Post on 22-Nov-2014
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© Copyright 2014 Digital Leadership GmbH!Digital Leadership
Services & Consulting for
Digital Leadership
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Why are banks not performing as well as they could do?!Stefan F. Dieffenbacher"
© Copyright 2014 Digital Leadership GmbH!Digital Leadership
How much time did the average bank customer spend in 2013 …!
In the branch! In the digital channels!
Data source: hard data from 5 out of the top 20 banks in Europe 2013!
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What % of customers were going at all to a branch in 2013?!
Branch visitors! Digital Channels only!
59.6%!40.4%!
Data source: hard data from 5 out of the top 20 banks in Europe 2013!
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Channel usage intensity and frequency by 2015 in % *!
Desktop / browser Banking!
Mobile Banking!
Software (i.e. Quicken)!
Cash / non-cash ATMs!
Branches!*by usage frequency and usage intensity!
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!
The Digital Channels are already today #1.
The branch network is the alternative channel.
Really?!
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Sales (by numbers and volume) compared!
Branch! Digital Channels!
Data source: hard data from 5 out of the top 20 banks in Europe 2013!
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Final conclusion: banks don’t manage to make money
out of their online customers. !
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The User perspective!
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Coralie „Youngster distant functionalist“!
2!Top Prio: 5
Banking behaviour and attitude !Number of banks 1 Primary bank Fortis Banking likes No personal relationship, as long as the bank does a good job doesn't need
specialists currently, and prefers a distance with bank employees, likes simulations, access flexibility, general flexibility, simplicity
Banking dislikes No interest in banking and the financial world in general, banking must not take up too much time, doesn't want to be confused by her bank, modern atmosphere, too much formality and administration
Banking fears Little fear due to small exposure to banks Service frustrations Lack of efficiency, poor quality of advice, complicated language, marketing is to
obvious, daily service is too expensive
Literacy and devices
Computer Literacy Good computer Literacy and frequent use of other digital devices (digital natives) but finance plays no major part in life as of now, heavy Facebook user
Finance Literacy Low interest in finance and little Literacy Devices PC, iPhone 3, Android tablet
Proposition Matrix!Brand affinity Brand-agnostic Products u. Mngmt Savings, some current account, Mine pack, 1-2-ring Advice type Almost no use of PC banking due to limited product usage, contact via self
service in branch and face-to-face, but high affinity towards digital channels, Need specialist help, concise, no proactivity, trusts friends
Financial evolution Towards Nexus Retail, Nexus HiPo, risk: becoming a Retail Up and cross selling Cards, current accounts, travel insurance, PFM
Key data Age: 13 Location: Charleroi Language: French Education: Primary school Salary: €0.9k Assets: €6k Segment size 160 000
Lifestyle
Background: • upper middle class
Life goal: • rather vague: go to university
Life events: • graduation, education choice, marriage, birthdays
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Customers want to have it easy!
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Customers want to have it easy!
-668,61!04!Apr!
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And be proactively informed!
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They expect banks to help them understand their financial life!
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… and across their family / relevant entities!
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Customers look at their bank to help them understand how they spend!
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And be supported in their financial planning!
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Creating transparency & trust!
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Creating transparency & trust!
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Creating transparency & trust!
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+40% conversion rate for ABN AMRO.!!
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Eradicate barriers for your potential customers!
21"
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(1) Easy sign-up! (2) Photo authentication!
(3) Automatic login after sign-up!
(4) Customer does multibanking setup (! bank knows user’s
monthly income)!
(5) Bank grants !pre-approved credit!
The ideal customer sign-up process!
22"
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(4) Customer does multibanking setup (! bank knows user’s
monthly income)!
(1) Easy sign-up! (2) Photo authentication!
(3) Automatic login after sign-up!
(5) Bank grants !pre-approved credit!
The ideal customer sign-up process!
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The customer banks within 5 minutes!
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The external environment!
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Increasing proliferation of consumer decision making processes!
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Need to invest!
Online purchase!
Price comparison!
website!
Website!visit!
Print!campaign!
Youtube!Channel! Facebook!
Posts!
Family!discussion!
Community!review!
Friends!recommen
dation!
Branch visit!
€
€
€
€
€ Video!review!
€
€
€ Touch points where the bank can influence (potential) customers!
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Consumers directly interact with Merchants – the banks are not in the picture!!
26"
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MicroPayment, Pay as you go & Mobile Payment - all managed online.!
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• Premium SMS!• Operator billing!• App billing !• In-app payments!• NFC and mobile contactless payments !• NFC trials so far !• ‘Pay by mobile’ for digital goods !• PayPal as a mobile channel !• The single-click credit card checkout !• Square and Bump: physical mobile
payments!• Mobile money and banking!• Micro Web-payments!• Gaming coins!
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And even sending money is being threatened.!
32"
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The business lens.!
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3 months to launch a banner ! ROI maximized performance marketing!
35"
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Design goes beyond colours…!
36"
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Without data collection, no customer insights!
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Data from the CRM & core banking system!• Customer value!• Last branch visit!• Current residence!
Data from PFM!• Saving goals: user saves up for an own home!• Free finances: <€500 / month!• Rent: <€500 / month!
Unified Consumer Banking Data
Model!
• Last login, frequency of logins!• Which advertisements did the user click on?!• Which offers has the user been interested in?!ex
amples!
Data from analytics!
exam
ples!
exam
ples!
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… and no personalization & targeting!
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Drive marketing!
• Optimize On-&Offline Marketing Budget!• Targeted multichannel campaigning!
Drive product recommendations, !online marketing & sales!
• 3D realtime campaign management!
Drive advisory across the branch network!
• Advice customers holistically with consideration of their (saving) goals, lifestyle, expenses, overall financial situation and dreams!
Drive content & features!
• Drive content towards each sub-segment and potentially against real-time micro-segments!
Unified Consumer Banking Data
Model!
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Relaunch: align business & IT on the longer term! Excerpt of the Digital Leadership Strategy Framework!
39"
Stakeholders + other inputs!
Expected Benefits!
Overall Direction!
“The Product”!
Costs! Business Case!
Approach & Plan!
Stakeholder identification!!Personas!!Initial market & competitive analysis!!Other inputs to needs!
Departmental inputs!!Benefits identification!!Benefits breakdown & prioritization!!BI & Analytics review!!Initial opportunity identification!
Vision!!Goals!!Business objectives!!Project Motivation!
Key user tasks!!Cross-channel customer experience journeys!!Scope Landscape!!Roadmap!!!Content org model!Site org model!
Technical architecture! !Draft cost breakdown!!Initial project plan!!Organisational setup post launch!!Cost assumptions!
Business case!!Funding options!!Business Case presentation!
Initial draft plan till go-live!!Project plan strategy & concept phase!
1! 2! 3! 4! 5! 6! 7!
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Understanding the areas of value creation!
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Online-Banking The Online-Banking Strategy Framework!Prioritized benefits = strategic objectives
Benefits sought
Enable Online Data for branch advisory
Marketing
Enable Online-Data for Offline-Marketing
Unified data collection
Increased customer retention
Stickiness of the site
Chat & video
Online self-advisory tooling
Multibanking
Financial literacy
Financial planning
Loyalty program
Advisory
Financial vision
Bundling
Higher share of wallet
Realtime segmentation & targeting
Improved productinformation
Connection withloyalty program
User centered scenarios
On-site & conversion measures
Increased customer acquisition
Off-site marketing
Off-site measures
Content marketing
SEM & SEO
Affiliate marketing
Recommendation mar-keting
Ratings & Reviews
Analytics, goals &AB testing
Competitive comparison
Cross-channelMultibanking core
Ajusting channel mix
Adjusting for all screen sizes
Mobile push
Online- / Offlineconversion scenarios
Creating a large screen experience
Customer support
Cost reductions
Improved maintainability
IT
Higher scalability
Centralized IT development
Improved integrability
Less customer service incidents
Improved perception of support / help
Operations
Decreased contentmaintenance effort
Improved campaign management
Professional usability
Necessities / must do’s
Move away from aging platform
Legal requirements
Mobile integration
Highest Important Complementary
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Governance!
Security & complianceTechnologyIntegrationSystem Administration
Access & ChannelsRoles & responsibilitiesCollaboration & supportOrganization & structure
Brand & PerceptionMedia & ContentBehaviour & FunctionalitySite setup & structure
User needsCorporate goalsVisionObjectives, goals & KPIsFeedback mechanismsOutside of DC Governance
Digital Channels Governance Focus Areas
Direction
IT
PeopleCore c
om
ponents
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Governance focuses on the discrepancy to goals!
Security & complianceTechnologyIntegrationSystem Administration
Access & ChannelsRoles & responsibilitiesCollaboration & supportOrganization & structure
Brand & PerceptionMedia & ContentBehaviour & FunctionalitySite setup & structure
User needsCorporate goalsVisionObjectives, goals & KPIsFeedback mechanismsOutside of DC Governance
Digital Channels Governance Focus Areas
Direction
IT
PeopleCore c
om
ponents
© Copyright 2014 Digital Leadership GmbH!Digital Leadership
What have we done today?!
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We have considered about 25 challenges banks may have to
address!
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But which one is important?!
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A proposal for a basic prioritization framework!
Depths(of(product(/(offering(
Custom
er(nee
ds(/(bu
sine
ss(nee
d(
© Copyright 2014 Digital Leadership GmbH!Digital Leadership
1) Plotting of potential actions!
Custom
er(nee
ds(/(bu
sine
ss(nee
d(
Depths(of(product(/(offering(
Smartphone / photo !customer sign-up!
Next gen UX!Intelligent alerts!
PFM analysis of finances!Mobile payment!
Multibanking!
Financial planning!
(transparent) product reviews!
*exemplary plotting of potential actions!
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2) Understanding how these action items are likely to evolve in the marketplace!
Custom
er(nee
ds(/(bu
sine
ss(nee
d(
Depths(of(product(/(offering(
Smartphone / photo !customer sign-up!
Next gen UX!Intelligent alerts!
PFM analysis of finances!Mobile payment!
Multibanking!
Financial planning!
(transparent) product reviews!
*exemplary plotting of potential actions!
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3) Final step: Where should we focus on?!
Custom
er(nee
ds(/(bu
sine
ss(nee
d(
Depths(of(product(/(offering(
Smartphone / photo !customer sign-up!
Next gen UX!Intelligent alerts!
PFM analysis of finances!Mobile payment!
Multibanking!
Financial planning!
(transparent) product reviews!!
Continue investments!
Delete!!
Minor investments, unless important niche
clientele!!
!Invest heavily!
*exemplary plotting of potential actions!
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Services & Consulting for
Digital Leadership
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Q&A!
Stefan F. Dieffenbacher - Brussels, 21st of August 2014!
50"
© Copyright 2014 Digital Leadership GmbH!Digital Leadership
Services & Consulting for
Digital Leadership
© Copyright 2014 Digital Leadership GmbH!
Thank you!!
Stefan F. Dieffenbacher - Brussels, 21st of August 2014!
51"
© Copyright 2014 Digital Leadership GmbH!Digital Leadership
Contact details!
Stefan F. Dieffenbacher!Executive MBA, PMP, CPM, Scrum Master!Managing Director!
Digital Leadership GmbH!Landsberger Straße 217!D-80687 München!
+49 (0)176 / 638 020 11!+49 (0)89 / 748 600 32!sd@digital-leadership.net!www.digital-leadership.net!!
mobile:!office:!
e-mail:!Internet:!
Let me know how I can help!!