looking to the future - financial services in the digital medium
DESCRIPTION
In this address to the annual Financial Services Council conference I presented the global state of play for digitisation - covering aviation, music and entertainment and financial services. I presented a view of what's in store for financial services for the future. This work continues to inform our digital strategy today.TRANSCRIPT
www.mercer.com.au
Looking to the futureHow best can a financial service beprovided in the digital medium?
Innovate 08
David AndersonOutsourcing Business Leader, Asia Pacific
7 August, 2008
1Mercer
Today’s agenda
The dim and dark ages: our recent past– Can you remember when…
The global state of play right now– Airlines– Music– Financial services
Facts about the end consumer
What’s in store for the future?– Empowered consumers engaged with their finances through the digital medium
The dim and dark agesHow time, technology and functionhave moved on quickly
3Mercer
Dial telephones
9 till 5 shopping hours (till midday on Saturday and closed Sunday!)
Travelling on anything with a paper ticket
Using a public pay phone
When PC’s were a novelty – and came without colour screens!
A world without the internet – no email, Google, yahoo, YouTube,facebook, MySpace or LinkedIn
A time without mobile devices or communication – no phone, iPod,SMS text, Blackberry or GPS
Can you remember…
4Mercer
Endowment policies and group ‘key man’ plans
Superannuation and insurance sold and serviced only through anagent
Deposit administration and the advent of unit-linked, or investment-linked super
Banking only through the branch - 10 till 3
Passbook savings accounts
Bankcard
Loans negotiated only with the bank manager
Shares purchased in person through a stock broker – T+5 settlement
The introduction of the ATM
And for financial services…
The global state of playAirlines, music and financialservices
6Mercer
The airline industryMass expansion and transformation
From the past…Three days and seven stops fromSYD to LHR
Paper tickets purchased over-the-counter at the airline
Check-in counters and queues
Random seat allocation
Frequent flyer points
Sole source carriers
Pre-recorded movies and news
Airline issued boarding passes
No in flight communication
To the present…22 hours and one stop from SYDto LHR
eTickets and online flightpurchases
Quick check self serve kiosks
Select your seat in real time
Online loyalty stores
OneWorld and Star Alliance
Foxtel digital live to air!
Online remote check-in
In air text, voice and internet
7Mercer
From the past…Vinyl records and 8-Track tapes
In store purchases
The vinyl then CD jukebox
Pre-packaged album content
Sorting through storage shelves
Records in milk crates, stackedcassettes and CD storage towers
Physical fulfilment and fixedlocation play
To the present…Cassettes, then CDs, then MP3
Anywhere, anytime online sales
iTunes library
Burn your own tracks on demand
Online store personalised profile
Thousands of songs, videos,pictures, TV shows, games andapplications in your pocket!
Mobile fulfilment and play
The music industryFrom the physical to the virtual
8Mercer
The financial services industryAggregation and integration
mint.com, wesabe.com,covestor.com
Get a complete picture of yourpersonal finances, including fees,all in one place
Credit cards, bank accounts,loans, investments, mutual funds
Highly personalised budgetingtools - set goals & track progress
Email and text alerts
Compare accounts to identifypotential savings
Online communities – askquestions and share advice
9Mercer
The financial services industryMobile banking is here
Check account balances, viewmini statements, transfer money,pay anyone, receive accountalerts
‘Bank in your pocket’ – any hourof the day and no need to visit abranch
Lower cost per transaction, reachlarger customer base
ANZ M-banking (Feb 2008):encrypted data allows fundtransfer via mobile
NAB text banking (Apr 2008):account balances via SMS
10Mercer
The financial services industryBuy and sell shares on your iPhone
Access live market news andmovements
View your holdings
View the latest stock prices
View company details, news,announcements and charts
View the daily market report
View your stock watch lists
View your outstanding, executedand cancelled orders
Buy and sell stocks in real time
View market depth
Facts about the end consumerWhat do they really want?
12Mercer
Always on the go, time poor
Juggling work, study and family life
Worried about budgeting, mortgages, petrol, price of groceries
Looking for the best deal with minimal effort
Trying to manage a multitude of accounts: mobile, home phone,broadband, credit cards, bank accounts, personal loans, home loan,bills
Concerned about having enough superannuation and insurance
Increasingly switched on to technology
Want a provider they can trust
Consumers are time poor
13Mercer
On demand self service
Consumers want a choice of how they access service (online, chat,email, phone, call back, SMS)
‘Try before you buy’ – online product comparisons
Sophisticated personalisation of content
Information that finds you – when you need it
Gmail – adverts and content based on personal profile
Consumers co-creating products and services to suit their needs
Consumers want service on call: at their fingertips; and in their pocket!
A desire for personal, immediate fulfilment
14Mercer
They now live in a wireless, digital reality
Internet, email, mobile phone
Social networks, video, audio streams, online calculators and projection tools,interactive webinars, blogs, Bluetooth, forums, RSS, wikis, wii
Wireless hyper-connectivity– Anywhere, anytime connectivity and access to information– Greater reach to customers– GPS– Video messaging– Hot spots and Bluetooth pairing
Accessibility, flexibility, versatility
Real-time on demand personal information
Smart phones as a new push/pull service platform
What’s in store for the future?Financial services in a wireless,digital world
16Mercer
Real time video calls and financial coaching
Online financial planning programs such as C2MF (see to my finances),integrated with BPAY, e-banking, mobile communication and straight throughprocessing
Electronic and voice activated disclosure documents
Your super, insurance, banking and stock details aggregated on one mobiledevice – and you can transact in real time
Funds transfer and investment switching on your TV - your financial recordson YourTV. Monitor your investments, switch options, transfer cash and seegraphical representations of past (or projected future) performance
Asking a friend or colleague ‘how much is your super worth right now?’
A nation of educated, empowered and engaged financial services consumers.World leaders in savings, again…
One-to-one service through a combination ofconverging digital technologiesImagine this…
Analogous to this…
www.mercer.com.au