Engagement Banking Strategy Backbase Webinar Series January 27, 2010

Engagement Banking Strategy Backbase Webinar Series

January 27, 2010

What is Engagement Banking?

For further reading, download our white paper:The Future of Banking is Engagement Banking

http://banking.backbase.com/adv/futureofbanking-whitepaper.php?src=slideshare-001

© 2011 SapientNitro

Today…

Thanks:


Customer Intimacy

Scaleand

EfficientOperations


Customer Intimacy

Scaleand

EfficientOperations

Technology


Customer Intimacy

Scaleand

EfficientOperations

Engagement BankingTechnologies


Engagement Banking

is a new marketing, sales and service model that

deploys Technology to achieve both

Customer Intimacy and Scale


1. Your ability to collect customer data, turn that data into insight and effectively disseminate that insight

2. The appropriate channels that align with a customer’s convenient behavioral patterns

3. A strong user experience design


Banking

Technology Marketing

Customer Experience

Business Environment

Consumer Behavior

EB

Engagement Banking Market Framework

How are customers behaving today?


Customers want Digital

Most consumers now touch their bank digitally, and outside the branch network

Internet Banking 36%

ATM 15%

Mobile 3%

Digital54%

Source: American Banker Association, Preferred banking method survey, September 2010


“Digital” will increasingly mean “mobile”

Source: American Banker, Javelin Research, October 2009

© 2011 SapientNitrotechny.com Image: http://www.installations.org

Customers rarely set foot into a branch.


Cash from the ATM… the one thing they can’t do digitally

But only for a few more months.


NFC

So, what do consumers want?


Consumers want…

Personalized information and content

To connect with the brands they custom, and be valued for it

To have access to their financial information and banking services, 24/7, across multiple channels

To have a problem resolved quickly and for the first time


The Four Pillars of Engagement Banking

1. Next Generation Online Banking Experience

2. Multi-channel Client Experience

3. Digital Customer Acquisition

4. Digital Community Development

60% of checking accounts are likely to become unprofitable.The Boston Consulting Group, 2010

Profits are generated in three ways

1. Revenue expansion

2. Increasing asset productivity

3. Cost reduction

Engagement Banking powers all three levers

What an Engagement Bank

Looks Like


Traditional banks are organized around silos

Enterprise Services

Corporate Finance Treasury Payments

Operations Fraud / AML Technology

Product

Customer Management

Onboarding Marketing

Strategy Analytics

Retail / Branch Call Center

Alternative

ATM Online Mobile

Services

Origination Pricing

Strategy Compliance, etc.

Instruments

Deposits / Accounts Lending

Cards Wealth, etc.


Engagement Banks are channel-independent

Channels are agnostic, and supported by shared, customer-focused business services

Customer context is delivered throughout the organization

Enterprise Services

Product

Business Model Services

Customer ContextCustomer Context

Branding / Marketing

Sales Onboarding Relationship Management / Servicing Transitioning

Channels

Retail / Branch Website Mobile ATM / Kiosk Call Center

InstrumentsServices

Customers are already channel-independent

Image: peopleseconomics.com

The customer’s journey defines the experience

Engagement Banking is about reorganizing traditional banking activities to engage and empower customers through a compelling sales, product or service experience

Re-evaluationEngagementInitiationDiscovery



Triggers

Marketing and Brand.

Moments of clarity and inspiration of a financial need.

Investigation

Pre-sales.

Initial research into the benefits of a banking brand, products and services… and what the peer network says.

Image: http://jonathanbaldwin.blogspot.com


Trial

Sales activities

The customer assesses how a product or brand’s abilities meet their individual needs.

Onboarding

The traditional onboarding process.

PurchaseDecision


Manage

Gain clarity and control, and make transactions to implement change.

Understand

Make sense of what I’m doing and a plan for what to do next.

View

View your financial life. Assemble a personal balance sheet to develop a complete picture.

Evaluate

Continually evaluate how my financial solutions help with my continually changing life.


Repositioning

Identifying products that are better alternatives than what’s currently implemented

Relationship Closure

Activities to close or transfer a financial relationship, including account closure and feedback.

Standard Bank Products, Services &

Functions

Enterprise Services

Product

InstrumentsServices

Engagement Banking Business Framework


Engagement Bank

Customer-centricServices & Functions


Customer Context

Branding / Marketing Sales Onboarding Relationship Management / Servicing Transitioning

Channels


Customer Experience Framework


How to Implement Engagement Banking








Applying professional-grade data visualization techniques….

Next Generation Online Banking Experience

… can provide financial context to consumers.

© 2011 SapientNitroImage: Mint.com

PFM is really about bringing business-class reporting and

analysis down the food chain to consumers.

Next Generation Online Banking Experience

Image: Mint.com


Strong User Experience Design across every channel A design that focuses on the user experience means a different

approach to delivering financial information.

Personalization is a major trend in modern design

The most relevant and convenient information, to that person, is allowed to be surfaced and made easily accessible.

Most desired information readily available

“What’s my account balance?”

Visualization to provide context at-a-glance.“How am I doing?”

Most recent first, for fast updates…

“Did the check clear?”

Strong User Experience Design…


Source: IDEO

… across every channel


Multichannel Client Experience

SapientNitro Engagement Banking Digital Whitepaperhttp://engagementbanking.sapient.com


Digital Customer Acquisition

Real-time campaign management and adjustments, based on active tracking and monitoring of consumer behaviours

Data-driven Product Development

Data Intelligence in Customer Service and Support

Digital Community Development

Image Source: It’s a Wonderful Life, 1946

© 2011 SapientNitro Image Source: jasocal.org

Digital Community through Social Networking

Image Source: O’Reilly

Customer Intimacy at Scale


Summary

Engagement Banking Market Framework


Banking

Technology Marketing

Customer Experience

Business Environment

Consumer Behavior

EB

Standard Bank Products, Services &

Functions

Enterprise Services

Product

InstrumentsServices

Engagement Banking Business Framework


Engagement Bank

Customer-centricServices & Functions


Customer Context

Branding / Marketing Sales Onboarding Relationship Management / Servicing Transitioning

Channels


Customer Experience Framework








About SapientNitro

2009 REVENUE OF US$639MEND-TO-END SERVICE OFFERING, WITH COLLABORATIVE AND AGILE APPROACH

2009 REVENUE OF US$639MEND-TO-END SERVICE OFFERING, WITH COLLABORATIVE AND AGILE APPROACH

FOUNDED IN 1990, PUBLICLY TRADED SINCE 1996 (NASDAQ: SAPE)

HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN INDIA

35 OFFICES WORLDWIDE

FOUNDED IN 1990, PUBLICLY TRADED SINCE 1996 (NASDAQ: SAPE)

HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN INDIA

35 OFFICES WORLDWIDE

UNIQUELARGEST INDEPENDENT INTERACTIVE AGENCY IN THE WORLD, withINDUSTRY LEADING STRATEGY & TECHNOLOGY CONULTING

UNIQUELARGEST INDEPENDENT INTERACTIVE AGENCY IN THE WORLD, withINDUSTRY LEADING STRATEGY & TECHNOLOGY CONULTING


INSIGHTSExpertise in research, analytics, brand & user experience, wealth management, and global markets

IDEASIdeas born of insights. Our creative department consists of designers, writers, IAs, strategists, account managers and technologists

REALIZATIONPeople that can execute on ideas from a customer experience, operational and technical perspective supported by world class program management and collaborative approach

S

We are

Thank You

Michael DegnanEngagement Banking Lead

SapientNitro Financial Services Center of Excellence

[email protected] | @mdegnan

http://engagementbanking.sapient.com

#engagementbanking

Documents

Engagement Banking Strategy Backbase Webinar Series January 27, 2010