Shona McMahon

Future of banking & customer pathways

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Macro environment: Most banks will need to embark on fundamental transformation…McKinsey 2016

• Slow growth

• Low interest rates

• Digitisation

• New regulation

Macro economic Counter factors

• Productivity

• Viability – balance sheet

• Reorientation – business

model (customer + digital)

• Future is deep

connections with the

customer

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V U C A

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Fundamental business reorientation is recommended ….

McKinsey, 2016

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We are in the Age of the Customer…. …and customers are showing a strong preference to engage with us digitally

The upside is Cx and Value …. ….with human assistance and Best Bankers the critical ‘glue’ for transformation

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Speed Ease Transparency Vocal

Queues are a major cause of detraction

Digital Sales doubled in last 2 years (Finalta, AU/NZ)

70%of Kiwis

33% increase in mobile logins

Online txns have increased by 61% overall (last 5 years)

Westpac’s channel improvements are driven by the customer

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Westpac Self serve channels: Making banking a better experience with ease, convenience & speed

• Westpac One and mobile app

• ATM

• Phone banking

• Business Online

• Customer driven channel improvements (technical)

supported by our people and customer knowledge

• Confidence

• > 55 years customer group

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• Happy to use technology if shown and educated how to do

it.

• Prefer using a printed step by step guide over videos to

learn

• Security is a major concern when it comes to depositing

money at ATM

• Unhappy because they don’t understand how to use the

self serve channels and are asked to do so with little or no

knowledge.

• Staff awareness and confidence plays a huge part

• Education – some willing to embrace, but show me!

• I am not that generation. Someone to show me (more than

once!)

Self serve customer research (> 55 years speed date): Security is a top concern

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Banking Tech: Australia and New Zealand banks among most digitally innovative in the world, Forrester, 2016

VideoANZ, BNZ, CommBank and Westpac Aust. already offer video banking services at the branch, helping customers reach a remotely located expert.

Mobile money withdrawalWestpac and CommBank in Australia use mobile banking apps, which include Touch ID authentication, to let customers get money from an ATM using their mobile phone.

Personal Financial Management innovationKiwibank offers a digital money management service called ”heaps.Westpac has partnered with US startup Moven to launch CashNav

The History of Digital Personal

Assistants

1988

The History of Personal Assistants

1997

The History of Personal Assistants

1997

The History of

Digital Personal Assistants

2011

The History of

Digital Personal Assistants

2011

Search: Movie “Artificial Intelligence” + main character

The History of VA

1988 1997 2008 2011 2012 2014 2016

April, 2016

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RBS and NatWest

and SEB banks

deploying VA for AI

driven customer

service

Web based software voice detection: To respond to simpler customers queries, quicker

“Luvo” - can understand human diction at 90%

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Other Tech: Artificial intelligence allowing rapid future evolvement

AI – set of techniques / research, codes and platforms which

are coming to life as VA and chatbots:

- computer based learning to perform tasks normally

requiring human intelligence eg: visual perception,

speech recognition, decision-making and translation

between languages.

Digital Wallets – take your cell phone not your wallet

Virtual reality – in consumer space (not banking) – we’ve

used for L&D and prototyping branch layouts

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Video: Automated Teller Assist (ATA) at ATMs is low maturity globally. Aimed at increasing Cx

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P2P lending: Varying commentaries but most say low risk to banks

P2P Payments - making payments frictionless eg pay

$4.50 for coffee .

Acorns – wealth management app

P2P Lending – attacks on bank’s lending continue

but attracting customers to unknown brands means

survival hard.

• The rise of invisible AI• Netflix

• Google Maps

• Same experience just better

• All together now

• Aggregation of data with a conversational interface

• Real time language translation

• Let’s talk feelings

• Real time sentiment analysis via video and audio

• EI ??

• Emotional intelligence – having a true conversation

• Manipulating emotions for an outcome

What’s possible