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Digital banking beyond Gen Z: effectively engaging with other customer segments
Alex Kwiatkowski, Senior Marketing Strategist – Banking & Digital Channels
3© Misys 2015 2 May 2023
Your presenter
Alex Kwiatkowski, Senior Marketing Strategist – Banking & Digital ChannelsAlex works within the Global Solutions Marketing team at Misys, and focuses on strategic activities in banking and digital channels.
He formerly ran IDC’s Financial Insights team in Europe, where he was responsible for all advisory and consulting services, working closely with banks, technology vendors and service providers.
Before joining IDC, Alex spent 4 years as a Principal Analyst within Ovum’s Financial Services Technology practice. Prior to this he was a senior manager within LloydsTSB’s Business Delivery team.
4© Misys 2015 2 May 2023
•Why banks must consider the digital needs and preferences of customers in all segments and not just millennials;•What actions should banks take to deliver a differentiated user experience;•How can customers take greater financial control, and what do they expect from their chosen provider(s);•Which channels should banks be developing to maximise sales revenue; •Where must banks concentrate their operational and technological efforts.
Covered in this presentation
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Meeting the demands of retail banking’s main outside-influencers
Customers
Customers’ demand: Improved user
experience Increased satisfaction
level Ease of access to
relevant products & services
Greater trust in their chosen provider(s)
Regulators
Regulators’ demand: Increased visibility of
regulatory compliance Mandatory reports
delivered faster and with greater accuracy
Greater confidence that a bank is aware of all risks
Investors
Investors’ demand: Improved Return on
Equity and Return on Capital Employed
Increased confidence in bank’s long-term future from improved financial performance indicators
Evidence of investing in restlessly innovative market leader(s)
CreateStrategy
“The biggest challenge – and most critical for retail banks right now – is serving customers better
than we have in the past. Focusing on customers will ultimately deliver the right
sustainable outcome for our shareholders.”
Antonio Simoes, CEO, HSBC UK
Who is digital banking really suitable for?
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I’m impatient
I’m tech-savvy
I’m disloyal
I am willing to try new things
The impact of the millennial
Africa494,601,127
Europe298,291,781
Asia2,054,495,079
Australia16,440,275
The Americas429,009,427
Millennials worldwide
Millennials will comprise 75% of the global workforce by 2025Source: Deloitte Millennial Survey 2014
3.3bn
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Who are the main users of digital banking?
Nearly 2.3m people aged between 70 and over 100 are using internet
banking
>450,000 customers aged over 60 have downloaded
banking apps…nearly 20,000 of these customers are 80+
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The broad appeal of digital banking
HSBC’s internet banking customers in their 70s log-in more frequently
than any other age group
Between 2013 and 2014 there was a 41% increase in the customers
aged over 80 who had downloaded Barclays’ mobile banking app
The number of HSBC customers aged 70+ who had downloaded the banking app increased by almost
130% in one year
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Bridging the generational divide with digital banking services
Improving the customer experience to truly differentiate your brand
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The strategic focus on customer centricity and user experience
61% of surveyed* banks have a dedicated Customer Experience Team. 20% will introduce this in the next 3 years.
*n = 74Source: Efma
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•Mixed success for Europe’s retail banks
The challenge of turning promised strategic vision into reality
Source: 2014 World Retail Banking Report, Capgemini & Efma
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Help customers make the transition from physical to digital banking
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FusionBanking Essence Digital
Put your customers in control of their finances
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PFM is a tool which provides extensive information for the client, but gives greater insight for the banks to come up with relevant product offers
Encourage and enhance online planning for a better financial future
Be seen as a trusted advisor
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Improving online and mobile sales with smart tips (1)
Banner on the top of the Dashboard
Promotion item is part of the tile view
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Improving online and mobile sales with smart tips (2)
Transform mobile banking into your most successful sales channel
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Making extended use of digital channels, and in particular mobile
How important do you expect digital channels to be for product sales in 2018?
Channel Simple ComplexOnline 5.89 4.78
Mobile 5.53 4.13
Telephone 4.42 3.87
1 = Very Low / 7 = Very Highn = 78Source: Efma
Only 1.1% of banks’ sales are currently made
through digital channels
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Data-driven decision-making for sales and marketing activities
Volume
Variety
Velocity
Value
Current Plan < 1 yr Plan 1-3 yrs No Plans Don't Know0%
5%
10%
15%
20%
25%
30%
35% 32%
24%
30%
8%5%
24%
14%
27%
19%16%
Business intelligence New products or services
Does your bank have any Big Data projects for collecting and using unstructured information from digital channels?
n = 37Source: Efma
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Develop new products based on deeper customer understanding
58% of surveyed* banks are using micro segmentation
68% of surveyed** banks are using predictive analysis
*n = 39Source: Efma
**n = 41Source: Efma
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Making effective use of information to gain insight and drive revenue
Segmentation reports
Marketing campaigns
Transaction data
Interaction data
CI DW/DM
Clickstream data
Customer satisfaction data
Social data
Unstructured repository
EDW
Unified Access Layer
Next best action
Volume
Variety
Velocity
ValueContextual marketing
(100x better)
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Taking maximum advantage of event-based and contextual marketing
Contextual marketing is about deliveringthe right message, to the right person, viathe right medium at the right time
Yes No Don't Know0%
10%
20%
30%
40%
50%
60%
70%
43%
53%
5%
28%
65%
8%
Online channelMobile channel
Does your bank have the capability for event-based, real-time marketing?
n = 40Source: Efma
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Persona-based user interface and functionality
No one-size-fits-all in digital banking
Misys FusionBanking Essence
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Misys FusionBanking Essence digital channels platform
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Selected clients of Misys’ digital banking solution
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Industry views on FusionBanking Essence Digital
“With online banking services from Misys, Banca Transilvania’s market share has shot up from 5% to almost 9% – an 80% increase.”
Marius Flore, E‑Delivery Channels Manager, Banca Transilvania
“Misys' acquisition of IND represents a largely positive development for both companies' current and prospective customers. It extends Misys' [FusionBanking Essence] core banking platform with advanced PFM functions and planning capabilities. It should also drive heightened competition in the markets for core banking, digital banking and PFM technologies.”
Stessa Cohen, GartnerIND Purchase a Positive Development for Misys, and for Digital Banking’
“Misys DC’s main strength is its approach to the design of the user interface and its focus on business adaptability via its lean portal solution. This allows banks to achieve a compelling "look and feel" and usable display on a number of supported devices. Ovum therefore recommends that banks explore Misys [FusionBanking Essence Online] in their search for a next-generation digital platform.”
Ovum Decision Matrix: Selecting a Next-Generation Banking Digital Channel Platform
“UBS Switzerland has fully redesigned its e- and mobile banking service providing its clients an entry page that can be tailored to their individual information needs, improved user navigation and tablet-optimized presentation. One of the new features is the Personal Financial Assistant, developed by [Misys]. We believe that with these innovations UBS is making online banking simpler, clearer and more personal.”
Andreas Kubli, Head of Multichannel Management & Digitization at UBS Switzerland
Gazeta Bankowa “Hit of the year 2014”Misys FusionBanking Essence Online and received a special recommendation
Golden Banker 2013 Internet users chose Alior Sync (implemented by Misys) “The best online payment method”
Finovate Europe‘Best of Show’ for FusionBanking Essence Digital
Banking IT-Innovation Award 2013Winner: Misys FusionBanking Essence PFM
Key points
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In summary
1.Ensure your digital strategy is geared towards customers from all generations;– Enable the creation of specific user personas– Help educate customers to make transition
from physical to digital2.Deliver a differentiated experience;
– Data-driven, customer centric strategy– Event-based, real-time contextual marketing
delivers results3.Provide relevant digital tools;
– PFM & Smart Tips4.Improve sales via mobile channel;
– Target captive audience with relevant products5.Select powerful enabling technology
– FusionBanking Essence
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Alex KwiatkowskiSenior Marketing Strategist, Banking & Digital Channels
