We look at changes in the banking landscape and the advent of a new breed of banking offering.

1. Disruptive Innovation in
consumer banking
channels

2. Banking used to be…

3. But things change…
Even Monopoly is electronic now

4. Defining your future
depends on knowing
and delivering your
customers‟ needs

5. Do you understand the needs of the
Generation-Y Persona?
Do you know how to reach them?
3.54bn
people
are under
30 today
They
decide
how and
when they
want to
interact
They want
convenience and
simplicity

6. How do you connect with Gen-Y?
Do you
have a Do you
channel have a
strategy to plan to
provide reach
services on them?
their terms?
Is your
proposition Are you
going to capture findable?
their interest?

7. In the UK 27% of adults and almost 47%
of teenagers now own a smartphone
59% of these
acquired one in
the last year!
The growth in digital
channels and the
prolific use of
Smartphones is
changing how
consumers will:
• Buy goods
• Make payments
• Gain access to
services
• Interact with your
Financial institutions

8. So we need to think beyond the branch.
And channels need to be connected.
Think „Martini Banking‟.
Anyplace. Anywhere. Anytime.
Customers are demanding a mix of channels
and greater two way interaction from their
financial services provider. People call this
„channel banking‟ or „multichannel banking‟. Its
definition is inconsistent but it depends on
consistency of brand and customer experience
which means channel integration. This is tricky
when what consumers really want is for banking
to be simpler.

9. Conflicting multichannel definitions
“True multichannel banking provides a rich set of products and services to customers
in a seamless and always available fashion across all channels”
McKinsey Consulting, Banking on Multichannel, 2010
“The multi-product, multi-channel environment… presents a number of challenges. The first
is an unfocused approach to delivering products and services to the market. Banks can
easily fall into the “3E trap” of trying to be Everything to Everyone, Everywhere. ”
World Retail Banking Report, Cap Gemini, Unicredit, EFMA 2011
“One of the things that continues to surprise me about many banks’ multi-channel
strategies is how little most banks have integrated their ATMs into those strategies.”
Benjamin Ensor, Forrester Research, 2010
“the ATM is not a channel as such, but call centre, internet and mobile are channels”
Chris Skinner, The Multichannel Myth, FSClub Blog, 2009

10. By the way, we‟ve always thought
multi-channel banking means…
Multi-·chan·nel bank·ing /ˈMul ˈ ˈ
ti Chanl ˈbaNGkiNG/ n.
def:
“Creating a consistent and rewarding customer
experience by offering an integrated multi-channel mix
with specific products and services for each channel,
delivered according to the way people want to interact
on that channel”
This is the essence of “Connected-Generation Banking”.

11. How do you offer a multi-channel banking
experience to your customers?
Good multi-channel Banking is not about making the
“branch” available across different channels
1. The banking experience must be customer-centric, offering
relevant, simple, and consistent services as consumers
move from channel to channel.
2. Make both your brand and the quality of each customer’s
experience consistent across all channels through multi-
channel integration
3. Each delivery channel offering should be built from the
ground up maximizing its particular interaction capabilities
4. Offer channel-specific services that consumers actually
want to use on that channel (in a way they want to use
them).

12. The end of „Casino Banking‟
“retail banking
activities should
be structurally
separated, by a
ring-fence, from
wholesale and
investment
banking activities”
- Sir John Vickers

13. Consumers want a “simple” banking experience
(which is more difficult to achieve with complex legacy systems)
Consider:
1. How many steps does it
take to apply for a loan?
2. Can your consumers
identify their needs on
the homepage of your
website?
3. Is there a digital channel
for speedy customer
service?
4. Is the the right mix of
services available on the
right channels without
making the experience
complex?

14. Remember bank customers are regular
consumers, who are used to interacting
seamlessly with sophisticated retailers across
channels

15. New entrants are disrupting the landscape
1. Alternative Models
Clear alternatives are offering
simpler services, and bank-as-
retailer convenience services
2. Tailored Product Selection
Sourcing off-balance sheet
and highly regulated product
from “other” manufacturers
3. New Banks with out legacy
processes can provide
simpler and customer
centric experience for
consumers
3. The gate is open for more
E-money and Payment
services regulation making
market entry easier for this
type of new transaction
centric financial services

16. It‟s a profitable market…
Tesco‟s banking division made a £102m pre-tax
profit in the first half of 2010 - up 92%

17. And a new opportunity is dawning…
1
Focused purely on consumers and retail banking
transactions
2
Channel-specific solutions, which may be
integrated but are not the same core stuff just
rebadged over a new technology protocol
3
Simplified service offerings utilizing retailing
principles and social media, when and where
consumers want

18. Want to know more? Let‟s talk…
bayberryconsult.com
About Bayberry Bayberry Consulting
Bayberry is a business strategy and Alexandra House, The Sweepstakes
consulting firm. We specialise in Ballsbridge
banking and payments, hi-tech and Dublin 4
B2B marketing, and company growth. Ireland
What makes us different is our focus Tel: + 353 1 2827103
on turning the ideas we create into www.bayberryconsult.com
results for your company. info@bayberryconsult.com
twitter: @bayberryconsult