Once run by a few large banks, it has been taken over by smaller, more nimble and technology-driven disruptors who are putting the power back into the hands of consumers. Banks need a more customer-centric way to do business and to differentiate themselves in new ways. This report will explore the most crucial changes happening in the finance industry, and how legacy banks need to act today to be around tomorrow: CHAPTER 01 Banks need to be bolder by standing for a value or experience that differentiates them from the crowd.

1. NEXT GENERATION
OF BANKING.
CUSTOMER EXPECTATIONS ARE EVOLVING
& BANKS NEED TO KEEP UP
THE LATEST INSTALLMENT OF OUR:
Near Future Of Series

2. CONTENTS.
CONTEXT
CHAPTER 01: BANKS NEED TO BE BOLDER
- AN INCREASING IRRELEVANCE
- DIFFERENTIATE ON CUSTOMER EXPERIENCE
- THE 5 KEY EXPECTATIONS INFLUENCING
TOMORROW’S BRAND EXPERIENCE
+ BEST PRACTICES
EXPLORE YOUR OPPORTUNITIES
P 07
P 20
P 27
P 35
P 64
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3. LHBS is a marketing & innovation firm with
offices in Berlin and Copenhagen. We help
clients to understand today's emerging
customer expectations and to shape their
business offerings for tomorrow.
www.lhbs.com
Kathleen McCaffrey
Analyst at LHBS
lhbs.com | kmc@lhbs.com
Once run by a few large banks, it has been taken over by
smaller, more nimble and technology-driven disruptors
who are putting the power back into the hands of
consumers.
Banks need a more customer-centric way to do business
and to differentiate themselves in new ways.
This report will explore the most crucial changes
happening in the finance industry, and how legacy
banks need to act today to be around tomorrow:
• Banks need to be bolder by standing for a value or
experience that differentiates them from the crowd.
• Banks need to be faster by identifying and
transforming both simple & complex processes to
responsive, more customer-focused experiences.
• Banks need to be smarter by harnessing their mass of
customer data for more personalized experiences and
adapting external technologies and knowledge.
THE FINANCE INDUSTRY IS EVOLVING.INTRODUCTION.
INTRODUCTION.LHBS // NFO: NEXT GENERATION OF BANKING
- 04 -

4. BANKS NEED TO
BE BOLDER.
BANKS NEED TO
BE FASTER.
BANKS NEED TO
BE SMARTER.
CHAPTER 1 CHAPTER 2 CHAPTER 3
CONTENT.LHBS // NFO: NEXT GENERATION OF BANKING
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5. JEFF
YABUKI.
“The only thing advancing
faster than technology is
consumer expectations.
…New entrants are
redefining financial
experiences and challenging
incumbent financial
institutions by driving
technological innovation in
pursuit of meeting changing
consumer expectations.”
PRESIDENT
AND CEO,
FISERV.
CONTEXT.LHBS // NFO: NEXT GENERATION OF BANKING
- 13 -

6. 01.CHAPTER
- 18 -

7. 01.
BANKS NEED TO
BE BOLDER.
Today’s generations have choice.
One in three Millennials are willing to
switch if a better option comes their
way - and it will. Fintechs are
expanding well into the industry with
billions of dollars of VC investment.
They are not only meeting today’s
consumers’ greater expectations of
brands, but are helping them to
reimagine how banking and managing
their money could be.
Traditional banks need to compete on
customer experience, identify their key
differentiators and cut through the
noise to communicate them to their
audience.
LHBS // NFO: NEXT GENERATION OF BANKING
- 19 -

8. MILLENNIALS’ PERCEPTIONS OF THEIR BANKS.
53%
of Millennials don’t think
their bank offers anything
different than other
banks.
“I don’t see the
difference between
my bank and all the
others.”
ALL
FOUR
of the leading banks in
the US are among the 10
least loved brands by
Millennials.
Four leaders: JP Morgan Chase,
Bank of America, Citigroup & Wells
Fargo
Source: The Millennial Disruption Index
BANKS NEED TO BE BOLDER.LHBS // NFO: NEXT GENERATION OF BANKING
- 24 -

9. Source: The Millennial Disruption Index
THE TOUGH LESSON:
You don’t stand out
and 1 in 3 of (your) Millennials have said they’re
open to switching banks in the next 90 days
BANKS NEED TO BE BOLDER.LHBS // NFO: NEXT GENERATION OF BANKING
- 26 -

10. TRADITIONAL BANKS NEED TO BE
BOLDER BY DIFFERENTIATING ON
A KEY CUSTOMER EXPERIENCE.
BANKS NEED TO BE BOLDER.LHBS // NFO: NEXT GENERATION OF BANKING
- 27 -

11. Your customer’s last great experience from any
industry is their new benchmark for your business.
BANKS NEED TO BE BOLDER.LHBS // NFO: NEXT GENERATION OF BANKING
- 31 -

12. HOW CAN BANKS DIFFERENTIATE ON
CUSTOMER EXPERIENCE?
BANKS NEED TO BE BOLDERLHBS // NFO: NEXT GENERATION OF BANKING
- 34 -

13. HERE’S THE 5 KEY
SHIFTS IN EXPECTATIONS
Recent research reveals five evolving expectations of
a brand experience that today’s Millennial
generation want to see from banks:
BANKS NEED TO BE BOLDER.LHBS // NFO: NEXT GENERATION OF BANKING
- 35 -
…

14. WANT THE FULL
REPORT?
Download it here:
lhbs.com/next-generation-of-banking-01