digital trends in the financial services industry
TRANSCRIPT
Digital Trends in the Financial Services
IndustryBy: KerryLynn Daly
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
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
“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
A New Position Banks need to look at themselves not as
financial service providers but rather as life enablers
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
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
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
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
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
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?
Appendix
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.
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.