Future of Financial Services

from Customer Perspective

Trends and Challenges

December 2021

Handojo Triyanto
IDC Financial Insights
Table of Contents

1. Indonesia FSI Trends

2. Future of Customer
3. Key Trends for Customer Centric Financial
Services

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Indonesia Financial Services - Trends
Indonesia Financial Services IT Spending in 2020 IT Spending forecast 2020-2025

IDR 22.2 trillion
Indonesia ranked in12 th
among Asia Pacific countries
1.5% of total Asia Pacific financial CAGR 11.7%
services industry IT spending Indonesia ranked in 1st
among Asia Pacific countries

▪ Ecosystem Relationship
Partnerships with
Customers at
Scale
In-line with
Digital No Bad
Lifestyle of Experiences
Transformed toward Ideal Conditions Consumers to Customers

Others:
▪ Consumer Platforms • Cost Reduction
▪ Customer • Faster Delivery Time
Personalization • Innovative Products,
Services, etc.

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Future of Customer IDC Surveys

Top Business Functions Being Transformed

n = 2,165
Source: IDC's Digital Transformation Executive Sentiment Survey, August 2019

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Future of Customer IDC Studies

Worldwide Banking Study

Worldwide Customer
Study
Research has found that
73% of consumers say a
differentiated experience,
not just an acceptable
experience, is what it takes
for a customer to remain
loyal. And loyalty is key in a
competitive market*
Worldwide Insurance
• By the end of 2023, 10% of banks will Study
use consumer digital identities to drive
new, innovative business models By 2024, 50% of all policies
creating new sources of revenue** of non-life and life insurers
will be sold through a fully
• By 2023, 25% of global banks will use AI- automated personalized
based sentiment analysis to improve insurance engine and
customer experience on current and
personally-guided
future products and services***
customer journeys,
• By 2024, 30% of global banks will use creating stronger brand
relevant and responsible loyalty****
personalization as a key differentiation
weapon to create loyal clients***

*Source: IDC Perspective “The Future of Customers and Consumers: Defined”, April 2020, IDC #US46159920
**Source: “IDC FutureScape: Worldwide Financial Services Predictions 2021”, October 2020, IDC #US45821120
***Source: “IDC FutureScape: Worldwide Financial Services & Payments Predictions 2022”, October 2021, IDC #US48299721

****Source: “IDC FutureScape: Worldwide Insurance Predictions 2022”, October 2021, IDC #EUR148299821 © IDC | 5
Future of Customer – A Framework
“An empathetic relationship between
customers and brands built on what the
customer wants and how they want to be
treated through the technology lens of
awareness, engaging, learning, and
measuring.”

1. First Layer: Customer Expectations

2. Second Layer: Data & Technologies
3. Third Layer: Business Outcomes

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The Missions for Digital Transformation
Customer Centric Approach

➢ “To be in line with digital

lifestyle of consumers”

➢ “To create and nurture

relationship with
➢ “To detect and customer with less
mitigate dependency on
continuously the human employee,
potentially bad yet at scale”
experiences of Channels:
customers” ▪ Digital (depending
on customer’s
lifestyle)
▪ Agency
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Key Trends for Customer Centric Financial Services

Ecosystem

Customer
Centric
3
Financial 2

Context
Services Influence

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Mixing from the 3 Prime Strategies…
Establishing Partnership or
Collaboration in the Ecosystem by
➢ Ecosystem Strategy leveraging open API…

……

Expanding Brand Penetration or

➢ Influence Strategy
Influence throughout digital media
and economy…

……

Personalizing and Contextualizing

Products and Services by leveraging
➢ Context Strategy digital data and AI/ML…

……

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