The Journey to Digital Maturity

8/9/2019 The Journey to Digital Maturity

1/18

A WBR Digital Industry Benchmark WhitepaperPresented in Conjuction with Adobe

The Journey to Digital Maturity:How Financial Institutions AreLeveraging the New Age ofDigital Solutions

June 2014

http://www.adobe.com/solutions/digital-marketing.htmlhttp://www.wbresearch.com/wbrdigital/home.aspx


2/18

2014 The Journey to Digital Maturity

Table of Contents

The expansion and evolution of the digital world has had a profound impact on theway people bank, narrowing the gap between consumers and nancial institutionsin ways never before possible. In an age where you can transfer your rent with theclick of a mouse and instantaneously deposit a check by simply taking a picture,banking branches are becoming obsolete. In this brave new world of omnichannel

banking, touch points have multiplied, marketing channels have become morediffuse, and the analytics required for campaign tracking have become highlycomplex. With consumers increasingly controlling how, when, and where theyconnect with their banks, nancial institutions are working to uncover newopportunities to improve their omnichannel capabilities and enhance the customerexperience. In other words, digital banking has become a top priority.

Financial services companies are adapting to this paradigm by adopting powerfulnew digital solutions. Tools for customer relationship management, media listening,marketing automation, and analytics have become essential to nancial institutionsliving in an omnichannel world. When embedded into business goals and processes,these solutions form the core of a company’s digital maturity.

Despite the proliferation of these dynamic digital tools, many nancial servicescompanies lack the structures and strategies to drive their businesses’ digitalmaturation. In fact, this report will show that organizational alignment is just asimportant to a company’s digital development. Furthermore, many marketers arestruggling to engage customers and prospects in more relevant channels like mobileand authenticated sites, thereby missing high-quality opportunities.

The present study evaluates the digital maturity of nancial services companies,assessing the obstacles that are inhibiting their digital development, as well as thesolutions and capabilities that are enabling it. The study also evaluates how nancialinstitutions are impacting the customer experience and how they are leveragingmobile. Although the majority of nancial institutions surveyed indicated that theyare investing in their digital capabilities, only 3% of respondents believed that theyhave reached full digital maturity. This underlines the fact that digital maturity is auid process that often involves the transformation of organizational structures andtechnology platforms. This study reects data gathered at NetFinance 2014, thepremier digital conference for nancial services.

Executive Summary ..............2

Key Findings ........................3

Research Findings

The Journey toDigital Maturity ................4

Inuencing theCustomer Experience ........7

The Next Generationof Technologiesand Solutions ...................9

Digital Payments &the Future of theMobile Wallet ............... ..12

Conclusions &Recommendations .............14

Appendices ........................15

About NetFinance .............. 15

About Adobe .............. ....... 16

About WBR/WBR Digital ....16

Register for Next Year’sNetFinance Conference ...... 17

Executive Summary

http://www.adobe.com/solutions/digital-marketing.html


3/18


3 Financial services are lagging in their pursuit ofdigital maturity, with 85% saying that they arehalfway there or further behind.

Reaching digital maturity takes more than just powerful new technologies. Infact, 43% of respondents indicated that organizational alignment or executivesponsorship are the most important factors to their advancement towarddigital maturity.

3 The digital maturation of many nancialinstitutions is being impeded by the competitionfor IT resources and fragmented data sources.65% of respondents agreed that heavy reliance on IT resources is the mainchallenge inhibiting their companies’ digital maturation. Fragmented datasources and compliance requirements were also common obstacles.

3 Many nancial services companies are missingout on signicant opportunities for conversionand engagement in the mobile space.Marketers have enhanced their ability to target, analyze, and convert publicsite trafc. But with web site trafc moving rapidly to mobile, very fewinstitutions have succeeded in extending their core capabilities to mobileapplications and mobile sites. Case in point, only 38% of survey respondentsare leveraging analytics on their mobile sites, while a mere 25% are applyinganalytics to their mobile apps.

3 Technology plays a critical role in digitalmarketing. However, the proliferation ofsolutions providers has made nding andimplementing the proper capabilities moreimportant than ever.Faced with an abundance of choice, many companies are choosing to buydigital marketing solutions or build them in partnership with a 3rd-party,rather than build the solution in-house. Financial institutions are prioritizingcross-channel campaign management and responsive design in the shortrun, although 43% of respondents already describe their digital marketingprograms as excellent.

3 Although the mobile wallet presents atremendous opportunity to better serveconsumers, most nancial institutions are notyet comfortable with the technology.As a result, the majority of nancial services companies only offer bill payment.While many companies agree that a clear leading technology and improvedretailer support are necessary to make mobile wallet offerings more feasible,82% believe that there is enough consumer interest to justify these investments.

Key Findings



4/18


The Journey To Digital Maturity

Financial institutions are lagging behind intheir pursuit of digital maturity

1% Haven’t left the gate

31% Just getting started 53% Halfway there

of respondentsare halfway todigital maturity

85%of respondentsare halfway to

digital maturity, or further behind.

“[I’m] surprised to see half of respondents say they arehalfway there since the space changes weekly/monthly interms of new ways to interact and engage with customersthrough digital (even what we mean when we say digitalchanges so frequently).”

- Brad Leimer, VP Digital Strategy Mechanics Bank

Where is your company in its journey to digital maturity?

12% We can see the nish line

3% We are at our end stage



5/18


65% Signicant reliance on IT resources

60% Fragmented data sources

48% Compliance

37% Inability to personalizecustomer experiences

43% Organizational alignmentand/or executive sponsorship

20% Single view of the customer /unied customer prole

16% Multichannel analytics –combine online and ofine data

8% Cross- channel campaignmanagement

6% Efcient content managementand deployment

5% Personalization / 1- to-1 targetedmessaging on web and mobilesites

1% Solution functionality likePersonal Financial Management

Despite thegrowing emphasison analyticsand solutions,organizationalalignment remainsthe dominantdriver of digitalmaturity.

What are the obstaclesslowing down your ability

to mature digitally?

Technology and data constraints are inhibitingdigital development

Digital development requires organizationaltransformation

28% Privacy and data security

25% Lack of organizational comfortwith cloud- based solutions

12% Incompatible marketing solutions

5% No obstacles

The reliance on ITresources (65%)and fragmenteddata (60%) were

clearly the twomost signicantbarriers to digitalmaturity cited byrespondents.

said organizationalalignment and executivesponsorship

43%Which of the

following has thebiggest impact onthe advancementof your company’sdigital maturity?

There is little doubt that digital strategy has become a central goal for nancialinstitutions, but the corporate structures and technologies required for this paradigmshift are often disruptive. The ndings of this study suggest that organizationalalignment and company culture are just as important to digital transformation as newtechnology platforms. Organizational enhancements, such as the consolidation ofdigital functions under a single leader and the improved alignment of digital objectivesand performance metrics, will form the core of a digitally enabled business.



6/18


These results

contrast with lastyear’s study, inwhich respondentscited new accountacquisition as theirtop marketingpriority.

An important shift is taking place from marketing as a pure direct response acquisitionengine to a more experiential tool aimed at deepening relationships with customersand driving retention. More than half of those surveyed will be focusing their digitalmarketing on increasing customer retention (55%) and increasing new account

volume (53%). Conversely, less than a third of respondents reported that theirbusinesses would be focusing their digital activities on increasing new account quality(31%) or increasing assets or deposits (30%).

55% Increase customer retention

53% Increase new account volume

47% Increase product penetration

Where will your company be focusingits digital marketing activities in the

next 12 to 18 months?

40% Increase lead generation

31% Increase new account quality

30% Increase assets or deposits

Digital marketers are focusing on retention andaccount volume



7/18


42% Control over the end- to-end customer experience

23% Control over the digital,but not direct, customerexperience

18% Control over all directexperiences (e.g. email,direct mail, etc.)

9% None

8% Control over the prospectexperience only

of respondentsstated that their

companies havefull control

Only 42% ofrespondentsstated that theircompanies havefull control overthe end-to-end customerexperience.

What level ofcontrol does

your companycurrently have

over the customerexperience?

Inuencing the CustomerExperience

Most respondents feel that their companies donot have full control over end-to-end customerexperiences

42%

Despite the fact that creating consistent, high-quality customer experiences is aprime objective for the nancial services industry, the majority of respondents reportthey only have limited control over the customer experience. The fact that only 42%of respondents stated that their companies have full control over the end-to-endcustomer experience clearly indicates that the nancial services sector must accelerateits digital development.



8/18


88% Public site

77% Email and/or direct mail

68% Mobile sites and applications

58% Social

Which marketing channelsdo you rely on to impactthe customer experience?

Marketers relying on a multitude of channels toimpact customer experience

56% Search

56% Outbound and inbound calls to call center

55% Private or authenticated sites

35% Third-party display ads

More than halfor respondentsutilize at least

7 differentchannels toimpact customerexperiences

Given the plethora of channels through which people can interact withtheir banks, marketers must understand where customers and prospects arespending the most time. Many existing customers (especially of retail banks) areprimarily interacting with their banks through mobile applications or private orauthenticated sites. This in turn means that marketers and digital channel ownersshould be emphasizing these channels, perhaps even more so than the public site.

Just like in lastyear’s report,company websiteswere citedas customers’primary source ofinformation.

Company websites continue to be thedominant source of information for customers

54% Visiting our website

32% Email

6% Web search

What is the primary channelthrough which customers are

receiving information from you?

4% Direct mail

1% Social media

1% Webinars



9/18


As in last year’sreport, CRMsystems were themost commonsolution. Emailservice providers

jumped from thirdin 2013 to thesecond this year.

The Next Generation ofMarketing Technologies &SolutionsFinancial services companies are utilizing a wide varietyof digital solutions

65% CRM

65% Email service provider

54% Paid analysis (not Google)

51% Marketing database

What types of solutions andpartners are you currently using?

49% Free Google analytics

47% Social and media listening software

40% Sales/transactional database

34% Marketing automation



10/18


1 Highest priority

2

38% Buy

29% Build via 3rd-party

20% Build in-house

12% Not looking to add solutions

88% ofrespondents arelooking to adddigital solutions,with 38% planningto buy them.

What are your technology priorities for marketing capabilities?

1 2 3 4 5

Cross-channel campaign management isbecoming a priority

Most companies are looking to add digitalsolutions, with many planning to buy thosesolutions

Cross-channelcampaignmanagementtopped the listof marketingtechnologypriorities.

Cross-channel campaignmanagement including EM,DM, Phone, Web and Social

Content management andresponsive design

Integrating data for a singleview of the customer

Personalization via1-to-1 targeting acrossdigital channels

Multichannel analytics forattribution

3

4

5 Lowest priority

plan tobuy digitalmarketingsolutions

38%If your companyis looking to add

solutions to supportyour digital marketing,

are you looking tobuild or buy those

solutions?

As this report has shown, consumers are interacting with nancial institutionsacross channels almost at will. Thus, it is no surprise that marketers’ top priority iscross-channel campaign management, which enables them to engage consumersconsistently and relevantly across channels.

29%

26%

22%

15%

10%

19%

21%

11%

24%

24%

18%

20%

23%

13%

27%

19%

8%

27%

24%

21%

15%

25%

17%

24%

18%



11/18


12/18


Most nancialinstitutions aremissing signicantopportunities todrive conversionand engagementon mobile, wheremore customers arespending their time.

Financial services must accelerate theiroptimization of mobile and authenticated channels

Authenticated Site

Content Management Targeting Segments Testing/Optimization Analytics

Which public web / desktop capabilities are your companyable to extend to mobile platforms or the authenticated space?

44%

35%

20% 24%

21% 25%

31%

36% 38%

44% 43%

37%

Mobile Site Mobile App

In recent years, nancial services marketers have been enhancing their capabilitieson desktop public websites, rening their ability to target, analyze, and convertpublic site trafc. Unfortunately, this trafc has been shrinking, thanks primarilyto the ascension of mobile; prospects and customers are increasingly turning tomobile sites and applications to research products and services, look up balances,and pay bills. Since they are not extending their core digital capabilities to theseareas, most nancial services marketers are missing the opportunity to convert andengage customers where they are spending the majority of their time.

“As a consumer facing organization and brand, weneed to be where consumers are. So we need to deliver

scenarios on devices which have become the mostfrequently used items in our lives. Simple as that.”

- Michal Panowicz, mBank, from The Financial Brand, June 9, 2014



13/18


56% Bill pay only

22% Person 2 person payments

12% Other mobile payments(NFC, BT, QR, etc.)

10% Digital wallet

32% Lack of a clear industry-leading technology

20% Risk in adopting too early

18% Lack of consumer interest

17% Too many solutionsavailable

13% Not enough retailersupport

of respondentscurrently offer billpay as their onlydigital paymentcapability

agreed thatthe biggestimpediment hasbeen the lack ofa clear industry-leading technology

Bill pay is theonly digital walletservice offered

by most nancialinstitutions - only10% have a fulldigital wallet.

Most banksbelieve there isenough consumerinterest in mobilepayments, butno clear leadingtechnology.

Where is yourinstitution on the

road to digitalpayments?

What do you thinkis the biggest hurdlein mobile payments

adoption?

Digital Payments & theFuture of the Mobile Wallet

Bill pay is the most popular mobile walletfeature

Lack of a clear industry-leading technology isimpeding mobile wallet adoption

56%

32%



14/18


15/18


Conclusions &Recommendations

While the challenges associated with digital maturity may be great, the benetsare unmistakable. According to a 2014 Adobe survey of U.S. marketers, digital/ social marketers and data analysts are the top two roles that companies shouldinvest in over the next twelve months. Additionally, 76% of marketers believe thatthey need to be more data-focused in order to succeed. These ndings reinforcethe results of this study: the enhancement of digital programs is key to a company’ssuccess both in the future and right now. Unfortunately, many nancial servicesrms trail behind in their journeys to digital maturity, impeded not only by theirneed for advanced digital solutions, but also (and more signicantly) by a lack oforganizational alignment and executive sponsorship. Although digital maturityrequires organizational transformation and the deployment of new technologies, itwill enable nancial institutions to uncover new product offerings and novel ways ofimproving the customer experience.

As consumers increasingly turn to mobile for their banking needs, the possibility forfull mobile wallet services will continue to grow. Financial institutions seem to agreethat there is great potential in digital payments, although many see the lack of aclear industry-leading technology as the major challenge facing adoption of mobilewallets. As those technologies are improved upon and consumer condence inmobile payments grows, nancial institutions should be ready to embrace this nextbanking frontier.

As customers continue to shift their attention away from public sites, mobile andauthenticated sites and apps are becoming central to the customer experience.Unfortunately, many nancial services companies are not extending core digital

capabilities like content management, segment targeting, and analytics into mobileand authenticated spaces. Without those capabilities, those companies are missingout on critical conversion opportunities in high-trafc channels.

Financial services must accelerate their digitalmaturation

Investment should shift toward digitalpayments as condence in mobile wallettechnology grows

Mobile spaces represent the next frontier fordigital conversions



16/18


Appendices

About NetFinance

For this study, Worldwide Business Research conducted in-person and onlinesurveys of 101 digital professionals in the nancial services eld. Survey participantsincluded decision makers and executives with responsibility for their rms’multichannel marketing capabilities and strategies. Professionals from companiesincluding JP Morgan Chase, BBVA Compass, Lincoln Financial Group, Accenture,TD Bank contributed to the survey’s results. In-person surveys and interviews wereconducted on-site at the 2014 NetFinance Conference in Miami, Fl. Responses werecollected in April and May of 2014.

Since its launch in 2007, NetFinance has become the industry’s #1 multi-channelmarketing conference specially-designed for nancial institutions. Featuring morethan 70 speakers and 350 attendees, NetFinance brings together the most senior-level speaking faculty, enabling attendees to hear from the people making realdecisions. In fact, 85% of speakers are at a VP level or above.

The conference has proven to be a rich industry resource for networking, strategy,

and cutting-edge information, with 93% of past attendees agreeing that theywould recommend the event to a colleague. In just three days, attendees will learn,engage and discuss all aspects of mobile, tablets, responsive design, big data, multi-channel restructuring, cross-selling, customer engagement and creating the branchof the future. The complete agenda, list of speakers and registration details areavailable at www.netnanceus.com.

“2013 Marketing Automation Trends: Marketing Executives at Major FinancialInstitutions Weigh In On Evolving Technologies and Strategies,” WBR Digital, July2013.

“Digital Roadblock: Marketers Struggle to Reinvent Themselves,” Adobe Systems,Incorporated, March 2014.

Appendix A: Methodology

Appendix B: Related Research

http://netfinance.wbresearch.com/mc/2014-customer-experience-benchmark-studyhttp://netfinance.wbresearch.com/mc/2014-customer-experience-benchmark-studyhttps://www.linkedin.com/groups?home=&gid=820107&trk=anet_ug_hmhttps://twitter.com/net_financehttp://netfinance.wbresearch.com/http://netfinance.wbresearch.com/mc/2014-customer-experience-benchmark-studyhttp://netfinance.wbresearch.com/mc/2014-customer-experience-benchmark-studyhttp://www.adobe.com/solutions/digital-marketing.html


17/18


About Adobe

About WBR/WBR Digital

Adobe is changing the world through digital experiences. We help our customersdevelop and deliver high-impact experiences that differentiate brands, buildloyalty, and drive revenue across every screen, including smartphones, computers,tablets and TVs. Adobe content solutions are used daily by millions of companiesworldwide—from publishers and broadcasters, to enterprises, marketing agenciesand household-name brands. Building on our established design leadership, weenable customers not only to make great content, but to manage, measure andmonetize it for maximum impact. For more information, visit adobe.com.

Contact Adobe345 Park AvenueSan Jose, CA 95110-2704Tel: 408-536-6000Adobe Marketing Cloud support: 877-722-7088

WBR is the world’s biggest large-scale conference company and part of the PLSgroup, one of the world’s leading providers of strategic business intelligence with 16ofces worldwide. Our conference divisions consistently out-perform their industrysector competitors on the quality of the events we produce and the relationships wenurture with both attendees and sponsors.

Every year, over 10,000 senior executives from Fortune 1,000 companies attend over100 of our annual conferences – a true “Who’s Who” of today’s corporate world.

From Automotive events in Bucharest to Logistics conferences in Arizona to Luxuryconferences in New York and Finance summits in Hong Kong, WBR is dedicated toexceeding the needs of its customers around the world.

In addition to our industry leading conferences, our professional services marketingdivision, WBR Digital, connects solution providers to their target audiences withyear-round online branding and engagement lead generation campaigns. WBR’smarketers act as an extension of your team, relieving strain on your internalresources while promoting your brand and solutions to your prospects. Solutionproviders can target identied accounts or relevant industry/function segments ofWBR’s entire global database of over 500K senior-level decision makers.

Media Contact:Andrew [email protected]

Contact Adobe345 Park AvenueSan Jose, CA95110-2704Tel: 408-536-6000Adobe MarketingCloud: 877-722-7088

http://www.wbresearch.com/wbrdigital/home.aspxhttp://www.wbresearch.com/http://www.adobe.com/http://www.adobe.com/solutions/digital-marketing.html


18/18


Be a Part of Next Year’sNetFinance Conference

· After participating in 50+ sessions with more than 70 nancial service leaders,you’re bound to come back with takeaways to move your business forward.

· 85% of speakers are at a VP level or above. Learn best practices from industryleaders.

· 94% of attendees said they’d recommend NetFinance to colleagues. We thinkthat means you’ll like it too.

Call our customer service team to get the best available discounts for your rm at1.888.482.6012 , or email us at [email protected]

Be a part of next year’s event and join in on the discussion shaping the industry.

Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe Systems Incorporatedin the United States and/or other countries.

Click To Register Now
http://netfinance.wbresearch.com/http://netfinance.wbresearch.com/http://www.adobe.com/solutions/digital-marketing.html

Documents

The Journey to Digital Maturity