1. Retail Banking in APAC:
Emerging Trends
Sanjoy Sen
Managing Director
Retail Banking Asia Pacific

2. Agenda
Global Outlook in Retail Banking
Key Trends in Asia Pacific
Changing Trends in Consumer Behavior
New Retail Banking Order – The Winning Formula

3. Developed world – downside potential
remains over the next 3-5 years….. Post the
Global Financial Crisis
Impact on banks post
GFC
•Deleveraging
•Sovereign debt exposure
•Social mood
In response…
•Cautious lending
•Selling off surplus assets
•Consolidation
•Re-orientation of growth

4. Developing world and frontier markets…..
will have healthier growth prospects
• Higher forecasted growth rates (5-10%)
• Healthy domestic demand
• Increase in savings
• Low levels of debt
• Relatively tightly controlled financial sectors

5. Key Trends in Asia Pacific
Agenda
Changing Trends in Consumer Behavior
Global Outlook in Retail Banking
New Retail Banking Order – The Winning Formula

6. Retail Banking Challenges in Asia Pacific
Your
Bank
Uncertainty operating
conditions
Regulatory
compliance burden
Increased
competition
Increasingly
cautious customers
Technology as enabler
& differentiator
Revenue erosion
How will Retail banks in Asia respond to these challenges?How will Retail banks in Asia respond to these challenges?

7. The Asian Century
Source: Trends in Asia Pacific Banking Trends - BCG
By 2030, Asia will account for 50% of global GDP; and Asia’s private
consumption will grow at 11% p.a..

8. Asia Pacific is the biggest and most profitable banking market, with
higher returns in developing economies
Source: Trends in Asia Pacific Banking Trends - BCG
The outlook in Asia is relatively optimistic; as
the region has weathered the storm better
than others

9. No wonder today, 20 of the top 50 global
banks are Asia Pacific
Source: Trends in Asia Pacific Banking Trends - BCG

10. Agenda
Global Outlook in Retail Banking
Key Trends in Asia Pacific
Changing Trends in Consumer Behaviour
New Retail Banking Order – The Winning Formula

11. 5 significant shifts in the Asia consumers’
behaviour
• Consumers are becoming less loyal to their financial
institutions.
• Consumers prefer to deal with a ‘local’ bank.
• Consumers are more cautious about borrowing.
• Consumers are going remote.
• Consumers seek products they understand or can easily
acquire knowledge about.

12. New Retail Banking Order – The Winning Formula
Agenda
Changing Trends in Consumer Behavior
Global Outlook in Retail Banking
Key Trends in Asia Pacific

13. Relook at your customer segmentation
i) Simplify to take out costs
ii) Customize your offerings
iii) Use multi-dimensional segmentation
9 Key
Strategies
9 key strategies to build for sustainable
advantage & strong financial performance
Redesign your channels
i) Omni-channel distribution
ii) Branch as a distribution channel
iii) Digital interactions
Redefine customer centricity
i) Build customer advocacy
ii) Customers and regulations
iii) Build a holistic loyalty system

14. Complexity
Efficiency
Simplify to take out costs – Get super efficient
to serve low value customer segments in order
to fund differentiation for high value customers
Many banks continue to spend more to serve its lowest value customers…they
need to understand the “nuts and bolts” of “cost to serve”
Many banks continue to spend more to serve its lowest value customers…they
need to understand the “nuts and bolts” of “cost to serve”

15. Customize your offerings – Craft differentiated
offerings and channels to serve high value
segments
Affluent customers need tailored offerings, specialized advice…..wrapped in a
terrific customer experience…and they don’t think that they are getting it
Affluent customers need tailored offerings, specialized advice…..wrapped in a
terrific customer experience…and they don’t think that they are getting it
Percentage of mass affluent customers in each region that demand customized
banking solutions
Source: Datamonitor’s FSCI survey 2010

16. Use multidimensional segmentation – target
your customers by developing and maintaining a
detailed understanding of needs, income,
demographics, behavior and values
Leave no customer segment unturned
Meaningful segmentation will provide banks with an understanding of the fit
between the capabilities of the bank and the requirements of current
& potential customers
Meaningful segmentation will provide banks with an understanding of the fit
between the capabilities of the bank and the requirements of current
& potential customers
Source: Cap Gemini Consulting Analysis

17. Relook at your customer segmentation
i) Simplify to take out costs
ii) Customize your offerings
iii) Use multi-dimensional segmentation
9 Key
Strategies
9 key strategies to build for sustainable
advantage & strong financial performance
Redesign your channels
i) Omni-channel distribution
ii) Branch as a distribution channel
iii) Digital interactions
Redefine customer centricity
i) Build customer advocacy
ii) Customers and regulations
iii) Build a holistic loyalty system

18. Omni-channel distribution – Redesign from
“multi channel” to “omni channel”…..for
seamless customer experience
Omni channel distribution is seamlessly integrating the customer experience
across disparate channels ….for better interaction
Omni channel distribution is seamlessly integrating the customer experience
across disparate channels ….for better interaction

19. Branch as a distribution channel – Move to
smaller branches for new customers, advice and
complex transactions
Leverage the power of branches and branch staff
in relationship building.
Leverage the power of branches and branch staff
in relationship building.

20. Digital interactions – Use mobile and digital
banking as a powerful means to build loyalty
As digital banking spreads, banks have new opportunities to create
“wow” experiences to delight customers
As digital banking spreads, banks have new opportunities to create
“wow” experiences to delight customers
Portfolio view of investments
Card spending analysis
E-Statements
Internet Banking
•View total portfolio in details and charts
•Perform banking transactions & investment transactions
•View investment risk profile
•Access latest market news, information, rates, research, etc
Mobile Banking
•Account enquiry
•Location based services for merchant offers or branch locations
•Financial news
•Credit card payment barcode
•Integrated BillMinder calendar
•Voice search and augmented reality for searching merchant
offers
•Interactive Lazy Susan game for dining offers
Account Enquiry Rate Calculator Lazy Susan game
Augmented reality BillMinder Credit Card Barcode payment

21. Relook at your customer segmentation
i) Simplify to take out costs
ii) Customize your offerings
iii) Use multi-dimensional segmentation
9 Key
Strategies
9 key strategies to build for sustainable
advantage & strong financial performance
Redesign your channels
i) Omni-channel distribution
ii) Branch as a distribution channel
iii) Digital interactions
Redefine customer centricity
i) Build customer advocacy
ii) Customers and regulations
iii) Build a holistic loyalty system

22. Build customer advocacy – Shift marketing
from “push” to “pull” and create an active
customer advocacy community
The secret to a winning advocacy strategy is to find the right people and
get them talking about the right things in the right places.
The secret to a winning advocacy strategy is to find the right people and
get them talking about the right things in the right places.

23. Customers and regulations – Use customer
excellence as an antidote to regulations
Banks who educate customers, advertise honestly and have fair pricing
….will lead to cross-buying as opposed to cross- selling
Banks who educate customers, advertise honestly and have fair pricing
….will lead to cross-buying as opposed to cross- selling

24. Build a holistic loyalty system – Move from
cross-sell to relationship deepening
Loyal customers buy more banking products, stay longer and urge
others to become customers
Loyal customers buy more banking products, stay longer and urge
others to become customers
Source: Bain Analysis

25. SUCCESSSUCCESS
Simplify
SEGM
ENTATION
SEGM
ENTATIONCUSTOMERCUSTOMER
CHANNELS
CHANNELS
Customize
Multi-dimensional
Omni-channel
Branch
Digital
Advocacy
Excellence
Loyalty
New Retail Banking Order – Winning Formula

26. The winning banks will be thoseThe winning banks will be those
who seek to serve their customers,who seek to serve their customers,
not just take their moneynot just take their money

27. Thank you