VIRTUAL FINANCIAL ADVISORS AT SURUGA BANKebusiness.mit.edu/sponsors/common/2006-AnnualConf/... ·...
Transcript of VIRTUAL FINANCIAL ADVISORS AT SURUGA BANKebusiness.mit.edu/sponsors/common/2006-AnnualConf/... ·...
MIT Center for eBusiness Annual Sponsors’Conference and CIO Symposium
June 20 – 21, 2006
Glen L. Urban, MITYoshio Tokoro and Tetsuya Yuge, Suruga Bank
VIRTUAL FINANCIAL ADVISORS AT SURUGA BANK
AGENDA
• Strategic Perspective -- USA– Growth of Customer Power– Applications – GM, Credit Unions
• Will It Work In Japan?• Suruga Loan Advisor Research
– Advisor Design– Demonstration
• Future Research
Customer Advocacy
Relationship Marketing
TQM Customer Satisfaction
Figure 1 – The Advocacy Pyramid
APPLICATIONS -- ADVOCACY TOOLS
• MIT Research• Autos – GM• Finance -- Credit Union
CREDIT UNION RESULTS• Online advice use by 39% of members• Conversion rates as high as 54%• Mortgage volume up 60% • Auto Loans up 20%• Satisfaction up – 95% recommend to friend• Loan Officer productivity – 2X• Training telemarketing/frontline staff /Direct
Suruga/MIT Research Project
• Best Practice Study• Loan Advisor• Prototype • Future
Best Practice
• Purpose – Suruga Very Good Site, But Opportunities for Improvement
• Role of Customer Advocacy in Progress• Expert Ratings• 31 Banks in 3 Regions – 47 Elements
DIMENSIONS
• 9 dimensions: – Navigation– Design– Security and Privacy– Customer Service – Transparency and Open– Comprehensive and Full– Advice– Value– Consumer Oriented Philosophy
Best of Best vs. Best in Japan and Surug
2.0
3.0
4.0
5.01. Navigation
2. Design
3. Security and Privacy
4. Customer Service
5. Transperancy and Open6. Complehensive and Full
7. Advice
8. Value
9. Customer Oriented Philosophy
JPBoBSRG
Lead
Catch-up
Catch-up
Catch-up and Big Lead
Lead
Big Catch-up
Catch-up
Smal Catch-up
Comparison of Suruga, Best Banks in Japan, and World Best of Best (BOB) Banks
OPPORTUNITY
• Places for Further Progress– Transparency and Openness– Design– Navigation– Comprehensive and Full Information– Advice
• So this guides Suruga Bank/MIT Project
TRUSTED ADVISOR
• Virtual Branch• Personal Trusted Advisor for Loans• Questions with Education• Recommended Suruga Product• With Competition versus Without – Norm
in Japan is Not to Make Competitive Comparisons
• Picture versus Cartoon Character – Many Sites Use Cartoon Characters
CONTINUING WORK• Consumer Research in Japan• Compare Loan Advisor to
– Existing Loan Site– Advisor with Competitive Rates, Cartoon
• Analyze Data– Good Addition to Suruga Site?– Understand Trust Cue of Competitive Comparison in
Japan versus USA and Europe• Morph Site for Cultural Differences and
Cognitive Style