The more advanced eBankers want to be able to customize their Web experience. Every eBanker is concerned about security but this group is even more aware of the paramount importance of proper online security. They even prefer to be able to set their own security levels based on their personal risk assessment to meet their unique needs. They want to add features at their discretion and add or delete optional services on demand. Consumers want choices and the ability to customize the Web experience. 10
  11. 11. The 7 eBank Commandments Explained 5.Tools to better manage my money (PFM Tools) The advent of online Personal Financial Management (PFM) services has put a dent into Quicken’s stronghold within the PFM market. Many more users are seeking a simple set of tools to better manage their personal finances. A basic, integrated PFM capability has become increasingly important with the ability to set up and track budgets and expenditures. In these difficult economic times, users are seeking an easy way to better manage their finances and build net worth. eBankers are seeking impartial and helpful financial advice from a reliable source. Therefore, we need to encourage our customer to leverage their trusted relationship with the bank, which has historically occurred as a result of our branch presence. 11
  12. 12. The 7 eBank Commandments Explained 6.Social Networking For many eBankers, social media sites, such as Facebook, have become an integral component of their day to day lives. They develop or nurture relationships that impact their business decisions, as well as their friendships and professional ties within these social spheres. Increasingly, these sites have become an influential source of impartial information, advice, and guidance. Business Reputations & Brand Equity are made or broken with feedback from customers. Referrals are generated between network members based on past experiences. This form of word of mouth marketing is always the best, and the least expensive, marketing. Therefore, we need to help our customers understand the vital importance of tapping into these networks, monitoring this feedback and encouraging positive “viral’ marketing where possible. Simply put, when it comes to social networking, forward thinking FI’s should strongly consider testing this blue ocean while its still blue because: – It costs little if any to introduce your business within this sphere. – If you don’t protect your brand on the social networking airwaves, somebody else is liable to do it for you! 12
  13. 13. The 7 eBank Commandments Explained 7.Viral Marketing A true community bank has a unique ability to differentiate itself in the local market by adding a personal touch that a large, box bank cannot replicate. In that sense, the driving philosophy behind eBanking is really no different than the branding and positioning we apply to the FI’s overall image. Some examples of Viral Marketing on the web may include: offering a humorous twist to financial advice via a blog or micro-site or highlight local events in a unique and distinctive manner via social networking sites. Since we know each eBanker when they log-in, we have a unique ability to deliver a level of personal response, on a mass basis, that is unprecedented in banking. Our strategy should look to highlight opportunities to add a personal or local touch wherever possible. 13
  14. 14. Tools of Execution • It is Crucial to note that the 7 eBank Commandments represent a framework and strategy. The actual tactics employed to address the needs of each bank under the holding company will vary depending upon their individual eBank strategy that is developed & agreed upon. • The tools employed to execute the tactics that will be developed with customers will include, among others: – – – – – – – eBank Site & Platform Strategic Planning, Design & Implementation Online Marketing Efficiency & Profitability Reporting & Analysis Social Media Integration with Web Marketing Strategy SEO & SEM Consulting and Strategy Sophisticated Analytics Website Usability Studies Concentrated eMail Marketing (e.g. Drip & Custom Campaigns) 14
  15. 15. Summary & Game Plan – Part I • Part web development, part eMarketing, part product and services discovery & optimization… we will work tirelessly with a hands on, exhaustive approach to help the bank’s create a unique customer experience & realize the full technological potential that is available to them. • We will develop a standardized, yet dynamic series of lists of tactics our team will offer under each strategic area we will offer our banks though one size will most definitely not fit all! • We will review each bank’s web marketing presence, analytical data as well as the overarching online banking suite to best gauge how the 7 eBank commandments can best help each institution reach their communities. 15
  16. 16. Summary & Game Plan – Part II • Advanced Mobile & Tablet devices will usher in a blue ocean opportunity centering around mobile payments. We will discover the best opportunities for partnership, resonance & ubiquity. • Social Media doesn’t end with Facebook. We will leverage the infinite tools within the SM Universe to communicate & engage customers in new ways. • Determine what emerging eBanking technology areas we lack or underutilize today that could be worth making a strategic focus for growth & penetration? • How do we get our internal customer/employee base engaged and euphoric in evangelizing our message and excited about our presence & product suite? 16
  17. 17. Conclusion • Thank you for the opportunity to present this framework. I believe we could use it to accomplish something special! “The Web as I envisaged it, we have not seen it yet. The future is still so much bigger than the past.” “You affect the world by what you browse.” - Tim Berners-Lee: Creator of the World Wide Web 17