engagement banking strategy by michael degnan
DESCRIPTION
Webinar Jan. 27, 2011: The Engagement Banking Strategy - presentation by Michael Degnan. Engagement Banking Lead at SapientNitro.TRANSCRIPT
Engagement Banking Strategy Backbase Webinar Series
January 27, 2010
What is Engagement Banking?
For further reading, download our white paper:The Future of Banking is Engagement Banking
© 2011 SapientNitro
Today…
Thanks:
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Customer Intimacy
Scaleand
EfficientOperations
© 2011 SapientNitro
Customer Intimacy
Scaleand
EfficientOperations
Technology
© 2011 SapientNitro
Customer Intimacy
Scaleand
EfficientOperations
Engagement BankingTechnologies
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Engagement Banking
is a new marketing, sales and service model that
deploys Technology to achieve both
Customer Intimacy and Scale
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1. Your ability to collect customer data, turn that data into insight and effectively disseminate that insight
2. The appropriate channels that align with a customer’s convenient behavioral patterns
3. A strong user experience design
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Banking
Technology Marketing
Customer Experience
Business Environment
Consumer Behavior
EB
Engagement Banking Market Framework
How are customers behaving today?
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Customers want Digital
Most consumers now touch their bank digitally, and outside the branch network
Internet Banking 36%
ATM 15%
Mobile 3%
Digital54%
Source: American Banker Association, Preferred banking method survey, September 2010
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“Digital” will increasingly mean “mobile”
Source: American Banker, Javelin Research, October 2009
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Customers rarely set foot into a branch.
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Cash from the ATM… the one thing they can’t do digitally
But only for a few more months.
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NFC
So, what do consumers want?
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Consumers want…
Personalized information and content
To connect with the brands they custom, and be valued for it
To have access to their financial information and banking services, 24/7, across multiple channels
To have a problem resolved quickly and for the first time
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The Four Pillars of Engagement Banking
1. Next Generation Online Banking Experience
2. Multi-channel Client Experience
3. Digital Customer Acquisition
4. Digital Community Development
60% of checking accounts are likely to become unprofitable.The Boston Consulting Group, 2010
Profits are generated in three ways
1. Revenue expansion
2. Increasing asset productivity
3. Cost reduction
Engagement Banking powers all three levers
What an Engagement Bank
Looks Like
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Traditional banks are organized around silos
Enterprise Services
Corporate Finance Treasury Payments
Operations Fraud / AML Technology
Product
Customer Management
Onboarding Marketing
Strategy Analytics
Retail / Branch Call Center
Alternative
ATM Online Mobile
Services
Origination Pricing
Strategy Compliance, etc.
Instruments
Deposits / Accounts Lending
Cards Wealth, etc.
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Engagement Banks are channel-independent
Channels are agnostic, and supported by shared, customer-focused business services
Customer context is delivered throughout the organization
Enterprise Services
Product
Business Model Services
Customer ContextCustomer Context
Branding / Marketing
Sales Onboarding Relationship Management / Servicing Transitioning
Channels
Retail / Branch Website Mobile ATM / Kiosk Call Center
InstrumentsServices
Customers are already channel-independent
Image: peopleseconomics.com
The customer’s journey defines the experience
Engagement Banking is about reorganizing traditional banking activities to engage and empower customers through a compelling sales, product or service experience
Re-evaluationEngagementInitiationDiscovery
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Re-evaluationEngagementInitiationDiscovery
Triggers
Marketing and Brand.
Moments of clarity and inspiration of a financial need.
Investigation
Pre-sales.
Initial research into the benefits of a banking brand, products and services… and what the peer network says.
Image: http://jonathanbaldwin.blogspot.com
Re-evaluationEngagementInitiationDiscovery
Trial
Sales activities
The customer assesses how a product or brand’s abilities meet their individual needs.
Onboarding
The traditional onboarding process.
PurchaseDecision
Re-evaluationEngagementInitiationDiscovery
Manage
Gain clarity and control, and make transactions to implement change.
Understand
Make sense of what I’m doing and a plan for what to do next.
View
View your financial life. Assemble a personal balance sheet to develop a complete picture.
Evaluate
Continually evaluate how my financial solutions help with my continually changing life.
Re-evaluationEngagementInitiationDiscovery
Repositioning
Identifying products that are better alternatives than what’s currently implemented
Relationship Closure
Activities to close or transfer a financial relationship, including account closure and feedback.
Standard Bank Products, Services &
Functions
Enterprise Services
Product
InstrumentsServices
Engagement Banking Business Framework
© 2011 SapientNitro
Engagement Bank
Customer-centricServices & Functions
Business Model Services
Customer Context
Branding / Marketing Sales Onboarding Relationship Management / Servicing Transitioning
Channels
Retail / Branch Website Mobile ATM / Kiosk Call Center
Customer Experience Framework
Re-evaluationEngagementInitiationDiscovery
How to Implement Engagement Banking
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The Four Pillars of Engagement Banking
1. Next Generation Online Banking Experience
2. Multi-channel Client Experience
3. Digital Customer Acquisition
4. Digital Community Development
© 2011 SapientNitro
Applying professional-grade data visualization techniques….
Next Generation Online Banking Experience
… can provide financial context to consumers.
© 2011 SapientNitroImage: Mint.com
PFM is really about bringing business-class reporting and
analysis down the food chain to consumers.
Next Generation Online Banking Experience
Image: Mint.com
© 2011 SapientNitro
Strong User Experience Design across every channel A design that focuses on the user experience means a different
approach to delivering financial information.
Personalization is a major trend in modern design
The most relevant and convenient information, to that person, is allowed to be surfaced and made easily accessible.
Most desired information readily available
“What’s my account balance?”
Visualization to provide context at-a-glance.“How am I doing?”
Most recent first, for fast updates…
“Did the check clear?”
Strong User Experience Design…
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Source: IDEO
… across every channel
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Multichannel Client Experience
SapientNitro Engagement Banking Digital Whitepaperhttp://engagementbanking.sapient.com
© 2011 SapientNitro
Digital Customer Acquisition
Real-time campaign management and adjustments, based on active tracking and monitoring of consumer behaviours
Data-driven Product Development
Data Intelligence in Customer Service and Support
Digital Community Development
Image Source: It’s a Wonderful Life, 1946
© 2011 SapientNitro Image Source: jasocal.org
Digital Community through Social Networking
Image Source: O’Reilly
Customer Intimacy at Scale
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Summary
Engagement Banking Market Framework
© 2011 SapientNitro
Banking
Technology Marketing
Customer Experience
Business Environment
Consumer Behavior
EB
Standard Bank Products, Services &
Functions
Enterprise Services
Product
InstrumentsServices
Engagement Banking Business Framework
© 2011 SapientNitro
Engagement Bank
Customer-centricServices & Functions
Business Model Services
Customer Context
Branding / Marketing Sales Onboarding Relationship Management / Servicing Transitioning
Channels
Retail / Branch Website Mobile ATM / Kiosk Call Center
Customer Experience Framework
Re-evaluationEngagementInitiationDiscovery
© 2011 SapientNitro
The Four Pillars of Engagement Banking
1. Next Generation Online Banking Experience
2. Multi-channel Client Experience
3. Digital Customer Acquisition
4. Digital Community Development
About SapientNitro
2009 REVENUE OF US$639MEND-TO-END SERVICE OFFERING, WITH COLLABORATIVE AND AGILE APPROACH
2009 REVENUE OF US$639MEND-TO-END SERVICE OFFERING, WITH COLLABORATIVE AND AGILE APPROACH
FOUNDED IN 1990, PUBLICLY TRADED SINCE 1996 (NASDAQ: SAPE)
HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN INDIA
35 OFFICES WORLDWIDE
FOUNDED IN 1990, PUBLICLY TRADED SINCE 1996 (NASDAQ: SAPE)
HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN INDIA
35 OFFICES WORLDWIDE
UNIQUELARGEST INDEPENDENT INTERACTIVE AGENCY IN THE WORLD, withINDUSTRY LEADING STRATEGY & TECHNOLOGY CONULTING
UNIQUELARGEST INDEPENDENT INTERACTIVE AGENCY IN THE WORLD, withINDUSTRY LEADING STRATEGY & TECHNOLOGY CONULTING
© 2011 SapientNitro
INSIGHTSExpertise in research, analytics, brand & user experience, wealth management, and global markets
IDEASIdeas born of insights. Our creative department consists of designers, writers, IAs, strategists, account managers and technologists
REALIZATIONPeople that can execute on ideas from a customer experience, operational and technical perspective supported by world class program management and collaborative approach
S
We are
Thank You
Michael DegnanEngagement Banking Lead
SapientNitro Financial Services Center of Excellence
[email protected] | @mdegnan
http://engagementbanking.sapient.com
#engagementbanking