CIS International Banking Conference Kiev, 5 June 2013

Paolo Barbesino Bank Austria Unicredit Group First VP, Internet & Mobile Banking CEE Retail

ISN’T THE BANKING EXPERIENCE TOO SERIOUS TO BE LEFT TO BANKERS?

CUSTOMER EXPERIENCE EVENTUALLY MADE IT TO THE BANKING RADAR

Source: Efma Journal No. 238 May/June 2013

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The subject of customer experience in retail banking has never been more important. Customer behaviours, expectations and needs are changing very fast and competitive pressure is growing – not only from inside the industry, but from non-traditional players such as retailers who are increasingly claiming a share of the customer’s wallet and who, many would argue, are better set up to deliver an enhanced experience. In this feature we hear from a number of bankers and industry experts who discuss the change in customer demands and strategies for a successful future.

SPECIAL REPORT: THE CUSTOMER EXPERIENCE

Meetingexpectations The subject of customer experience in retail banking has never been more important. Customer behaviours, expectations and needs are changing very fast and competitive pressure is growing – not only from inside the industry, but from non-traditional players … who are increasingly claiming a share of the customer’s wallet and who, many would argue, are better set up to deliver an enhanced experience.

“

”

THE FOCUS ON CUSTOMER EXPERIENCE IS EXPECTED TO BRING ABOUT A NEW GOLDEN AGE IN THE INDUSTRY

Source: CEE Retail elaborations based on McKinsey & Co: “In search of a sustainable model for retail banking”

SUSTAINABLE GROWTH &

PROFITABILITY

KEY COMPONENTS

-  Standardization

-  Product simplification

-  Process simplification

-  Platform consolidation

-  Channel de-siloing

-  MC/CRM integration

-  Big data

-  Social media foothold

-  Product & service innovation

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INSIGHTS FROM THE FIELD: HOW BANKING FITS IN THE LIVES OF OUR CUSTOMERS

4

BANKING IS NOT A DESIRABLE EXPERIENCE

MASS SERVICE

COMFORTABLE

UNCOMFORTABLE

PERSONALIZED SERVICE

BRANCH EXPERIENCE FALLS SHORT OF COMFORT AND PERSONALIZATION

CAR SHOOWROOMS

SPAS & BEAUTY SALONS

CINEMAS & THEATERS

BOWLING

BARS, CAFES, RESTAURANTS

INTERNET CAFES

SERVICE CENTERS

BOX OFFICES & RAILWAY BOOKING OFFICES

TRADING CENTERS PHARMACIES

HOSPITALS & DENTISTS

DRY CLEANING POST OFFICES

BANK BRANCHES

Source: Customer natural mapping exercise, Unicredit CEE, 2011

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IS THE BANKING EXPERIENCE ANY BETTER ON SCREENS?

7

THE ON-SCREEN BANKING EXPERIENCE REMAINS POOR

WITHOUT A SERIOUS UPGRADE OF THE ON-SCREEN FRANCHISE BANKS WON‘T SUCEEED IN THE NEW DISTRIBUTION MIX

Source: CEE Retail elaborations based on BCG, Oliver Wyman, Mckinsey & Co, CEE internal data

-  Branch

-  Contact center

-  MSF

-  ATM

-  PC

-  Smart phone

-  Tablet

ATTRACT ENGAGE ACQUIRE TRANSACT X/UP-SELL RETAIN

AS IS

lowest relevance

highest relevance

ON

-SC

RE

EN

P

ER

SO

NA

L

Distribution mix across personal & on-screen channels TO BE

ATTRACT ENGAGE ACQUIRE TRANSACT X/UP-SELL RETAIN

A HUGE DIFFERENCE REMAINS BETWEEN THE 65% OF AVERAGE DAILY

INTERNET USERS AND THE 25% OF ONLINE BANKING USERS

ON-SCREEN INTERACTIONS ARE SET TO GROW THEIR IMPORTANCE ALONG

THE WHOLE CUSTOMER JOURNEY FROM TRANSACTIONS TO SALES AND

RELATIONSHIP MANAGEMENT

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CAN BANKS SET STANDARDS IN THE ON-SCREEN EXPERIENCE?

INTERNET IS MORE THAN A BANKING CHANNEL

Expectations about what users

will find on banking websites

are set by the remaining 99%!

Users attention is a scarce

resource for banks!

less than !of online time is spent on banking websites!

1%

Source: The Nielsen Company, 2011

ON-SCREEN EXPERIENCE CANNOT LEAVE ANYTHING TO IMPROVISATION

UX on personal channels

•  Sketched on a canvas • Often unpredictable •  Flexible process to accommodate

virtually any development in the interaction

•  Personal soft skills to prevent the counterpart to interrupt the interaction

On-screen UX

•  Blue-printed from end-to-end • What cannot be predicted cannot be

acted •  Process needs to be designed in

advance to accommodate a small set of developments in the interaction

•  The counterpart is always one click away from interrupting the interaction

OK, I’ll get back to you as soon as I find a solution. I make sure it won’t take long.

DESIGNING THE EXPERIENCE IS MUCH MORE THAN PUTTING THINGS ON A SCREEN: IT’S MAKING AN ORGANIZATION WORK ACROSS BOUNDARIES

The Elements of User ExperienceA basic duality: The Web was originally conceived as a hypertextual information space;but the development of increasingly sophisticated front- and back-end technologies hasfostered its use as a remote software interface. This dual nature has led to much confusion,as user experience practitioners have attempted to adapt their terminology to cases beyondthe scope of its original application. The goal of this document is to define some of theseterms within their appropriate contexts, and to clarify the underlying relationships amongthese various elements.

Jesse James Garrettjjg@jjg.net

Visual Design: graphic treatment of interfaceelements (the "look" in "look-and-feel")

Information Architecture: structural designof the information space to facilitateintuitive access to content

Interaction Design: development ofapplication flows to facilitate user tasks,defining how the user interacts withsite functionality

Navigation Design: design of interfaceelements to facilitate the user's movementthrough the information architectureInformation Design: in the Tuftean sense:designing the presentation of informationto facilitate understanding

Functional Specifications: "feature set":detailed descriptions of functionality the sitemust include in order to meet user needs

User Needs: externally derived goalsfor the site; identified through user research,ethno/techno/psychographics, etc.Site Objectives: business, creative, or otherinternally derived goals for the site

Content Requirements: definition ofcontent elements required in the sitein order to meet user needs

Interface Design: as in traditional HCI:design of interface elements to facilitateuser interaction with functionalityInformation Design: in the Tuftean sense:designing the presentation of informationto facilitate understanding

Web as software interface Web as hypertext system

Visual Design: visual treatment of text,graphic page elements and navigationalcomponents

Concrete

Abstracttim

eConception

Completion

FunctionalSpecifications

ContentRequirements

InteractionDesign

InformationArchitecture

Visual Design

Information DesignInterface Design Navigation Design

Site ObjectivesUser Needs

User Needs: externally derived goalsfor the site; identified through user research,ethno/techno/psychographics, etc.Site Objectives: business, creative, or otherinternally derived goals for the site

This picture is incomplete: The model outlined here does not account for secondary considerations (such as those arising during technical or content development)that may influence decisions during user experience development. Also, this model does not describe a development process, nor does it define roles within auser experience development team. Rather, it seeks to define the key considerations that go into the development of user experience on the Web today.

task-oriented information-oriented

30 March 2000

© 2000 Jesse James Garrett http://www.jjg.net/ia/

DESIGNING THE ON-SCREEN BANKING EXPERIENCE SHOULD COVER BOTH EARNED (SOCIAL) AND OWNED MEDIA

THE INTERACTION BETWEEN EARNED AND OWNED MEDIA SHOULD BE ATTENTIVELY DESIGNED IF CUSTOMER SATISFACTION IS TO BE ATTAINED

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“WHEN I ENTER MY ONLINE BANKING I DON’T WANT JUST TO SEE MY ACCOUNT. I WANT TO ENTER MY BANK.”

RISING CUSTOMER EXPECTATIONS CALLS FOR A NEW ON-SCREEN BANKING EXPERIENCE

one-click social media

e-commerce

mobile

rich media

deal of the day

cloud

mash-up

Web 2.0 user experience

Source: Next-Generation Digital Financial Services, Forrester, February 2011

“Rising customer expectations and the growing importance of the Web and mobile as sales and service channels mean that financial services e-Business executives need to fundamentally improve the way they serve customers via digital channels.”

New user experience attributes for on-screen banking

ON-SCREEN BANKING EXPERIENCE SHOULD EVOLVE FROM MEETING DUMB TRANSACTIONAL NEEDS TO A FULLY INTELLIGENT TOUCHPOINT

NU

MB

ER O

F FU

NC

TIO

NA

LITI

ES

-

Customer support/relation management

Pre-sales/sales

Transactional banking

On-screen Banking - AS IS

USER EXPERIENCE +

On-screen Banking – TO BE

-

+

USERS, NOT BANKERS, SHOULD FIND USING THE SERVICE DESIRABLE

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how easy it is to interact with the service

DESIRABILITY �

USABILITY

PLEASURABILITY

UTILITY

how pleasurable the interaction is at the emotional level

what the service does, or offers to customer, at a functional level

•  manage exceptions, not be overwhelmed by them

•  get rid of functionalities that appeal to bankers but customers barely use, add functionalities that users miss

•  rearrange and prioritize functionalities according to user’s expectations

•  simplify overall navigation •  streamline processes and reduce clicks •  provide additional tools to help customers

manage their money •  create context for commercial CTAs •  always offer remote interaction with staff •  use natural language, avoid banking

jargon •  steal as much as you can from the best

on-screen experiences

THE ON-SCREEN BANKING EXPERIENCE SHOULD FINANCIALLY EMPOWER CUSTOMERS IN A 2.0 ENVIRONMENT

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GET RID OF FUNCTIONALITIES THAT APPEAL TO BANKERS BUT CUSTOMERS BARELY USE

ADD FUNCTIONALITIES THAT USERS MISS: CONVENIENCE

REDUCE CLICKS LEVERAGING SHORTCUTS

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USE NATURAL LANGUAGE, AVOID BANKING JARGON

In lieu of —> Instead of Opt —> Choose Proceding —> Previous Last day of preceding month —> Last day of previous month Fulfill your needs —> Meet your needs Purchase —> Buy Country of residence —> Where you live in You may be required to provide… —> We may ask you to provide…

We will assist you —> We will help you Submit your application —> Send your application The original investment will be returned —> We will return your original investment Remittance —> Payment Notify —> Tell us Prevailing exchange rate —> Exchange rate at the time Surrender value payable —> Amount you get back

Source: http://speakhuman.tumblr.com/

PROVIDE ADDITIONAL TOOLS TO HELP

CUSTOMERS MANAGE THEIR MONEY

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SIMPLIFY OVERALL NAVIGATION

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ADOPTING CONSISTENT INTERACTION PATTERNS…

AND HARMONIZING THEM

UNTIL EVERYTHING RUNS SMOOTHLY INCLUDING DETAILS

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THANK YOU!