digital trends in the financial services industry

14
Digital Trends in the Financial Services Industry By: KerryLynn Daly

Upload: kl-daly

Post on 21-Jan-2017

367 views

Category:

Marketing


2 download

TRANSCRIPT

Page 1: Digital Trends in the Financial Services Industry

Digital Trends in the Financial Services

IndustryBy: KerryLynn Daly

Page 2: Digital Trends in the Financial Services Industry

Consumer: What they Want vs. What they Receive Ubiquitous

Service Personalised Experience

Social & Informed BankingW

hat

cons

umer

s w

ants

Gap

Wha

t th

ey g

et

Restricted Service

Information from

Untrusted Source

Group Segmentation

Page 3: Digital Trends in the Financial Services Industry

Gap Leads to Digital Disruption

• Disruption – no longer a likelihood but a certainty

• Current State: Awareness without willingness

• Why disruption?: • Minimal

understanding of consumer behaviours

• Unmet customer needs

• Lack of innovation• A narrow vision of the

industry

Page 4: Digital Trends in the Financial Services Industry

“The railroads did not stop growing because the need for passenger and freight transportation declined [or] because that need was filled by others (cars, trucks, airplanes) but because it was not filled by the railroads themselves. They let others take customers away from them because they assumed themselves to be in the railroad business rather than in the transportation business...they were product oriented, instead of customer oriented.”

Theodore Levitt, Marketing Myopia, Harvard Business

Review, 1960

Lessons from the Past

Page 5: Digital Trends in the Financial Services Industry

A New Position Banks need to look at themselves not as

financial service providers but rather as life enablers

Page 6: Digital Trends in the Financial Services Industry

Trends Forcing Repositioning

Mobile & Online

Banking

Be Customer Oriented, not Product Oriented

Cyber-Security

Concerns

Cashless Payments

Digital Data Analysis

Social (Media) Banking

Digital Money

Management

Page 7: Digital Trends in the Financial Services Industry

Digital Optimisatio

n

Extension of Reach and Consumer

Relationship

Data Capture and

Analysis

Ubiquitous Service

Personalised

Experience

Social & Informed Banking

Top Customer Trends & Relevant Opportunities

Page 8: Digital Trends in the Financial Services Industry

Digital Optimisation of Services

What is the trend?• Anytime, anywhere access with

a personal touch • Demand for integrated branch

experience • Move towards cashless society• Digitisation of normal in brand

activities

What does it look like in practice?• Digital Cheque

Deposit• Money

management capabilities

• Video conferencing

• Wearables

Who is getting it right?

What is the major risk?

• Threat of cyber- security

Page 9: Digital Trends in the Financial Services Industry

Data Capture & AnalysisWhat is the trend?

• Customer Centric Model “very important”

• Use data to infer customer behaviour

• Target offerings for the ‘segment of one’

• Enable customer choice and agile product portfolios

What does it look like in practice?• Target offerings• Identification of

dissatisfied customers

• Personalised customer experience

Who is getting it right?

What is the major risk?

• Infringement on privacy laws

Page 10: Digital Trends in the Financial Services Industry

Extension of Reach & Relationship

What is the trend? • Harness traditional & non-

traditional data sources• Use of social to tailor customer

experience, spot trends and identify emerging issues

• Own the relationship with the customer and maintain trust

What does it look like in practice?• Social listening

and advocacy• MOOCs to inform

financial decisions

• Develop added lifestyle services

Who is getting it right?

What is the major risk?

• Brand reputation risks via social

Page 11: Digital Trends in the Financial Services Industry

Assess portfolio for Digitisation

Schedule; Develop API

Brand Campaigns;

Lifestyle Services; Further

Segmentation

Audit Existing Data; Segment

Customers; Build

Infrastructure for Future Collection

Customer Retention; Cost Savings; Data

Collection

Brand Loyalty; Ownership of

Customer Relationship;

Insights

Upsell Products; Retain

Customers

Data Analysis Relationship Reach

Digitial Optimisation

OpportunitiesWhat is the opportunity & how urgent is it?

How can you fulfill it?

What do you gain by fulfilling it?

Page 12: Digital Trends in the Financial Services Industry

Appendix

Page 13: Digital Trends in the Financial Services Industry

SourcesArd, Hayley. “Bite-Size Banking,” Stylus. 21 July 2014.

Berdak, Oliwia and Bill Doyle. “Digital Disruption Hits Retail Financial Services” Forrester. 16 July 2014.

British Telecommunications. “Transforming the Business of Retail Banking,” www.bt.com/gbfm. 2013.

Capgemini and Efma. “World Retail Banking Report 2015,” www.uk.capgemini.com/thought-leadership. 2015.

Competitive and markets Authority. “Retail Banking market Investigation,” www.gov.uk/cma-cases. 29 June 2015.

Corkey, Michael and Nathalie Popper. “Goldman Sachs Plans to Offer Consumer Loans Online, Adopting Start-Ups’

Tactics,” The New York Times. 15 Jun e 2015.

Deloitte. “2015 Banking Outlook,” http://www2.deloitte.com/financial-services.html. 2015.

Farah, Philip. “Future of Retail Banking.” Cisco. 2012.

Gordon, Fergus and Suresh Gunupure. Banking Strategies for the Future: Looking Ahead to 2020,” ATKearney. 2015.

Haldane, Marshall. “Card Security: Leading from the Front in the Digital Age,” Global Banking & Finance Review.

27 March 2015.

Holper, Luc. “The Next Generation of Payments: Can Technology support Banks’ needs to stay on top?” Global

Banking & Finance Review. 28 March 2015.

Page 14: Digital Trends in the Financial Services Industry

Sources ContinuedHoppermann, Jost. “Banking of the Future: How Banks will use Digital Capabilities to Remain Competitive,”

Forrester. 23 February 2015.

Horani, Mohamed. “Digitization in the Payment World,” Global Banking & Finance Review. 19 June 2015.

Kemp, Simon. “Digital, Social and Mobile in 2015: Executive Summary,” We are Social. 2015.

Levitt, , Theodore. “ Marketing Myopia,” Harvard Business Review,. 1960.

Mason, Jim. “Digital Disruption and the Battle to own the Customer Relationship,” Global Banking & Finance

Review. 2 June 2015.

PWC. “Retail Banking 2020: Evolution or Revolution.” www.pwc.com/banking. 2014.

Skan, Juliand, James Dickerson and Samad Masood. “The Future of Fintech and Banking: Digitally Disrupted or

Reimagined?” Accenture. . 2015.

Theodossiou, Spiros. “How far is the UK from Becoming a truly Cashless Society?” Global Banking & Finance

Review. 28 May 2015.

Wannemacher, Peter. “Predictions 2015: Digital Banking Teams Finally Get Serious about Innovation.”

Forrester. 6 November 2014.