Christian Hermanus

DIGITAL MODERNIZATION

CUSTOMER EXPERIENCES

EXAMPLE OF DIGITAL MODERNIZATION

KNOW YOUR CUSTOMER

BANK DIGITALIZATION

DON’T FORGET BASIC THING

1

2

a

b

a

c

INTEGRATED CUSTOMER EXPERIENCES b

AGENDA

DIGITAL BANKING IN INDONESIA 3

DIGITAL MODERNIZATION

CUSTOMER EXPERIENCES

EXAMPLE OF DIGITAL MODERNIZATION

KNOW YOUR CUSTOMER

BANK DIGITALIZATION

DON’T FORGET BASIC THING

1

2

a

b

a

c

INTEGRATED CUSTOMER EXPERIENCES b

AGENDA

DIGITAL BANKING IN INDONESIA 3

4

DIGITAL BANKING DOEST NOT EXIST ON WIKI

http://wikipedia

5

EXAMPLE OF DIGITALIZATION

http://www.engage.it/cms/wp-content/uploads/2014/02/tablet-reading.jpg

Newspaper and magazines, transform form paper to digital

6

EXAMPLE OF DIGITALIZATION

http://www.keynote.com/~/media/139885549E114E09B2874E9A915F82A2.jpg?la=en

Store, transform form brick & mortar to online store

7

BANK DIGITALIZATION

ATM, Phone Banking, Point Of Sales EDC,

Internet Banking and Mobile Banking

=

Digital Banking

?

and a focus on customer experience. 8

DIGITAL BANKING

A new concept in the area of electronic banking,

which aims to enrich standard online and mobile banking services

for example strategic analytics tools , social media interactions, by integrating digital technologies

, mobile technology

http://www.carolinemoeckel.com/defining-digital-banking/

Innovative payment solution

9

DRIVERS TO ADOPT DIGITAL BANK

DRIVER

Increase

Number of

Customer

Minimize

operational

cost

10

ASEAN DEMOGRAPHY

AGE Brunei Indonesia Malaysia Philippines Singapore Thailand TOTAL

0-14

102,287

66,445,726

8,661,126

36,284,194

746,018

11,922,487

124,161,838

15-24

73,123

43,367,249

5,082,397

20,456,964

990,980

10,161,210

80,131,922

25-54

198,235

107,276,879

12,390,221

39,837,245

2,800,352

31,770,717

194,273,650

55-64

32,123

20,035,162

2,285,575

6,244,757

556,730

7,383,813

36,538,160

>65

16,907

16,484,627

1,654,034

4,845,070

473,221

6,435,433

29,909,292

80

Million

40

Million

11

ASEAN & AUSTRALIA 2020

Digital Banking in Asia - McKinsey & Company

12

MINIMIZE OPERATION COST

BRANCH MOBILE

US$ 4.25

US$ 0.10

http://www.monitise.com/insights/2014/10/30/can-traditional-banks-compete-digital-centric-world/

Cost

Per

Transaction

4

13

1st PART TAKE AWAY

1 Bank need to make more profit

2 To make profit bank have to Increase number

of customer while at the same time minimize

operational cost.

3 Digital banking is not just another terminology

of electronic banking. It is a new concept that

covers wide area of banking technology.

Bank Digitalization will bring new customer

experiences

5 Our potential market segment is the age of 15

to 24 years old.

DIGITAL MODERNIZATION

CUSTOMER EXPERIENCES

EXAMPLE OF DIGITAL MODERNIZATION

KNOW YOUR CUSTOMER

BANK DIGITALIZATION

DON’T FORGET BASIC THING

1

2

a

b

a

c

INTEGRATED CUSTOMER EXPERIENCES b

AGENDA

DIGITAL BANKING IN INDONESIA 3

15

CUSTOMER EXPERIENCE

http://en.wikipedia.org/wiki/Customer_experience

KNOW OUR CUSTOMER

INTEGRATED

CUSTOMER

EXPERIENCES

DON’T FORGET BASIC THING

1 2 3

Principles for increasing customer experiences :

Customer experience is the sum of all experiences a

customer has with a supplier of goods or services,

over the duration of their relationship with that

supplier.

16

AGE Brunei Indonesia Malaysia Philippines Singapore Thailand TOTAL

0-14

102,287

66,445,726

8,661,126

36,284,194

746,018

11,922,487

124,161,838

15-24

73,123

43,367,249

5,082,397

20,456,964

990,980

10,161,210

80,131,922

25-54

198,235

107,276,879

12,390,221

39,837,245

2,800,352

31,770,717

194,273,650

55-64

32,123

20,035,162

2,285,575

6,244,757

556,730

7,383,813

36,538,160

>65

16,907

16,484,627

1,654,034

4,845,070

473,221

6,435,433

29,909,292

KNOW OUR CUSTOMER

http://preciesmark.nl/we-are-spoiled-generation-y-handles-crisis/

17

GEN Y CHARACTER

Tech Savvy Family

Orientated

Ambitious Team Players

Communicators

www.generationy.com/characteristics/

18 www.generationy.com/characteristics

GEN Y CHARACTER

Tech Savvy

• Surrounded by smart phones, laptops, tablets

and other gadgets

• Prefer to communicate more quickly and

effectively via email, social networks or text

messaging

• Attracted to hi-tech organisations

• Bank need to utilize all available technology to

serve the Gen Y.

• Banks need to create a consistent unified

experience across channels.

19 http://www.pewinternet.org/2015/01/09/social-media-update-2014/

Sosial Media Sites, 2012-2014

20 https://www.facebook.com/icicibank/

CASE STUDY - Facebook Bank Apps From Icici Bank

Simple

Convenient

Fast

21 http://www.socialsamosa.com/2013/10/social-media-campaign-review-pockets-by-icici-bank/

CASE STUDY - Facebook Bank Apps From Icici Bank

22 www.generationy.com/characteristics/

GEN Y CHARACTER

Prefer flexible working schedules and

a more rounded work/life balance.

Family Orientated

• Bank should present anywhere.

• Bank should operate 24x7

23 www.generationy.com/characteristics/

GEN Y CHARACTER

• Confident

• Demanding

• Their expectations are high

Ambitious

• Bank should be able to analyse their

customer behaviour.

• Bank should provide self-service

features on their product.

• Bank’s back office should be flexible

to configure and deploy new

products or reconfigure existing

products quickly.

24

CASE STUDY - FRANK Bank

http://www.frankbyocbc.com/index.html

http://www.theasianbanker.com/press-releases/ocbc-launches-banking-programme-for-youths-and-young-working-adults

Unique

Channels

Unique

Products

Unique

Branding

25

CASE STUDY - FRANK Unique Credit Card Design

http://www.frankbyocbc.com/products_creditcard.html

26 www.generationy.com/characteristics/

GEN Y CHARACTER Team

Players

• Bank should use the same media channel

with Gen Y for promotion, education, and

transaction.

• But on the others hand, bank should watch

any issue on the social media and be able

to respond effectively.

Communicators

• Working as a team.

• Trust the crowd.

• Actively search for information that they

need, ask for advice and opinions online

and through social networks.

• Love to share information

27 http://thefinancialbrand.com/18510/asb-bank-virtual-facebook-branch/

CASE STUDY - ASB Virtual Branch

Communication

channel to Customer

Get Customer

feedback

Risk mitigation for

Cyber bullying

28

INTEGRATED CUSTOMER EXPERIENCES

TOUCH POINT

A touch point is any place you touch your

customer and interact with customers.

http://touchpointmetrics.com/resources/guides/touchpoints/

29

INTEGRATED CUSTOMER EXPERIENCES

http://touchpointmetrics.com/resources/guides/touchpoints/

• Each of these touch points builds experiences to Bank’s

customer.

• One bad experience can cause your customer leave your bank

30

INTEGRATED CUSTOMER EXPERIENCES

Awareness

Knowledge

Consideration

Selection-trial

Satisfaction

Loyalty

Advocacy

• The 'prospect' becomes aware of the

Bank and its products or services.

• The 'prospect' gathers information regarding the

features and benefits of the bank’s products or

services.

• The prospect goes through a decision-making

process, during which a decision is made whether

or not to be a customer of your Bank.

• The prospect become a customer.

• The customer is satisfied that features and

benefits did not disappoint.

• The customer re-use your Bank services, or

expresses loyalty in some other way.

• The customer becomes an active

supporter and promoter of the bank and

its products or services.

Marketing for Stakeholders

31

INTEGRATED CUSTOMER EXPERIENCES

Awareness

Knowledge

Consideration

Selection-trial

Satisfaction

Loyalty

Advocacy

3 challenges on implementation

of digital financial services :

• Bank Information System.

• Network availability.

• Customer education and

protection

32

CASE STUDY – FRANK Customer Education

http://www.frankbyocbc.com/frank_tips.html

33

GAMIFICATION

https://www.techinasia.com/playmoolahs-growing-launches-whymoolah-teach-young-adults-finance/

is the concept of applying game mechanics and game design

techniques to engage and motivate people to achieve their goals.

34

INTEGRATED CUSTOMER EXPERIENCES

Loyalty follows the 80-20 rule:

• 80% of all transaction are

ordinary

• The remaining 20% include

task like handling a stolen

credit card or looking for

load.

Awareness

Knowledge

Consideration

Selection-trial

Satisfaction

Loyalty

Advocacy

Service center

is a very

important

touch point

35

DON’T FORGET BASIC THING : FEE

• Conceptual

Integrity

• Maintainability

• Reusability

• Availability

• Performance

• Reliability

• Security

• Interoperability

• Manageability

• Scalability

• Supportability

• Testability • Usability

Design

Qualities

Run-time

Qualities

System

Qualities

User

Qualities

DON’T FORGET BASIC THING : SYSTEM QUALITY

https://msdn.microsoft.com/en-us/library/ee658094.aspx

37

2nd PART TAKE AWAY

1

2

To understand your customer characteristic is

very important.

3

We should develop product that fit with our

customer charateristics

We should manage all of touch point to deliver

consistent exceptional customer experience.

DIGITAL MODERNIZATION

CUSTOMER EXPERIENCES

EXAMPLE OF DIGITAL MODERNIZATION

KNOW YOUR CUSTOMER

BANK DIGITALIZATION

DON’T FORGET BASIC THING

1

2

a

b

a

c

INTEGRATED CUSTOMER EXPERIENCES b

AGENDA

DIGITAL BANKING IN INDONESIA 3

39 http://www.bi.go.id/id/perbankan/keuanganinklusif/program/lkd/Contents/Default.aspx

DIGITAL BANKING IN INDONESIA

March,

2013

November,

2013

Branchless

Banking Pilot

Project

November,

2014

Branchless

Banking

regulation

• Bank Mandiri • Bank Rakyat Indonesia • Bank Sinar Harapan Bali • Bank Tabungan Pensiunan Nasional (BTPN) • Bank CIMB Niaga

40 https://www.btpnwow.com/portal/consumer-portal/login

BTPN

41 http://mandiriecash.co.id/

BANK MANDIRI

42 http://www.cimbniaga.com/repository/0588index-english.html

BANK NIAGA

43

SUMMARY

Profit

Cost

Loyal

Customer

Improve

Customer

Experience

Product

exceed

Customer

Expectation

Apply new

Technology

Digital

Banking

Know your

Customer

Integrated

Customer

Experence

Low cost &

Hi quality

44

Thank you

christian.hermanus@outlook.com See more at http://id.linkedin.com/in/christianhermanus.