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1-to-1 Banking in a Digital World
1.
© 2014 Merkle.
All Rights Reserved. Confidential Marketing Insights 1:1 Banking in a Digital World Special Edition September 2014
2.
© 2014 Merkle.
All Rights Reserved. Confidential Commentary “With the rapid growth of digital channels, consumer behavior is changing faster than ever as customers have access to convenience and immediacy in nearly every aspect of their lives. No less is expected from their bank. As the marketplace is changing, the cost of maintaining full-service branches is becoming harder to justify, and the role of the branch is being redefined to reflect the new digital reality. The focus becomes less on the physical structure, and more towards banking that can be done at a time and place most convenient to the customer. The competitive environment is also shifting. The emergence of new technologies, non-bank competitors, partnerships and underserved segments has also created great risk and opportunity for banks. With technology widely available at a marginal cost, digital disruptors are adopting new business models that often let them bypass any regulatory hurdles and deliver superior customer experiences at a fraction of the cost. Despite these challenges, banks posses a competitive advantage in the digital world given their vast amounts of customer and transactional data, large customer bases and irreplaceable experience in payments, security and compliance. However, simply “being more digital” will not be enough to confront new and non-traditional threats. With so many new players in the industry impacting the way people view financial services, banks must be willing to embrace change to remain on top of the rapidly evolving needs of their customers. To confront new and non- traditional threats, traditional banks must focus on playing a deeper role in the lives of their customers. This encompasses introducing a new form of engagement and experience that leverages the potential of big data for better 1:1 interactions and more powerful marketing. While control may have shifted to consumers, financial institutions that have the appropriate infrastructure in place will create competitive advantage.” © 2014 Merkle Inc. All Rights Reserved. Confidential. 2 - Diana Tummillo Vice President, Banking & Finance - Alison Berman Senior Market Research Manager
3.
© 2014 Merkle.
All Rights Reserved. Confidential 2015 Trends • The digital revolution is disrupting the competitive landscape. Disruption in banking has become the new reality as technologies dissolve the boundaries between industry sectors, and non-bank competitors look to expand the customer experience in other traditional areas of banking. • The rapid growth of digital channels and changing customer preferences are redefining the roles played by branches. As customers continue to migrate to digital channels, banking has become less dependent on a physical structure and is more focused on how banking can be done at a time and place most convenient to the customer. Many banks are reconfiguring traditional branches to reflect this new digital reality. • The marketplace has changed significantly around how consumers are engaging with their financial institutions. Consumers are more likely to determine their banking partners by ease of accessibility and trust over branch network and capital adequacy, as was once the case. • Mobile wallets threaten to disrupt the relationship between customers and their primary financial institution at the point of sale. Relationships, revenue and visibility of transactional data are all at stake, depending on whether wallets move to hide the funding source behind the wallet provider. • Social media has introduced a new form of engagement that harnesses the power of the internet without sacrificing a personal touch. In the age of social media, the balance of value has tipped back in favor of the consumer. Consumers are assessing brands with a social lens that now lets them make decisions based on recommendations from the “crowd.” • Despite these challenges, banks possess innate competitive advantages in the digital world. Banks have the ability to leverage big data for better 1:1 interactions and more powerful marketing. 3
4.
© 2014 Merkle.
All Rights Reserved. Confidential Merkle’s POV 4 This will require a massive refocus on honing skill sets, intellectual property, experience, technology and data Organizations will get back to basics in customer segmentation, have a better understanding of customer behavior and adjust value propositions accordingly It will require capabilities for inbound and outbound engagement and consolidation of the customer view among all offline and online touch points Organizations will be able to understand customer value, maximize customer interactions and better manage customer relationships Customers will experience a seamless delivery as they move fluidly on their journey through the consideration and buying process To facilitate a true 1:1 approach to customer engagement, banks must rapidly respond by embracing new capabilities that are driven by more customer centric marketing strategies.
5.
© 2014 Merkle.
All Rights Reserved. Confidential Contents • Changing Consumer Behavior and Impact on Channel Usage • The Core Function of the Branch and Evolution of Self-Service • The New Age of Digital Commerce and Alternative Banking • The New Age of Social Media • Customer Engagement • Merkle’s POV 5
6.
© 2014 Merkle.
All Rights Reserved. Confidential Changing Consumer Behavior and Impact on Channel Usage
7.
© 2014 Merkle.
All Rights Reserved. Confidential Channel Preferences and Usage Patterns Shift to Digital The marketplace has changed significantly around how consumers are engaging with their financial institutions. As consumers shift to digital channels and online banking capability improves, customers have greater control and choice on how they access their bank. 7 Sources: King, Brett. Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. Wiley; 1 edition (December 26, 2012). “Rethinking Multichannel Strategy,” CEB TowerGroup Research, April 2013; https://thefinancialbrand.com/33346/bank-checking-account-customers-research/ Average No. of Transactions Per Channel Each Month Source: TD Bank Checking Experience Index, 2013 Delivery Channel Transaction Volume (in Millions) Source: CEB TowerGroup Research Nearly 80% of checking account holders use online banking as their primary channel. Of the total number of transactions checking account holders conduct each month, 6 out of 15 transactions occur online.
8.
© 2014 Merkle.
All Rights Reserved. Confidential Consumers Expect Quick Access and Immediacy The drive to visit the branch continues to diminish in importance as customers rely on the online channels as their primary access point for opening accounts and making transactions. 8 *Data from 1,000,000+ applications from a sample of customers January 2010 – December 2012. Sources: “The Future of Account Opening,” Andera, January 2014; “How Consumers Select and Purchase Financial Products,” Andera/Novarica; http://info.andera.com/rs/andera/images/How_To_Hook_A_Moneyhawk_Andera.pdf Online Applications Accessed via Mobile Device (%) Online Applications: Tablet vs. Smartphone (%)* Banking applications via a mobile device increased more than 800% from 2010-2013. Percent of Consumers Who Applied to Open Accounts in Past Year In 2013, 88.5M people attempted to open a financial account either online or via mobile. Credit card applications topped the list, with 21% of consumers applying via online or mobile channels.
9.
© 2014 Merkle.
All Rights Reserved. Confidential Consumers Access Online Banking Across Multiple Devices Online banking queries are present across devices, with rapid growth occurring via mobile. This makes websites and mobile even more important as consumers are driving to landing pages from various platforms. 9 Sources: “The Future of Account Opening,” Andera, January 2014; “How Consumers Select and Purchase Financial Products,” Andera/Novarica. Number of Banking Users (millions) Source: Nielsen Panel, March 2013 % of Time Spent Banking by Device Source: Nielsen, March 2013 Online and Mobile Banking Users Source: Pew Research
10.
© 2014 Merkle.
All Rights Reserved. Confidential The Mobile Experience is a Game-Changing Competitive Factor According to the below statistics from Google, it is highly apparent that the customer experience within the mobile channel has increasingly become a game-changing competitive factor for marketers. 10 Sources: Google Financial Insights; Google Our Mobile Planet Study 2012; Google “What Users Want From Mobile” Study 2012.
11.
© 2014 Merkle.
All Rights Reserved. Confidential Consumers Want Convergence of Online and Mobile Offerings In addition to the rapid adoption of mobile banking and proliferation of mobile devices and platforms, there is a growing customer need for a mobile banking experience that is consistent with their online banking experience in terms of functionality and ease of use. 11 Sources: “Trends in Retail Banking Channels: Opportunities in a Changing Landscape,” Capgemini, 2013; Google Our Mobile Planet Study 2012; Google “What Users Want From Mobile” Study 2012. • Online banking queries are present across devices, making websites and mobile even more important as consumers are driving to landing pages from various platforms. • Customers use mobile for quick answers and are leveraging search and videos to obtain information about branches, new products and deals. • Consumers expect apps to support the full functionality of a branch as mobile is now the go-to destination for bill paying, checking balances and more.
12.
© 2014 Merkle.
All Rights Reserved. Confidential More Online Users Will Shift to Mobile in Years to Come Sources: https://www.javelinstrategy.com/news/1478/92/Mobile-Device-Boom-Led-to-74-000-New-Mobile-Bankers-per-Day-in-2013/d,pressRoomDetail “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014. Percent of U.S. Adults Using Mobile Banking in Past 12 Months (millions of U.S. adults) Source: Javelin, March 2014 Mobile banking adoption increased by 40% in 2013, leading to 74k new mobile bankers per day in 2013. Desktop online banking is expected to fall as more and more users go mobile. Research companies are predicting 500 million to 1 billion worldwide mobile banking users by 2017. Mobile Banking vs. Online Banking Usage: 2025 vs. Today (U.S. households) Source: Online Banking Report, January 2014 Consumer Households Using Online vs. Mobile Banking (millions of U.S. households) Source: Online Banking Report, January 2014 12
13.
© 2014 Merkle.
All Rights Reserved. Confidential Video Becoming Integral Part of Consumers’ Online Experience Consumers are leveraging videos to search for quick answers and information about new products and deals. The use of video content in conjunction with email can also significantly improve response and drive results. 13 Sources: Google Insights; Compete “Profiling Credit Card Applicants” Study, 2012; Compete “YouTube Audience Profile for Credit Card Applicants” Study, 2013; Nielsen @Plan Q2 2013; http://thefinancialbrand.com/38226/best-bank-credit-union-onboarding-integrates-digital-mobile-channels/ • 74% of all internet traffic in 2017 will be video • Using the word “video” in subject line boosts open rates 18.5%, click rates by 64.8% • The number of mobile users who watch video monthly will rise from 72M in ‘13 to 87M in ‘14 • 52% of marketing professionals name video as the content with best ROI • Credit card shoppers watch 25% more online video than the average online adult one month before opening a card • Search engine results favor video 90% of credit card shoppers visit YouTube at least 1x month Video in email boosts open rates by 20% and click rates by 2-3x Capital One 360 posts videos on how to use mobile remote deposit capture on YouTube. Allstate includes a video in an email, increasing the customer engagement.
14.
© 2014 Merkle.
All Rights Reserved. Confidential Individual Customers Prefer Different Channels for Different Purposes Research shows that individual customers prefer different channels for different purposes. For banks to gain competitive advantage, customers expect to be able to move easily from one channel to another without degrading response. 14 Channel Preference for Product Life Cycle Activities (Percentage of Banking Customers) Source: CEB TowerGroup Research 0% 10% 20% 30% 40% 50% 60% 70% 80% DDA Loans Invest Online Branch Advice Phone Top Research Preference by Account Type Source: Novantas Bank Shopping and Industry Trends Sources: Novantas Bank Shopping and Industry Trends; http://thefinancialbrand.com/33760/marketing-banking-services-in-mobile-channels; “Rethinking Multichannel Strategy,” CEB TowerGroup Research, April 2013; http://www.zaginteractive.com/about/blog/blog-post/the-z-drive/2013/12/09/digital- marketing-trends-for-banks-and-credit-unions-in-2014 Willingness to open online varies significantly based on the product complexity and economic significance to the consumer.
15.
© 2014 Merkle.
All Rights Reserved. Confidential Rapidly Changing and Growing Complex Consumer Buying Behavior While customers will choose different channels for different types of transactions based on their individual preferences, banks must be ready to provide a consistent experience across channels in order to meet this increasingly complex environment. 15 Sources: http://celent.com/reports/raising-bar-multichannel-banking; http://www.bai.org/Libraries/LOB-SPs-Downloads/Banking-by-Appointment-eBook- revised.sflb.ashx ; FMSI, NCR CEB Tower ; BAI Webinar: “Retail Banking Transformation” March 26, 2014
16.
© 2014 Merkle.
All Rights Reserved. Confidential The Core Function of the Branch and Evolution of Self-Service
17.
© 2014 Merkle.
All Rights Reserved. Confidential The Core Function of the Bank Has Changed Initially the core utility of a bank could be accessed only through a branch. But today, the primary utility of a bank is available digitally 24/7, where consumers access the utility more easily though the web, mobile, ATM and tablet — while the branch slows and complicates this utility. The future relationship will be one where the bank, its products and services are available at a time and place most convenient to the customer. 17 Sources: Brett King and the Death of the Branch: Part 2,” CU Times, April 24, 2013.Mintel Oxygen Report, “Consumer Attitudes Toward Technology in Financial Services,” September 2013 ; http://www.accenture.com/microsite/everydaybank/Documents/media/Accenture-EverydayBank-NewVisionforDigitalAge.pdf ; The Financial Brand, October 2012; Novantas Research Average customer visits their bank branch 3x per month Average online customer interacts with their bank 2x per day Branch Activity Preferences Online Activity Preferences
18.
© 2014 Merkle.
All Rights Reserved. Confidential As Channel Usage Shifts, It Becomes Harder to Justify the Cost of Maintaining Full-Service Branches 18 Banks Closing Branches at Record Rates Source: http://online.wsj.com/news/articles/SB10001424052702303277704579347223157745640 As transactions continue to migrate to online and mobile channels, more banks are reconfiguring their traditional branches to reflect the new digital reality, with many banks also starting to close unproductive branches. These trends will only escalate going forward due to the costs of delivery and the reduced revenue potential. • The number of bank branches peaked in 2010 and has been falling since • In 2013, banks cut 1,487 branches (1.5% of total) • On average, branches with < $10MM in deposits lose $200K/year
19.
© 2014 Merkle.
All Rights Reserved. Confidential Banks Respond by Testing New Self-Service Branch Operating Models Due to pressures of serving customers in low-cost ways, banks are trying new strategies, like launching smaller technology centers that showcase branches as digital platforms that excite the customer about alternative channels. 19 Sources: http://newsroom.bankofamerica.com/press-releases/consumer-banking/bank-america-opens-new-generation-banking-centers; http://www.bizjournals.com/charlotte/blog/bank_notes/2013/10/bofa-branch-blog.html; http://thefinancialbrand.com/32306/pnc-bank-pop-up-branch/ 24-hr access to full-function ATMs Increases network productivity Enhances customer experience Generates revenue Maximizes customer engagement Small square footage footprint Cuts traditional branch operating costs in half Paperless, physical integration of technology into design Wells Fargo became the first to offer a smaller express branch when it unveiled its “neighborhood store” earlier last year. Bank of America recently piloted new “Express Banking Centers” that offer more technology and more flexibility. PNC unveiled the first ever pop-up branch at only 160 square feet.
20.
© 2014 Merkle.
All Rights Reserved. Confidential Revamping Branch Networks Around Customer Experience 20 Wells Fargo uses the ATM to generate more sales leads for other channels by offering to email interested customers more information about specific products. Sources: “Banks Should Use ATMs To Boost Sales,” Forrester, November 2013; http://www.mobilecommercedaily.com/citi-app-tests-enabling-account-balance-access- without-logging-in; http://www.adweek.com/news/advertising-branding/citi-pushes-be-amazon-banking-155533; http://www.ft.com/cms/s/0/5cb77220-89e5-11e3- abc4-00144feab7de.html#axzz2sZsJUxXw ; http://www.americanbanker.com/issues/179_13/bbva-tests-drive-through-videoconferencing-in-texas-1065027-1.html Citi’s new customer-centric ATMs remember customer preferences, offer directions in multiple languages and speed up the transaction process by allowing customers to quickly check balances without going to multiple screens. BBVA is increasing functions of self-service channels with “drive-thru banking,” where customers interact with remote tellers via high- definition devices, doubling as full-service ATMs. In addition to physical design, building the bank of the future will also require a focus on customer experience. As banks move to self-service channels, they are revamping current brick-and-mortar networks and improving sales effectiveness. By integrating the ATM with CRM systems, they can further personalize and enhance the customer experience.
21.
© 2014 Merkle.
All Rights Reserved. Confidential Leveraging Digital Channels Without Sacrificing the Human Touch While it is not practical for full-service branches to be open 24/7, remote channels that are made available must become more robust to align with consumer expectations. If assistance is not readily available in self-service channels, the consumer may abandon the channel altogether. As a result, banks are ensuring help is accessible on every channel. 21 Sources: Novantas Review: Making Multi-Channel Work, Vol. 4, No. 1, 2013; “Online Lenders, Big Banks Vie for Website Gold,” American Banker, February 2014; “Must-Have Features For Public Sites Of Wealth Management Firms,” Forrester, September 2013; “An Overview of Multi-channel Banking,” Infosys, 2011; http://thefinancialbrand.com/37874/omni-channel-personalized-banking Fidelity offers escalation to human help via instant message/chat, email or phone on its search results page. Chat tools not only show visitor intent but also visitor nomenclature such as which products they called about. E-Trade and Charles Schwab both won awards for their online-help resources and live chat functions.
22.
© 2014 Merkle.
All Rights Reserved. Confidential Using Online Channels to Drive Branch Interactions By offering self-service appointment scheduling, BMO and Bank of America are proving that digital channels can be used to complement physical branches, convert online prospects for high-value services and unify service delivery across channels to build stronger customer relationships. 22 Sources: http://newsroom.bankofamerica.com/press-releases/consumer-banking/bank-america-opens-new-generation-banking-centers; http://www.bizjournals.com/charlotte/blog/bank_notes/2013/10/bofa-branch-blog.html BMO allows customers to book in-person branch appointments online and promotes the service via social media, as observed here on Twitter. Bank of America compels consumers to schedule a branch visit online when they’re in the process of researching products and their interest is at its peak. Bank of America also lets customers schedule appointments from their Facebook page or via mobile app.
23.
© 2014 Merkle.
All Rights Reserved. Confidential The New Age of Digital Commerce and Alternative Banking
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© 2014 Merkle.
All Rights Reserved. Confidential The Rapidly Changing Mobile Landscape Digital Wallets Mobile PaymentsMobile Money Digital wallets are an integrated payment service for making online and offline transactions; provides other services such as loyalty, rewards, couponing, membership, offers, receipts, etc.; can be accessed across channels (POS, mobile, online), technologies (bar code, NFC, cloud, SMS) and device (tablet, mobile, PC), depending on the solution Mobile wallet, in a narrower sense of a digital wallet, is a service that requires a phone to provide proximity payments and other commerce‐related activities (loyalty, deals, and more) Mobile payments are payments made through a mobile device; includes bill payment, P2P (person‐to‐person) transfers, payments made at the POS, via mobile app, or on the mobile web through a browser (or other authorization to pay) Financial-inclusion initiatives that deliver bank-like services via mobile device; use a market-optimized network to replace cash These mobile infrastructures have supported financial systems in developing countries Examples: • M-Pesa (Kenya) • G-Cash (Philippines) • WING (Cambodia) • MTN M-Money Mobile Banking Adding mobile as a service channel for existing bank customers Very similar to internet banking in terms of functions and features Mobile Advertising A form of advertising via mobile phones or other mobile devices Types: • App Display Ads • Search Ads • SMS Ads • WAP Display Ads • Push Notifications Hot items: • Marketing ID – Google, Twitter, Apple ID • Cookies don’t work in apps • Native Ads (promoted tweet, promoted account) 24 CHANNEL SERVICE BANK MARKETING FACILIATING PAYMENT/COMMERCE The mobile landscape is rapidly changing, with the most noteworthy changes occurring in the facilitation of payments and commerce. Source: King, Brett. Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. Wiley; 1 edition (December 26, 2012).
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All Rights Reserved. Confidential The Mobile Wallet Competitive Set 25 One of the latest trends redefining the industry is the mobile wallet. Multiple companies from various sectors, including merchants, card associations and technology and financial institutions, have gone to market with a mobile wallet. Source: King, Brett. Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. Wiley; 1 edition (December 26, 2012).
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All Rights Reserved. Confidential Payments Taxonomy How a payment is processed: • Card Networks (Visa, Mastercard and American Express) • ACH • Independent Networks (Non-Card) • Bitcoin What is used to pay (or how identity is asserted and payment initiated): • Physical - Using a physical card (credit/debit), cash and/or checks • Mobile - Using a mobile device (smartphone, tablet, or "wearables") to pay in a way that does not involve a card or a number from a card; mobile device serves as the actual instrument Where payment takes place: • Bricks and mortar/ Point of Sale (POS) – In-person payments • Online - Not-in-person payments; split into four deeper sub-scenarios: 1. Web 2. In-app (mobile) virtual goods 3. In-app (mobile) for real goods 4. Auto reoccurring payments Who is paying who: • B2C - Consumers paying businesses • B2B - Businesses paying businesses • P2P domestic - Consumers paying other consumers • P2P international - Consumers paying consumers across borders, usually called "remittances" Source: http://www.thebusinessofbitcoin.com/2014/02/a-payments-taxonomy.html 26 Given all the intricacies of the payments space, the below framework can be used as a guide for understanding this increasingly complex landscape. Networks Instrument Scenario (Location) Participants How? What? Where? Who?
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All Rights Reserved. Confidential Change Most Evident in Alternative and Mobile Payments 27 Sources: Accenture, “The Everyday Bank,” 2014 http://www.accenture.com/microsite/everydaybank/Documents/media/Accenture-EverydayBank-NewVisionforDigitalAge.pdf Worldwide Mobile Payment Transactions (Billions) Source: 2013, Biometrics Research Group, 2013 Mobile-enabled payments are experiencing record growth rates as technology has become widely available at a marginal cost. As a result, there are numerous start-ups and digital disruptors emerging in the payments space. By adopting new business models that let them bypass regulatory hurdles, they are able to deliver superior experiences at a lower cost. Mobile-enabled payments are expected to increase 3X from 2014 to 2020. While alternative payments players represented just 1.5% of the European market in 2012, it is estimated that figure will increase to 15% by 2020—an annualized growth rate of more than 35%. Alternative Payments Transaction-Volume Outlook (Billions) Source: Accenture Research; Analysis of ECB, EPC, WorldPay, Visa data, 2014
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All Rights Reserved. Confidential Emerging Payments Chipping Away at Traditional Payments 28 Emerging payments are chipping away at traditional payments and could put downward pressure on cash use sooner than expected. According to Javelin Strategy, cash dropped by 10% of total POS payment volume in 2013 and is forecasted to drop even further in upcoming years in response to changing consumer demand for instant access and a surge of non-traditional P2P vendors. Sources: https://www.javelinstrategy.com/news/1488/92/Mobile-Payment-Readers-The-Square-Effect-Drive-Cash-Down-by-10/d,pressRoomDetail http://maps.yankeegroup.com/ygapp/content/ff860fab709a4eaa82ccc8652894c4f0/51/DAILYINSIGHT/0 The Number of U.S. P2P Users Will Reach 44 Million in 2018 Remote Mobile Payment P2P Users in Millions Source: Yankee Group’s Mobile Forecast, March 2014 Cash Will Lose Nearly $100B in POS Volume by 2019
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All Rights Reserved. Confidential New Generations Increasingly Open to Alternative Banking Options 29 Sources: Accenture, “The Everyday Bank,” 2014; Mintel Comperemedia; http://www.accenture.com/microsite/everydaybank/Documents/media/Accenture-EverydayBank-NewVisionforDigitalAge.pdf If these companies offered banking services, how likely would you be to bank with them? (Likely or Very Likely) As non-banks aggressively peruse digital innovations to capture more and more of the banking value-chain, new generations of customers have become increasingly open to alternative banking options. As this generational divide continues to emerge, banks that align to the customer instead of the product will have an upper hand. “I will never have an account with an internet-only bank because I want the personal service I get at a branch”
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All Rights Reserved. Confidential Noteworthy Players: Google Wallet (NFC Payments) 30 Google Wallet is a mobile app that can be used on NFC-capable phones to pay at NFC-enabled POS terminals. Funds can be held and withdrawn from a web-based Google Wallet account. Google also created a digital wallet with an accompanying plastic debit card to deliver new value to consumers. Sources: Accenture, “The Everyday Bank,” 2014; http://thenextweb.com/google/2011/05/26/google-launches-local-deal-service-google-offers/; http://tomnoyes.wordpress.com/2012/08/03/paypal-vs-google-at-pos/; http://www.accenture.com/microsite/everydaybank/Documents/media/Accenture- EverydayBank-NewVisionforDigitalAge.pdf Mobile POS Transforms Customer Engagement: POS units are dramatically underutilized from a customer experience perspective. Payment at the POS provides an opportunity to reach people at a point of heightened money consciousness and leverage personal information to offer consumers compelling, relevant and timely messages. The Google Card works as a bank debit card at the POS and has functionality of automatically utilizing offers and loyalty programs.
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All Rights Reserved. Confidential Noteworthy Players: Isis Mobile Wallet (NFC Payments) 31 Isis Mobile Wallet is a mobile app that can be used on NFC-capable phones to pay at NFC- enabled POS terminals. Funds can be drawn from an American Express Serve account or Chase and American Express credit cards. Source: “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014.
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All Rights Reserved. Confidential Noteworthy Players: Venmo (Third-Party Platform) 32 Venmo is a free social payments network that serves as a platform for users to pay each other using their linked debit card or bank account. The app currently supports payments to other Venmo users, as well as in-app payments. Source: “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014. Venmo currently works with 6 apps: Belly, Hotel Tonight, Living Social, Task Rabbit, Trunk Club and Yplan.
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All Rights Reserved. Confidential Noteworthy Players: PayPal (Third-Party Platform) 33 PayPal is a P2P payments network that enables users to send money to others’ PayPal accounts via email, phone number or text message. Available in 190 countries and 24 currencies, PayPal is now the leading online payment method, with more than 120M digital wallets in use overall. Sources: Accenture, “The Everyday Bank,” 2014; WorldPay “Global Online Shopper Report,” April 2012. http://www.statista.com/chart/873/consumer-awareness-and-usage-of-digital-wallet-services/ http://www.accenture.com/microsite/everydaybank/Documents/media/Accenture-EverydayBank-NewVisionforDigitalAge.pdf Consumer Awareness and Usage of Digital Wallet Services, U.S. Source: comScore
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All Rights Reserved. Confidential PayPal Here was its first payment card reader launched with a magstripe reader and chip and PIN acceptance capability. PayPal unveiled Beacon in 2014, a location-sensing device that sends out a BLE signal to customers with the PayPal app. Based on their physical location in a store, customers can receive special offers via the PayPal app and make hands-free payments. Source: http://www.usatoday.com/story/tech/2013/09/09/paypal-beacon-stores/2789275/ Noteworthy Players: PayPal Here and PayPal Beacon (Mobile POS) PayPal Beacon is a small stick that plugs into the wall and lets stores automatically identify and authenticate PayPal users via Bluetooth as they enter the store.
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All Rights Reserved. Confidential Noteworthy Players: Starbucks (Mobile POS) 35 Starbucks has become the poster child for mobile payments in the U.S. Today it has 10% of its customers paying with its proprietary QR code-based app. The Starbucks loyalty card handles nearly one-third of the company’s U.S. transactions, where frequent prepaid card users can see a return of well over 10% through rewards, refills and other offers. Sources: Accenture, “The Everyday Bank,” 2014; “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014. http://www.accenture.com/microsite/everydaybank/Documents/media/Accenture-EverydayBank-NewVisionforDigitalAge.pdf Starbucks’ loyalty app has over 10M users and 5M weekly transactions, demonstrating people’s willingness to embrace mobile payments. Upon opening the Starbucks-branded app, consumers select the “Touch to Pay” button, and then scan the automatically generated bar code. Mobile Payments Volume at U.S. Starbucks (in millions) Source: Business Intelligence estimates and Starbucks, Jan 2014
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All Rights Reserved. Confidential Noteworthy Players: Square and Square Wallet (Mobile POS) 36 Small, disruptive startups are also growing rapidly. Square, the POS payment processing venture, has accumulated more than 4M users since 2009. According to Accenture, half of its North American users would be open to banking with the company if they could. Sources: Accenture, “The Everyday Bank,” 2014 http://www.accenture.com/microsite/everydaybank/Documents/media/Accenture-EverydayBank-NewVisionforDigitalAge.pdf Square is a payment card reader that accepts magstripe payment cards. Businesses that use Square Wallet can offer their customers a hands-free payment option. Square’s Wallet app uses geo-location to determine that a customer has entered a store. If users have pre-authorized the merchant, they can pay hands-free by just saying their name to the cashier.
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All Rights Reserved. Confidential Noteworthy Players: Email-Based P2P (Google Wallet & Square Cash) 37 Google Wallet is integrated with Gmail so that users can send payments as an email attachment to a Gmail message as they would with a document. Funds are then drawn from their Google Wallet account. Square Cash also enables users to send and receive money via any email address by linking a card to their email address. Sources: “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014. http://www.pcworld.com/article/2038864/google-wallet-makes- payments-possible-through-gmail.html; http://www.paymentssource.com/news/square-launches-square-cash-email-based-p2p-3015741-1.html To use Square Cash, senders put the dollar amount they wish to send in the subject line of an email and copy “cash@square.com” as an additional recipient. The sender then receives an enrollment email asking for a valid debit card number.
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All Rights Reserved. Confidential Noteworthy Players: Loop (Magnetic Secure Transmission) 38 Loop is a new mobile wallet solution that communicates with 90% of existing POS terminals via Magnetic Secure Transmission (MST). The technology allows consumers to pay via phone at any POS without requiring merchants to upgrade their hardware. Instead, consumers use a dongle plugged into their smartphone or a special case that is held close to the magnetic stripe reader at checkout. Source: “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014. http://loopishere.com/wp-content/uploads/2013/12/Loop-Closes- Series-A-Press-Release1.pdf; http://techcrunch.com/2013/10/19/loop-the-future-of-mobile-payments-or-a-temporary-fix/; Loop Overcomes Key Barriers to Adoption: How Consumers Load and Use Cards Unlike other mobile wallet solutions that require a special dedicated transaction network, Loop uses MST to emulate the same signal as when a magstripe card is swiped through a traditional POS card reader.
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All Rights Reserved. Confidential Noteworthy Players: Mobexo (Payments via QR Code) 39 Mobexo’s mobile app generates QR codes and displays them on users’ smartphones. Users can scan the codes to pay and to be paid. Funds are then immediately available in the users’ Mobexo account after the transfer. Source: “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014.
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All Rights Reserved. Confidential Noteworthy Players: Barclaycard’s bPay Band (Wearable Payments) 40 Source: www.nfcworld.com/2014/06/11/329615/barclaycard-offer-contactless-wristbands-combine-payments-ticketing-offers/; www.totalpayments.org/2014/07/14/barclays-bpay-band-brings-contactless-future-closer/#sthash.MR7VigDW.dpbs “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014. Barclaycard is to make contactless payment wristbands available to anyone with a UK bank account or credit card next year. The wristbands were tested this summer at several summer festivals in London. Wearers received fast-track entry to the events and used their bPay Band to make contactless payments and access exclusive offers. The reloadable bands will be free with no fees, providing users access to a range of special offers as well as the ability to make payments of up to £20 at any merchant equipped with a contactless POS terminal.
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All Rights Reserved. Confidential Coin is a single solution that simplifies several cards into one. In only three days, the payment solution blew past its planned pre-order goal of $50,000 in 40 minutes, a testament to the desire for consumers to leave their plastic behind. Sources: http://thefinancialbrand.com/35187/coin-square-dawn-new-era-ewallets-digital-payments/; http://techcrunch.com/2013/11/14/coin-the-electronic-credit- card-reaches-its-pre-order-goal-in-40-minutes/; http://techcrunch.com/2013/11/14/coin-the-electronic-credit-card-reaches-its-pre-order-goal-in-40-minutes/ 41 Noteworthy Players: Coin 1. Upon purchase, users receive a Coin card and card-swipe dongle 2. User connects card-swipe dongle to a smartphone or tablet 3. Users take photos of their cards, swiping them through the dongle and uploading them to the Coin mobile app 4. Multiple card data is stored on the Coin card 5. To pay, consumers browse through stored cards on their Coin, select one and swipe How Coin Works Consumers’ overwhelming response to Coin demonstrates how close the banking industry is to a nearly all-digital payments ecosystem.
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All Rights Reserved. Confidential Noteworthy Players: Apple 42 Sources: http://www.forbes.com/pictures/fkmm45kemh/apply-pay/; http://www.forbes.com/sites/laurashin/2014/09/09/why-apply-pay-could-finally-get-us-to-shop- with-our-phones/; http://www.americanbanker.com/issues/179_175/why-banks-are-buying-in-to-apple-pay-1069868-1.html Apple Pay, a touch-to-pay system built on NFC technology, is the first program to use a tokenization system on a widespread basis. Perceived as a company that creates stellar customer experiences that drive new consumer behaviors, Apple Pay’s intuitive user experience and enhanced security features make the new platform extremely attractive. . To mitigate fraud, Apple Pay includes an NFC antenna across the top of the phone, the TouchID fingerprint scanner and a secure element in the device to store tokens that represent consumer card credentials.
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All Rights Reserved. Confidential Looking Ahead: Digital Currencies 43 Sources: “Money 3.0: Payments Go Mobile,” Online Banking Report, Number 225, February 2014. http://marketingland.com/5-key-trends-mobilelocation-based- marketing-88394; http://www.deloitte.com/assets/DcomUnitedStates/Local%20Assets/Documents/FSI/us_fsi_BitcointheNewGoldRush_031814.pdf Number of Bitcoin Wallets by Wallet Provider, 4/14 The fact that ~5MM Bitcoin wallets (+8X Y/Y) exist proves extraordinary interest in crypto-currencies. Virtual online currencies offer value in place of parts of the payments ecosystem that are excessively costly, inconvenient and risky. As these currencies emerge, traditional banks may see an increased threat, forcing them to innovate to retain their traditional dominance. Market Cap of the Top-20 Crypto-Currencies There are estimated to be more than 140 crypto-currencies. Bitcoin is by far the largest, with a total value of more than $10B. Ripple, launched in early 2013, has been gaining a fast following—tripling in value this year.
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All Rights Reserved. Confidential The New Age of Social Media
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All Rights Reserved. Confidential The Balance of “Value” Tips Back in Favor of the Consumer 45 Customers are assessing bank brands with a social lens that now lets them reject bank policies, or the entire brand, based on recommendations from the “crowd.” In the age of social media, the balance of “value” has tipped back in favor of the consumer and has weakened the value proposition of the average bank brand. Mobile Time Spent Source: comScore Mobile Metrix, U.S. March 2013 U.S. desktop users spend an average of around 6 hours every month on Facebook U.S. mobile users spend an average of around 14 hours every month on Facebook Source: King, Brett. Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. Wiley; 1 edition (December 26, 2012).
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All Rights Reserved. Confidential Positive Dialogue Leads to Advocacy and Referrals 0.3% 4.0% 5.9% 8.0% 9.3% 9.9% 16.6% 17.6% Consumer Information/Review Websites Family/Friend Advice Branch (Spoke to Teller) Phone (Spoke to Customer Service Rep) Visiting Bank's Website Newspaper/Magazine Article Written Material (Brochure) Social Media (Facebook, Twitter) Lift in % Conversion % All Respondents 5% 18% 6% 16% 12% 26% 7% 11% Customers Who Research First More Likely to Convert, But Not All Sources Have Equal Impact Source: 2013 Gallup U.S. Retail Banking Survey Consumers today are using social media to follow and engage in dialogue about brands. Positive dialogue has been found to lead to advocacy, which in turn can lead to referrals. According to research from Gallup, social media was the most effective channel used by customers that led to a sales conversion. 46
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All Rights Reserved. Confidential Banks Increase Social Media Initiatives 47 Social media has evolved into a forum where people seek news, make shopping decisions, share dreams, ask for service and talk about brands. As a result, banks are seeking to gather information and increase engagement with these consumers, who now demand quick response to issues in real-time, by increasing staff and rolling out various social media initiatives. Sources: King, Brett. Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. Wiley; 1 edition (December 26, 2012); "Wells Fargo Sets up War Room to Monitor Social Media Sites" Bank Technology News (03/28/14) Wisniewski, Mary; “Wells Fargo Launches Web Magazine, Seeks 'Deeper' Ties with Customers” American Banker (03/11/14) Wisniewski, Mary. More banks are launching new command centers with enhanced monitoring tools where employees: Monitor social posts Engage with consumers on trending topics Respond to queries and complaints Gather customer data
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All Rights Reserved. Confidential 48 The Core Social Media Team Increases in Size Number of full-time equivalent employees that make up social media team Having the Appropriate Infrastructure in Place is Paramount to Surviving Social Disruption Average Size of a Corporate Social Media Team While control may have shifted to consumers, organizations that respond thoughtfully can level the playing field. In order to support bidirectional conversation at scale, institutions need to be equipped with a social infrastructure. Sources: http://www.slideshare.net/Altimeter; "Wells Fargo Sets up War Room to Monitor Social Media Sites" Bank Technology News (03/28/14) Wisniewski, Mary; “Wells Fargo Launches Web Magazine, Seeks 'Deeper' Ties with Customers” American Banker (03/11/14) Wisniewski, Mary; Source: King, Brett. Bank 3.0: Why Banking Is No Longer Somewhere You Go But Something You Do. Wiley; 1 edition (December 26, 2012). Social media requires a dedicated engagement team to integrate the channel across the business. Since most banks create “silos,” this is particularly difficult and remains a challenge for banks. Role of Social Media Team Members
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All Rights Reserved. Confidential Expanding the Role of Social Media Beyond Marketing While the industry is beginning to leverage social media as an effective customer engagement tool, the current usage of social media is heavily focused on outbound marketing. Instead, banks should view it as a tool for personal and relevant interactions with customers. 49 Current Usage of Social Media by Size of Institutions Source: “Trends in Retail Banking Channels: Opportunities in a Changing Landscape,” Capgemini, 2013; “Top Trends in Retail Banking 2013,” Celent December, 2012 Only 17% of large banks integrate social media inputs with call center activities and only 10% track and manage interactions in CRM. The contact center is especially important for building customer engagement for the virtual customer, essentially becoming the retail bank’s largest and fastest-growing branch.
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All Rights Reserved. Confidential Servicing Customers via Social Media Channels 50 Customers today expect to be able to reach their bank regarding service issues via social media and get a response immediately. Many banks fall short in this area, not providing adequate support for 24/7 social channel access. Social media has proven to be an effective grievance redressal and retention tool by acting as a low-cost channel to host conversations, provide service and identify customer dissatisfaction. Source: “Trends in Retail Banking Channels: Opportunities in a Changing Landscape,” Capgemini, 2013; https://twitter.com/BofA_Help Bank of America’s Twitter CRM initiative tracks the customer service interactions via Twitter, automatically creating a service case whenever something is said on Twitter. Support agents then attach relevant information in a reply tweet that gets logged and tracked.
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All Rights Reserved. Confidential The Importance of Positive Social Dialogue 51 Consumers are using social media to follow and engage in dialogue about brands both positively and negatively. If a brand performs well, this can lead to advocacy, which in turn can lead to referrals and new business. This positive dialogue becomes critical in restoring trust in an individual bank’s brand. Sources: “Trends in Retail Banking Channels: Opportunities in a Changing Landscape,” Capgemini, 2013; http://anderspink.com/portfolio-items/7-content- marketing-lessons-from-american-express-open-forum/ American Express uses social media to drive brand impression and be at the center of conversations by creating a persona of the bank which the customer can connect with. OPEN Forum, American Express’ online community to connect businesses, has more than 190k Twitter followers and nearly 90% of its traffic is generated organically. Because customers place greater faith in messages they receive from peers rather than traditional marketing messages, social media is an excellent tool for banks to achieve word- of-mouth publicity and improve brand recognition and affinity among customers.
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All Rights Reserved. Confidential Using Customer Dialogue to Inform Strategy 52 There is great potential for banks to use customer feedback and dialogue to make marketing and product decisions. Banks whose product development efforts leverage social media are better attuned to the needs of the customer. Sources: “Trends in Retail Banking Channels: Opportunities in a Changing Landscape,” Capgemini, 2013; “IHG and Chase Enlist their Best Customers to Create a New Credit Card,” Communispace, http://www.communispace.com/ihg-chase-credit-card-co-creation-case-study/ LEFT: A view of the card’s community homepage, where Chase had ongoing conversations with customers in real-time, focusing on product development. ABOVE: A print ad influenced by Priority Club Rewards community members. Chase used social media to create a more innovative product that reflected real-time consumer demand. An online community of high-net-worth customers came together to design Chase’s Priority Club Rewards Card. Through a customer co-creation approach, banks can grow their business while instilling customer loyalty with their most desirable customers.
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All Rights Reserved. Confidential Integrating Payments Across Social Networks 53 Sources: “Is Twitter On The Verge Of Entering Payments?" ISO & Agent Weekly (07/10/14). http://www.paymentssource.com/news/tippercoin-mixes-digital-currency-with-twitter-but-obstacles-loom-3016444-1.html Social-enabled payments are another way companies are changing the business. While Facebook already enables payments, companies like Chirpify, Dwolla and American Express have experienced some success with Twitter, and new entrants like TipperCoin are testing Twitter's potential for working with digital currency. TipperCoin allows users to send Bitcoins by Tweeting the hashtag #TipperCoin. Chirpify established payments through hashtags, enabling payments on Twitter, Facebook and Instagram. American Express uses searchable hashtags as triggers for initiating purchases. Dwolla users can send or receive cash via social networks, email or location. Facebook’s reloadable gift card is redeemable at several national retailers.
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All Rights Reserved. Confidential Social Networks and Online Platforms Change the Business 54 Online platforms connect those looking for and offering financial resources, cutting out intermediaries and lowering costs. Whether in need of investments or capital, consumers have the ability to use online platforms to connect with peers who will offer them resources more quickly with fewer strings attached. In the process, disruptors are resetting consumer expectations and changing the businesses. Source: Forrester, “Digital Disruption Hits Retail Financial Services” (July 2014) Crowdfunding and online lending platforms like Lending Club match entrepreneurs and other borrowers with potential investors. Social investing platforms like eToro let mainstream investors copy the stock- picking strategies of talented individuals. Currency marketplaces like TransferWise let people exchange currencies at a lower cost than doing so through a bank.
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All Rights Reserved. Confidential Customer Engagement
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All Rights Reserved. Confidential Digital Banking Customers More Profitable and Engaged 56 According to data from Digital Insight, highly engaged customers that use multiple digital banking services are 51% more profitable than customers who do not actively utilize online or mobile banking and are more likely to have higher account ownership, balances, retention and debit card purchases. Source: http://www.banking2020.com/2014/07/29/are-online-bankers-more-profitable/#.U9gT5fldX4Y Total Consumer Balance
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All Rights Reserved. Confidential Creating Value Beyond Transactions 57 In a digital world, winning and retaining customers hinges on creating value for them that enhances the convenience and quality of their everyday lives beyond mere transactions. This requires a shift in strategic focus from being a provider of financial products and services to being a provider of solutions. Banks must learn to play a greater role not just at the moment of transactions, but before and afterwards as well. Union Bank’s Yuby app, designed to teach children financial literacy, exemplifies this approach as it creates value in unique ways that increase customer touches and deepen connections. Sources: Accenture, “The Everyday Bank,” 2014 http://www.americanbanker.com/bankthink/in-courting-millennials-think-transactions-before-deposits-1068195- 1.html ; http://www.accenture.com/microsite/everydaybank/Documents/media/Accenture-EverydayBank-NewVisionforDigitalAge.pdf
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All Rights Reserved. Confidential Leveraging Data for More Powerful Marketing 58 Banks today are in a unique position to tap mobile data and leverage a holistic view of the customer to deliver segmented applications based on behavior and location. This furthers the bank’s ability to use targeted campaigns based on consumer behavior to offer the right services at the right time, including coupons, rewards and offers. Sources: http://www.mobilemarketer.com/cms/news/banking-payments/9851.html; Forrester Research Interactive Marketing Forecast By Industry, 2011 To 2016 (US). Instead of simply enabling customers to save money and pay for things, banks have the potential to combine their vast transactional data with new digital tools to help customers make decisions on what to buy and where and when to buy it.
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All Rights Reserved. Confidential Using Data to Gain Competitive Advantage 59 Banks already have in place the infrastructure, processes and procedures to manage security and privacy for their own customers. By creating boundaries and keeping careful watch on data usage behaviors, banks can use data to improve customers’ experiences. Not to mention, consumers trust their bank more than anyone with their data. Source: http://bankingblog.accenture.com/tag/everyday-bank/ According to Accenture’s CMT Digital Consumer Study 2014, consumers believe banks are the most trustworthy recipients of personal data.
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All Rights Reserved. Confidential Meeting Changing Consumer Expectations Sources: http://www.citigroup.com/citi/news/2014/140521a.html;http://www.bankinnovation.net/2014/05/video-citibank-adds-quick-balance-feature-to-its-app/; https://www.javelinstrategy.com/news/1478/92/Mobile-Device-Boom-Led-to-74-000-New-Mobile-Bankers-per-Day-in-2013/d,pressRoomDetail Efficiency and simplicity play a large part in customer engagement. As a result, financial institutions are rising to the challenge to meet changing consumer expectations and cater to the growing lack of consumer patience and the seeming need for instantaneous gratification and simplicity. Citibank’s Mobile Snapshot enables customers to view credit card balances, deposit balances and recent transactions without having to log into their accounts. Huntington’s Quick Balance provides quick access to account information by opening the app. U.S. Bank has been testing out voice recognition software that serves as a password. Given the high level of mobile bankers that use their phones to check balances and review recent transactions, a few innovative banks are driving the popularity of mobile banking further by simplifying the mobile login process. Capital One SureSwipe lets users log into their apps by recognizing swipe patterns. 60
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All Rights Reserved. Confidential Seamless Integration Across All Interactions Sources: http://www.businesswire.com/news/home/20130409005152/en/Bank-America-Khan-Academy-Promote-Money-Habits http://www.huffingtonpost.com/arianna-huffington/huffpost-financial-education_b_4284273.html 61 Ads have been seen in multiple channels, including links to videos. Bank of America partnered with Khan Academy to create the online program, “Better Money Habits,” to help educate consumers on how to manage and avoid debt. Consumers can learn at their own pace via online videos, or in-person at a financial workshop. Mobile Ad It launched “HuffPost Financial Education,” a hub of stories, advice and tools to help readers make informed financial decisions. When developing and executing a multichannel strategy, it must align with channel capabilities, customer preferences and the bank’s overall strategy and brand promise. Bank of America is one bank that has focused on embedding themselves in daily life by creating a seamless integration of the customer experience across multiple touch-points. Display Ad Product Bank of America took the initiative a step further by launching its “Better Balance Rewards” Card, which rewards customers for responsible spending habits. Videos Online Program
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All Rights Reserved. Confidential Merkle’s POV
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All Rights Reserved. Confidential Merkle’s POV 63 This will require a massive refocus on honing skill sets, intellectual property, experience, technology and data Organizations will get back to basics in customer segmentation, have a better understanding of customer behavior and adjust value propositions accordingly It will require capabilities for inbound and outbound engagement and consolidation of the customer view among all offline and online touch points Organizations will be able to understand customer value, maximize customer interactions and better manage customer relationships Customers will experience a seamless delivery as they move fluidly on their journey through the consideration and buying process To facilitate a true 1:1 approach to customer engagement, banks must rapidly respond by embracing new capabilities that are driven by more customer centric marketing strategies.
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All Rights Reserved. Confidential One main area of change within CRM technology is the growing need to run and measure complex, integrated online and offline campaigns. These technologies are able to operate as “eco-systems” where data and highly-specialized services are processed against the goals of the campaign. Technology Enabled, Data Driven Customer Relationship Marketing 64 Decisioning Platforms Ad Serving & Tagging Data Management Platforms Attribution Platforms Matching Platforms CRM Platforms Marketing Customer Data Warehouse Audience Platforms Platform Marketer Stack Name & address 3rd party cookie 3rd party segment Context 1st party cookie Device ID Geo-location Social ID / handle Execution Currencies Management of this marketing technology eco- system (or “stack”), will be uniquely configured for every organization and become a core enabler to 1:1 marketing.
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All Rights Reserved. Confidential The Platform Marketer 65 To support this new environment, significant and rapid evolution in the mix of talent and skills will be required. Not only will the future marketer need to know financial services, but they also must command a host of other specialties, from advertising platforms to econometric modeling. We refer to this mix of advanced capabilities as the “Platform Marketer” and see these skills as requisites to the effective pursuit of business goals. Identity Management Audience Management Customer Privacy& Compliance Platforms Utilization Media Optimization Channel Optimization Measurement & Attribution Marketing Technology Stack Organization Platform Data Platform Execution Platform Enablers Platform Marketing Competency Matrix
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All Rights Reserved. Confidential Requirements for Success Regardless of their size, banking institutions must take several important steps in order to embrace and evolve to a much higher degree of customer centricity. 66 • Commit strategically and financially to having a customer centric approach • Requires marketing, sales and customer engagement be highly integrated • Requires a material shift in strategy, technology platform and organizational structure • Commitment to a comprehensive assessment planning exercise that involves the entire enterprise, not just marketing 1 - Forge a plan for organizational change • Identify engagement opportunities in customer lifecycle to divert lost revenue/customer attrition • Take a holistic technology approach and leverage multiple data streams 2 - Identify moments of truth across media and inbound channels • Manage both prospect and customer engagements across lines of business and channels based on known and anticipated needs • In order to align these efforts, there needs to be one owner of these experiences • Single ownership creates consistency and accountability and allows for a focus on customers versus functions, channels and products 3 - Employ a singular resource that owns integrated engagement • Payments traditionally involved two parties and was a relationship entry point for banks • Today, payments consist of digital representations that involve multiple parties • Understanding new dynamics becomes a key competitive advantage 4 - Adapt internal IT infrastructure to the digital infrastructure • Due to the complexity of technology eco-systems, it is imperative to identify/track issues and seek speedy resolution 5- Prepare for unforeseen changes that may impact roadmap implementation
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All Rights Reserved. Confidential Learn More To be successful, marketers must align their business strategies, technology infrastructure, internal organization and specialized agency partner resources against key business goals. When that alignment is achieved and optimized, marketing is delivering on its value proposition to the entire organization. To learn more, request a copy of our new book or watch our webinar: 2014 Marketing Imperatives: The Rise of the Platform Marketer 67
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All Rights Reserved. Confidential Thank You! merkleinc.com Alison Berman Senior Market Research Manager aberman@merkleinc.com MERKLE, Inc. www.merkleinc.com Twitter @merkleCRM
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