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New  Banking  Distribu1on  Models  

August  2013  

Joydeep  (Joy)  Bha6acharya   Digital  lead,  Financial  services  EALA   Accenture  InteracCve  


Copyright © 2013 Accenture All rights reserved.


Agenda   Macro  trends  affec1ng  banking  Industry   Emerging  models   The  intelligent  mul1channel  bank   The  digital  ecosystem  bank   The  socially  engaging  bank   Next  genera1on  concepts   Copyright © 2013 Accenture All rights reserved. 3 .

 emerging  compeCCon   •  Restoring  customer  trust  and  engagement   •  •  •  •  Providing  a  tailored  and  relevant  customer  experience   Developing  mobile  channels  into  a  sales.  rather  than  service.   4 .  tool   Achieving  a  return  from  investment  in  social  media   Maintaining  margins  in  commodity  product  lines   Retailiza1on   Customer  experience   Technology  adop1on   •  ArCculaCng  a  clear  digital  vision  across  web.Industry  challenges  are  moving  banks  toward  a   re-­‐inven1on…   Transformation drivers Challenges •  DifferenCaCng  services  in  an  increasingly  commodiCzed  market   •  Defending  payment  services  against  new.  social  and  mobile   •  Leveraging  customer  data  efficiently  and  compeCCvely   •  Evolving  legacy  technology  to  compete  with  newer  firms   Creates  a  need  for  new  banking  models   Copyright  ©  2013  Accenture    All  rights  reserved.

  5 .3  New  Priori1es  for  Transforma1on  …   1 The  Intelligent   Mul1channel   Bank   Go  Analy1cal   Strategically  apply   analyCcs  to  more   effecCvely  meet   customers’  financial   needs   2 The  Digital   Ecosystem   Bank   Go  Mobile   Become  the  centre   of  an  ecosystem  –   powered  by  mobile   –  selling  financial   and  non-­‐financial   services   3 The  Socially   Engaging   Bank   Go  Social   Leverage  social  media   interacCons  to   increase  customer   inCmacy   Copyright  ©  2013  Accenture    All  rights  reserved.

 based  on  microsegments   and  opCmized  by  channel   Copyright  ©  2013  Accenture    All  rights  reserved.The  Intelligent  Mul1channel  Bank   Go  Analy1cal   Strategically  apply  analy1cs  to  more  effec1vely  meet  customers’  financial  needs   Advanced  mulCchannel   integraCon.   microsegmentaCon  and   predicCve  modeling   Real  Cme  interacCons   management  for   increased  conversion   rates   Product  offerings  and  pricing   schemes.  focusing  on   digital   Pervasive  analyCcs   uClising  customer  data.   Remote  advisory  services   6 .

The  Intelligent  Mul1channel  Bank   Crea1ng  mul1channel  lean  experiences   Customer needs Products Channels Step 1 Onboarding / Fulfillment Processes Step 2 Step 3 Step 4 Step 5 Step 6 Channels Step 7 Customer experience (based on interaction with the bank) Customer 1 desired experience Customer 2 desired experience Sequence of lower cost for the bank Actions to re-channel customer experience (Values / Convenience / Pricing) Improved Sales Funnel Copyright  ©  2013  Accenture    All  rights  reserved.   7 .

                 Intelligent  Bank  capabili1es   A real-time data engine drives customer touch-points based on a wide range of data sources EMAIL   EMAIL   CALL  CENTER   CALL  CENTER   Outbound   Inbound   DIRECT  MAIL   DIRECT  MAIL   BRANCH   BRANCH     WEBSITE   WEBSITE   MOBILE  APP  /   SMS   Copyright  ©  2013  Accenture    All  rights  reserved.   MOBILE  APP  /   SMS   8 .

  9 .The  Digital  Ecosystem  Bank   Go  Mobile   Become  the  centre  of  an  ecosystem  –  powered  by  mobile  –  selling  financial  and  non-­‐ financial  services   Mobile  payments.  loyalty   and  analyCcs  enrich   proposiCons  through   mobile  commerce     Managing  alliances   and  partnerships  with   non-­‐banking  operators   Powered  by  set  of  founda1onal  digital  capabili1es     Copyright  ©  2013  Accenture    All  rights  reserved.  enhance   bank  compeCCveness  and   customer  retenCon   Mobile  markeCng.  based  on   Near  Field  CommunicaCon   or  mobile  wallet.

Rise  of  Ecosystems   Ecosystems  provide  banks  with  the  opportunity  to  enrich  their  customer  insight  and   therefore  personalize  proposi1ons   “Connect  me”  ecosystem   “Share  experience”   ecosystem   “How  to  manage  my     money/  my  transac1ons/ marketplace”  ecosystem   “Help  for  searching  for   stuff”  ecosystem   “Now  discover”  stuff   ecosystem   Copyright  ©  2013  Accenture    All  rights  reserved.   10 .

What  could  the  Bank  Ecosystem  look  like?   •  Extend  Customer  reach  with  a  trusted  brand   •  Maximize  Customer  contact  capability   •  Access  to  digital  markeCng  through  customizable  loyalty  programs   •  AddiConal  channel   for  Customer  pull   •  New  revenues   streams  from  non-­‐ financial  products   •  Allows  e-­‐sell  of   the  e-­‐commerce   infrastructure   Merchants Bank Customers • MulCchannel  pla`orm   aggregaCng  merchant’s   proposiCon     • TransacCons-­‐based   analyCcs   • Digital  markeCng   support     •  “One  stop  shop”  to  saCsfy  mulCple  Customer  needs   •  Selected  and  targeted  offering  driving  loyalty   •  Combines  online  and  offline  proposiCon. 11 .  improving  customer  experience   Copyright © 2013 Accenture All rights reserved.

Bank  of  America  integrates  3rd-­‐party  discounts   and  offers  into  online  banking   Bank  of  America’s  BankAmeriDeals  evaluates  customer  card  spending  and  offers   discounts  based  on  previous  purchases  made  in  commercial  stores     §  Customized  discount  offers     embedded  in  users’  statements   §  Deals  first  offered  to  employees  for  feedback   before  opening  the.   .  up  to  its  customer  base   §  Internet  banking   site  offers   personalized   offers   throughout  the   user  experience   12 Copyright  ©  2013  Accenture    All  rights  reserved.

Alternate  means  of  banking  at  Garan1   Turkey’s  Garan1  Bank  and  mobile  phone  operator  Turkcell  have  teamed  up  with   MasterCard  to  launch  a  prepaid  SIM  card  called  Cep-­‐T  Para     •  Combines  mobile  and  banking  services   •  SIM-­‐based  secure  service  that  can  be  used  with  any   mobile  handset  device     •  Turkcell  customers  access  payment  systems  offered  by   GaranC  Bank  without  being  a  direct  bank  customer   With  the  launch  of  this  new   prepaid  card  service.   •  Can  be  used  at  any  store  accepCng   MasterCard   •  Available  at  any  Turkcell   CommunicaCon  Center     •  Load  money  to  the  card  using  any   GaranC  ATM   13 .   Garan1  plans  to  gain  1.5   million  addi1onal   unbanked  customers  within   the  next  three  years   Copyright  ©  2013  Accenture    All  rights  reserved.

  facilitaCng  more  effecCve   proposiCons   Copyright  ©  2013  Accenture    All  rights  reserved.   miCgate  risks  and   promptly  react  to  issues   Social  digital  marke1ng  to   define  the  best  content  for   individual  customer   profiles  and  a6ract  them   Social  CRM  to  enrich   customer  data  with  social   media  informaCon.   14 .The  Socially  Engaging  Bank   Go  Social   Leverage  social  media  interac1ons  to  increase  customer  in1macy   Social  media  monitoring   to  engage  customers.

The  Socially  Engaging  Bank   Go  Social   Top  Areas  of  Interest     Customer  Service  on  Twi_er   SOCIAL  CUSTOMER  SERVICE     Ini1a1ves     Integrated  CRM  module  for  Twi_er   and  Facebook   Virtual  Branch  on  Facebook       Online  bank  account  integra1on  on   Facebook   SOCIAL  BANKING     Social  Banking  and  Payment  integra1on   P2P  Payments  via  digital  wallet   P2P  TRANSACTIONS     P2P  Payments  via  bank  account   integra1on   Social  goal  seang  /  Crowdfunding   Copyright  ©  2013  Accenture    All  rights  reserved.   15 .

 learn  &  refine   Drive  business   Engage  Users   Build  communi1es   Create  audience  with  several  communiCes   aggregated  on  relevant  interests/  topics   Have  on  going  business  interacCons     with  Social  Media  users   Achieve  results  integraCng  Social  Media  as     an  engaging  layer  (“service  pla`orm”)   ■  Understand  your   posiCon  (brand  &   products)   ■  Leverage  influencers   ■  Address  customer   ■  Develop  new   needs  and   complaints   offerings   ■  Collect  relevant   data   Collect  relevant   feedback  to  feed   other  key   components  and   tune  iniCaCves   Listen   Brand   Product   Ini1a1ves   Customers   Copyright  ©  2013  Accenture    All  rights  reserved.Social  media  transforma1on  journey   Test.   16 .

g.  member  get  member)   ■  IniCaCves  leveraging  “social   informaCon”   ■  LocaCon  based  iniCaCves   ■  Understand  your   posiCon  (brand  &   products)   ■  Leverage  influencers   ■  Address  customer   ■  Develop  new   needs  and   complaints   offerings   ■  Collect  relevant   data   Collect  relevant   feedback  to  feed   other  key   components  and   tune  iniCaCves   Listen   Brand   Product   Ini1a1ves   Customers   ■  Overall  posiConing   ■  Overall  senCment  about  exisCng  or  new  products   ■  CollecCon  of  feedback  about  iniCaCves   ■  IntercepCon    of  customer  complains   ■  Enrich  customer  profile  by  collecCng  customer  interests   Copyright  ©  2013  Accenture    All  rights  reserved.Social  media  transforma1on  journey   Test.   17 .  learn  &  refine   Engage  Users   Build  communi1es   Create  audience  with  several  communiCes   aggregated  on  relevant  interests/  topics   ■  by  products   ■  by  financial  need   ■  by  non  financial  need   ■  by  customer  segment     Drive  business   Achieve  results  integraCng  Social  Media  as     an  engaging  layer  (“service  pla`orm”)   ■  Product  development   ■  IniCaCves  leveraging  virality     Have  on  going  business  interacCons     with  Social  Media  users   ■  Q  &  A  sessions   ■  “Offline”  caring  aier  online  intercepCon   ■  Customer  care   ■  Contests  (to  get  influencers)   ■  “Edutaining”  videos   ■  Entertaining  apps/  videogames   ■  Virtual  Branch   (e.

  18 .  Fidor   allows  customers  to  register  through  Facebook   Connect   •  P2P  lending  through   crowdfunding   •  Online  beang  pladorm  for   short-­‐term.  a  German  100%  online  bank.  leverages  social  media  for  its  day-­‐by-­‐day   ac1vi1es.  low-­‐value  stock   market  trading   •  Saving  account  interest   rates  based  on  number  of   Likes  on  bank  Facebook   page   Copyright  ©  2013  Accenture    All  rights  reserved.     •  Describing  itself  as  “banking  with  friends”.Infusing  social  media  concepts  into  banking  at   Fidor  Bank   Fidor  Bank  AG.

 Uses  social  media-­‐derived  scores  to  determine   pricing  and  access  to  products.  uClizing  the   social  media  reputaCon  of  the  customer.Moven  using  social  media  reputa1on  in  credit   scoring   Moven  is  an  innova1ve  New  York-­‐based  start-­‐up.   •  CRED  score  used  to  make  decisions  about   services  and  pricing   •  e.   •  Mobile  phones  used  as  primary  payment  devices.  CRED.   replacing  credit/debit  cards  and  cash   •  Visual  personal  financial  management  tool   •  Introduced  financial  health  score.g.   19 .  improving  CRED  scores  earn  the  right  to   checking  account  with  overdrai  protecCons   Copyright  ©  2013  Accenture    All  rights  reserved.  All  transac1ons  are  conducted   online  or  through  mobile  devices.

 for   example  knowing  how  much  does  a  similar   profile  spend  for  housing  in  the  same  postcode   zone   Copyright  ©  2013  Accenture    All  rights  reserved.   giving  informaCon  on  different  categories  such   as  uCliCes.  shopping.  an   econographic  tool  which  allows  Australian  to  compare  finances  and  spending  habits   •  PeopleLikeU  is  a  stand  alone  website  which.   allows  users  to  compare  spending  habits  in  a   precise  area   •  This  website  enables  Australians  to  select  their   Once  selected  the  profile.  food  and  travel:   users  can  therefore  have  specific  informaCon   about  spending  level  in  a  precise  area.  housing.  a  Na1onal  Australia  Bank  group  ins1tute.   relying  on  a  dataset  made  by  historical   informaCon  from  NaConal  Australia  Bank.  this  tool  provides   specific  staCsCcs  on  sample  expenditures.   20 .  has  developed  PeopleLikeU.UBANK  -­‐  Crea1ng  a  stand-­‐alone  website  to  compare   users  spending  habits  in  Australia     UBank.

 both   financial  and  non-­‐financial.Next-­‐genera1on  online  banking   The  characteris1cs  of  a  future-­‐looking  OLB  experience   Analy1cal   Using  all  of  the  informaCon  about  a   customer  to  their  advantage.  rather  than  selling  banking   products   .   creaCng  a  deep  and  intuiCve   understanding  of  their  goals   Ecosystem   A  network  of  partnerships.  seamlessly   integrate  a  customer’s  banking  acCviCes   with  the  rest  of  their  day-­‐to-­‐day  life   Social   Leveraging  the  power  of  a   customer’s  social  network  to  create   a  greater  personal  inCmacy   Experience-­‐led   Focusing  on  fulfilling  a  customer’s   needs.

    •  Build  a  wide  network  of  partnerships   .  targeted  content   •  Online  tools  that  help  a  customer   achieve  their  goals   •  Predict  and  an1cipate  customer   demands   What  might  a  next-­‐genera1on  experience  look  like?   Superior  Service   •  A  customer-­‐centric  user  experience   that  engages  on  an  emoConal  level   •  A  consistent.  joined-­‐up  service  across   any  channel  or  device   •  Mul1ple  channels  of  help  and   assistance   Atomised   •  Make  func1ons  available  beyond  the   bank’s  web  site   •  Take  advantage  of  emerging   consumer  technology   Ecosystems   •  Understand  a  customer’s  social   circumstances  and  connecCons.Clients  will  demand  new  capabili1es  and  func1ons   Managing  Money   •  Highly  relevant.