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New Banking Distribu1on Models August 2013
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Banking on Digital: Innovation in Financial Services

Aug 11, 2014

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A 'Digital First' mindset is fundamental for financial services providers focused on significantly enhancing customer satisfaction, building customer loyalty and deepening share of wallet. In this joint Accenture and Backbase webinar, Joydeep Bhattacherya, Managing Director at Accenture and Jouk Pleiter, CEO & Co-Founder at Backbase will talk about how banks can adopt a Digital First strategy and will focus on how to create a Amazon-like post-login banking experience.
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Page 1: Banking on Digital: Innovation in Financial Services

New  Banking  Distribu1on  Models  August  2013  

Page 2: Banking on Digital: Innovation in Financial Services

Copyright © 2013 Accenture All rights reserved. 2

   

 

 Joydeep  (Joy)  Bha6acharya  

Digital  lead,  Financial  services  EALA  

Accenture  InteracCve  

[email protected]  

 

Intros    

Page 3: Banking on Digital: Innovation in Financial Services

Copyright © 2013 Accenture All rights reserved. 3

Agenda  

Macro  trends  affec1ng  banking  Industry  

Emerging  models  

Next  genera1on  concepts  

The  intelligent  mul1channel  bank  

The  digital  ecosystem  bank  

The  socially  engaging  bank  

Page 4: Banking on Digital: Innovation in Financial Services

Copyright  ©  2013  Accenture    All  rights  reserved.   4

Industry  challenges  are  moving  banks  toward  a  re-­‐inven1on…  

•  DifferenCaCng  services  in  an  increasingly  commodiCzed  market  •  Defending  payment  services  against  new,  emerging  compeCCon  •  Restoring  customer  trust  and  engagement  

•  Providing  a  tailored  and  relevant  customer  experience  •  Developing  mobile  channels  into  a  sales,  rather  than  service,  tool  •  Achieving  a  return  from  investment  in  social  media  •  Maintaining  margins  in  commodity  product  lines  

•  ArCculaCng  a  clear  digital  vision  across  web,  social  and  mobile  •  Leveraging  customer  data  efficiently  and  compeCCvely  •  Evolving  legacy  technology  to  compete  with  newer  firms  

Retailiza1on  

Customer  experience  

Technology  adop1on  

Creates  a  need  for  new  banking  models  

Challenges Transformation drivers

Page 5: Banking on Digital: Innovation in Financial Services

Copyright  ©  2013  Accenture    All  rights  reserved.   5

3  New  Priori1es  for  Transforma1on  …  

1 The  Intelligent  Mul1channel  Bank  Go  Analy1cal  Strategically  apply  analyCcs  to  more  effecCvely  meet  customers’  financial  needs  

3 The  Socially  Engaging  Bank  Go  Social  Leverage  social  media  interacCons  to  increase  customer  inCmacy  

2 The  Digital  Ecosystem  Bank  Go  Mobile  Become  the  centre  of  an  ecosystem  –  powered  by  mobile  –  selling  financial  and  non-­‐financial  services  

Page 6: Banking on Digital: Innovation in Financial Services

Copyright  ©  2013  Accenture    All  rights  reserved.   6

The  Intelligent  Mul1channel  Bank  Go  Analy1cal  

Advanced  mulCchannel  integraCon,  focusing  on  digital  

Pervasive  analyCcs  uClising  customer  data,  microsegmentaCon  and  predicCve  modeling  

Real  Cme  interacCons  management  for  increased  conversion  rates  

Product  offerings  and  pricing  schemes,  based  on  microsegments  and  opCmized  by  channel  

Remote  advisory  services  

Strategically  apply  analy1cs  to  more  effec1vely  meet  customers’  financial  needs  

Page 7: Banking on Digital: Innovation in Financial Services

Copyright  ©  2013  Accenture    All  rights  reserved.   7

Customer needs

Customer experience (based on interaction

with the bank)

Channels

Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7

Onboarding / Fulfillment Processes

Products

Improved Sales Funnel

Channels

Customer 1 desired experience

Customer 2 desired experience

Sequence of lower cost for the bank

Actions to re-channel customer experience (Values / Convenience / Pricing)

The  Intelligent  Mul1channel  Bank  Crea1ng  mul1channel  lean  experiences  

Page 8: Banking on Digital: Innovation in Financial Services

Copyright  ©  2013  Accenture    All  rights  reserved.   8

                 Intelligent  Bank  capabili1es  

A real-time data engine drives customer touch-points based on a wide range of data sources

BRANCH    

CALL  CENTER  

WEBSITE  

MOBILE  APP  /  SMS  

EMAIL  

DIRECT  MAIL  

BRANCH  

CALL  CENTER  

WEBSITE  

MOBILE  APP  /  SMS  

EMAIL  

DIRECT  MAIL  

Outbo

und  

Inbo

und  

Page 9: Banking on Digital: Innovation in Financial Services

Copyright  ©  2013  Accenture    All  rights  reserved.   9

The  Digital  Ecosystem  Bank  Go  Mobile  

Become  the  centre  of  an  ecosystem  –  powered  by  mobile  –  selling  financial  and  non-­‐financial  services  

Mobile  payments,  based  on  Near  Field  CommunicaCon  or  mobile  wallet,  enhance  bank  compeCCveness  and  customer  retenCon  

Mobile  markeCng,  loyalty  and  analyCcs  enrich  proposiCons  through  mobile  commerce    

Managing  alliances  and  partnerships  with  non-­‐banking  operators  

Powered  by  set  of  founda1onal  digital  capabili1es    

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Copyright  ©  2013  Accenture    All  rights  reserved.   10

Rise  of  Ecosystems  

Ecosystems  provide  banks  with  the  opportunity  to  enrich  their  customer  insight  and  therefore  personalize  proposi1ons  

“How  to  manage  my    money/  my  transac1ons/marketplace”  ecosystem  “Share  experience”  

ecosystem  

“Connect  me”  ecosystem  

“Now  discover”  stuff  ecosystem  

“Help  for  searching  for  stuff”  ecosystem  

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Copyright © 2013 Accenture All rights reserved. 11

What  could  the  Bank  Ecosystem  look  like?  

Customers

Merchants

Bank

• MulCchannel  pla`orm  aggregaCng  merchant’s  proposiCon    

• TransacCons-­‐based  analyCcs  

• Digital  markeCng  support    

•  Extend  Customer  reach  with  a  trusted  brand  •  Maximize  Customer  contact  capability  •  Access  to  digital  markeCng  through  customizable  loyalty  programs  

•  “One  stop  shop”  to  saCsfy  mulCple  Customer  needs  •  Selected  and  targeted  offering  driving  loyalty  •  Combines  online  and  offline  proposiCon,  improving  customer  experience  

•  AddiConal  channel  for  Customer  pull  

•  New  revenues  streams  from  non-­‐financial  products  

•  Allows  e-­‐sell  of  the  e-­‐commerce  infrastructure  

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Copyright  ©  2013  Accenture    All  rights  reserved.   12

Bank  of  America  integrates  3rd-­‐party  discounts  and  offers  into  online  banking  

§  Customized  discount  offers    embedded  in  users’  statements  

Bank  of  America’s  BankAmeriDeals  evaluates  customer  card  spending  and  offers  discounts  based  on  previous  purchases  made  in  commercial  stores    

§  Internet  banking  site  offers  personalized  offers  throughout  the  user  experience  

§  Deals  first  offered  to  employees  for  feedback  before  opening  the,  up  to  its  customer  base  

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Copyright  ©  2013  Accenture    All  rights  reserved.   13

Alternate  means  of  banking  at  Garan1  

Turkey’s  Garan1  Bank  and  mobile  phone  operator  Turkcell  have  teamed  up  with  MasterCard  to  launch  a  prepaid  SIM  card  called  Cep-­‐T  Para    

•  Can  be  used  at  any  store  accepCng  MasterCard  

•  Available  at  any  Turkcell  CommunicaCon  Center    

•  Load  money  to  the  card  using  any  GaranC  ATM  

•  Combines  mobile  and  banking  services  •  SIM-­‐based  secure  service  that  can  be  used  with  any  mobile  handset  device    

•  Turkcell  customers  access  payment  systems  offered  by  GaranC  Bank  without  being  a  direct  bank  customer  

With  the  launch  of  this  new  prepaid  card  service,  

Garan1  plans  to  gain  1.5  million  addi1onal  

unbanked  customers  within  the  next  three  years  

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Copyright  ©  2013  Accenture    All  rights  reserved.   14

The  Socially  Engaging  Bank  Go  Social  

Leverage  social  media  interac1ons  to  increase  customer  in1macy  

Social  media  monitoring  to  engage  customers,  miCgate  risks  and  promptly  react  to  issues  

Social  digital  marke1ng  to  define  the  best  content  for  individual  customer  profiles  and  a6ract  them  

Social  CRM  to  enrich  customer  data  with  social  media  informaCon,  facilitaCng  more  effecCve  proposiCons  

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Copyright  ©  2013  Accenture    All  rights  reserved.   15

The  Socially  Engaging  Bank  Go  Social  

Top  Areas  of  Interest     Ini1a1ves  

SOCIAL  CUSTOMER  SERVICE    

SOCIAL  BANKING    

P2P  TRANSACTIONS    

Customer  Service  on  Twi_er  

 

Online  bank  account  integra1on  on  Facebook  

P2P  Payments  via  digital  wallet  

Integrated  CRM  module  for  Twi_er  and  Facebook  

Virtual  Branch  on  Facebook      

Social  Banking  and  Payment  integra1on  

P2P  Payments  via  bank  account  integra1on  

Social  goal  seang  /  Crowdfunding  

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Copyright  ©  2013  Accenture    All  rights  reserved.   16

Social  media  transforma1on  journey  

Test,  learn  &  refine  

Build  communi1es  Create  audience  with  several  communiCes  aggregated  on  relevant  interests/  topics  

Engage  Users  Have  on  going  business  interacCons    

with  Social  Media  users  

Drive  business  Achieve  results  integraCng  Social  Media  as    an  engaging  layer  (“service  pla`orm”)  

Listen  Collect  relevant  feedback  to  feed  

other  key  components  and  tune  iniCaCves  

Brand  

Product  

Customers  

Ini1a1ves  

■  Understand  your  posiCon  (brand  &  products)  

■  Leverage  influencers  

■  Address  customer  needs  and  complaints  

■  Develop  new  offerings  

■  Collect  relevant  data  

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Copyright  ©  2013  Accenture    All  rights  reserved.   17

Social  media  transforma1on  journey  

Test,  learn  &  refine  

Build  communi1es  Create  audience  with  several  communiCes  aggregated  on  relevant  interests/  topics  

Engage  Users  Have  on  going  business  interacCons    

with  Social  Media  users  

Drive  business  Achieve  results  integraCng  Social  Media  as    an  engaging  layer  (“service  pla`orm”)  

■  by  products  

■  by  financial  need  

■  by  non  financial  need  

■  by  customer  segment    

■  Q  &  A  sessions  ■  “Offline”  caring  aier  online  intercepCon  

■  Customer  care  

■  Contests  (to  get  influencers)  

■  “Edutaining”  videos  ■  Entertaining  apps/  videogames  

■  Virtual  Branch  

■  Product  development  

■  IniCaCves  leveraging  virality    (e.g.  member  get  member)  

■  IniCaCves  leveraging  “social  informaCon”  

■  LocaCon  based  iniCaCves  

Listen  Collect  relevant  feedback  to  feed  

other  key  components  and  tune  iniCaCves  

■  Overall  posiConing  

■  Overall  senCment  about  exisCng  or  new  products  

■  CollecCon  of  feedback  about  iniCaCves  

■  IntercepCon    of  customer  complains  

■  Enrich  customer  profile  by  collecCng  customer  interests  

Brand  

Product  

Customers  

Ini1a1ves  

■  Understand  your  posiCon  (brand  &  products)  

■  Leverage  influencers  

■  Address  customer  needs  and  complaints  

■  Develop  new  offerings  

■  Collect  relevant  data  

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Copyright  ©  2013  Accenture    All  rights  reserved.   18

Infusing  social  media  concepts  into  banking  at  Fidor  Bank  

•  P2P  lending  through  crowdfunding  

•  Online  beang  pladorm  for  short-­‐term,  low-­‐value  stock  market  trading  

•  Saving  account  interest  rates  based  on  number  of  Likes  on  bank  Facebook  page  

•  Describing  itself  as  “banking  with  friends”,  Fidor  allows  customers  to  register  through  Facebook  Connect  

Fidor  Bank  AG,  a  German  100%  online  bank,  leverages  social  media  for  its  day-­‐by-­‐day  ac1vi1es.    

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Copyright  ©  2013  Accenture    All  rights  reserved.   19

Moven  using  social  media  reputa1on  in  credit  scoring  

•  CRED  score  used  to  make  decisions  about  services  and  pricing  

•  e.g.  improving  CRED  scores  earn  the  right  to  checking  account  with  overdrai  protecCons  

•  Mobile  phones  used  as  primary  payment  devices,  replacing  credit/debit  cards  and  cash  

•  Visual  personal  financial  management  tool  •  Introduced  financial  health  score,  CRED,  uClizing  the  social  media  reputaCon  of  the  customer.  

Moven  is  an  innova1ve  New  York-­‐based  start-­‐up.  All  transac1ons  are  conducted  online  or  through  mobile  devices.  Uses  social  media-­‐derived  scores  to  determine  pricing  and  access  to  products.  

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Copyright  ©  2013  Accenture    All  rights  reserved.   20

UBANK  -­‐  Crea1ng  a  stand-­‐alone  website  to  compare  users  spending  habits  in  Australia    

•  PeopleLikeU  is  a  stand  alone  website  which,  relying  on  a  dataset  made  by  historical  informaCon  from  NaConal  Australia  Bank,  allows  users  to  compare  spending  habits  in  a  precise  area  

•  This  website  enables  Australians  to  select  their  Once  selected  the  profile,  this  tool  provides  specific  staCsCcs  on  sample  expenditures,  giving  informaCon  on  different  categories  such  as  uCliCes,  shopping,  housing,  food  and  travel:  users  can  therefore  have  specific  informaCon  about  spending  level  in  a  precise  area,  for  example  knowing  how  much  does  a  similar  profile  spend  for  housing  in  the  same  postcode  zone  

UBank,  a  Na1onal  Australia  Bank  group  ins1tute,  has  developed  PeopleLikeU,  an  econographic  tool  which  allows  Australian  to  compare  finances  and  spending  habits  

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Next-­‐genera1on  online  banking  The  characteris1cs  of  a  future-­‐looking  OLB  experience  

Analy1cal  Using  all  of  the  informaCon  about  a  customer  to  their  advantage,  creaCng  a  deep  and  intuiCve  understanding  of  their  goals  

Social  Leveraging  the  power  of  a  customer’s  social  network  to  create  a  greater  personal  inCmacy  

Experience-­‐led  Focusing  on  fulfilling  a  customer’s  needs,  rather  than  selling  banking  products  

Ecosystem  A  network  of  partnerships,  both  financial  and  non-­‐financial,  seamlessly  integrate  a  customer’s  banking  acCviCes  with  the  rest  of  their  day-­‐to-­‐day  life  

Page 22: Banking on Digital: Innovation in Financial Services

What  might  a  next-­‐genera1on  experience  look  like?  Clients  will  demand  new  capabili1es  and  func1ons  

•  A  customer-­‐centric  user  experience  that  engages  on  an  emoConal  level  

•  A  consistent,  joined-­‐up  service  across  any  channel  or  device  

•  Mul1ple  channels  of  help  and  assistance  

Managing  Money  

Ecosystems  

Superior  Service  

•  Highly  relevant,  targeted  content  

•  Online  tools  that  help  a  customer  achieve  their  goals  

•  Predict  and  an1cipate  customer  demands  

•  Understand  a  customer’s  social  circumstances  and  connecCons,    

•  Build  a  wide  network  of  partnerships  

Atomised  

•  Make  func1ons  available  beyond  the  bank’s  web  site  

•  Take  advantage  of  emerging  consumer  technology