This Slideshare presentation comes from a webinar we recently put on with guest panelists Aashir Shroff from Wells Fargo, John Schulte from Mercantile Bank, and Vincent Hruska from City National Bank.
We include the text of the slides below:
2015 BANKING TRENDS
STAYING TOP OF MIND DURING THE OMNICHANNEL BANKING REVOLUTION
WHAT WE WILL WHAT WE WILL COVER TODAY
How banking has changed
Devices, Mobile Payments
Being Top of Mind
How banks can stay relevant
Data: Personalizing & Creating ROI From Digital
LET'S LOOK AT THE STATS
Changing shift in demographics
How banking has changed
Your new competitors
DEMOGRAPHICS ARE CHANGING
"The portion of the population that is currently at least 65 years old—13 percent—is expected to reach about 20 percent by 2050" - THE SMITHSONIAN
"$16 trillion in wealth is going to be exchanged between generations in the next 30 years" -WEALTH-X AND NFP FAMILY WEALTH TRANSFERS REPORT
FACTS ABOUT BOOMERS
45% of Baby Boomers and Seniors actively use online/ mobile banking Biggest users of online and have the longest OLB sessions Biggest adopters of bill pay (The Financial Brand) iPads & tablets are their second most used device (Nielsen)
WELCOME TO THE NEW WORLD WHERE...
"53% of Millennials would rather lose their sense of smell than their technology" - NEWSCRED
"The average person now has an attention span of 7 seconds vs. seconds with a goldﬁsh" - NEWSCRED
THE "ME" GENERATION IS VERY DEMANDING
Users Demand Better Mobile Banking:
% who say mobile banking was important in switching banks
BANKING NEEDS TO BE PERSONAL. FOR MOST CONSUMERS IT IS NOT.
"71% of consumers believe their relationship with their bank is only transactional" -ACCENTURE
"An average company hears from less than 5% of its unhappy customers" -RUBY NEWLL-LEGNER
"However, 81% of customers who switched brands say the company could have acted diﬀerently to retain their loyalty" -ACCENTURE
CONSUMERS ALSO NOW INTERACT WITH FINANCIAL INSTITUTIONS MORE THAN EVER
"Consumers Now Interact With Banks 15-20 Times Per Month, Up From 3-4 Times In The Pre Digital Era" - NETFINANCE
DIGITAL JUST CANNOT BE COMMODITIZED
"Online and mobile banking will not yield the best results if they are not combined with customized services. Banks need to understand the speciﬁc needs and preferences of their clients, and be sensitive and open to client concerns. This is how banks will build an empathic relationship." -BBVA COMPASS 12/16/14 BANKING REPORT
YOUR NEW COMPETITORS
A 61% Decline In The Number Of Banks In The Last 30 Years, While Deposits Up 300%+
"Up to half of the world's banks will disappear through the cracks opened up by digital disruption of the industry" -BBVA CHAIRMAN AND CEO FRANCISCO GONZALEZ
"72% of millennials would be likely to bank with non-ﬁnancial services companies with which they do business [like Google or Amazon], compared to 27% for those over 55" -ACCENTURE
BRETT KING ON SANTANDER
"Banks like Santander need to understand that the ECONOMICS of banking are fundamentally changing, and doubling down on branches is investing in indefensible modality. Listen to this sage advice from Alibaba's founder Jack Ma. The message is a simple one. If WalMart wants to get 10,000 new customers they have to build a new warehouse, a number of new storefronts, etc. What does Alibaba do? It adds two servers to its technology stack." -BRETT KING
WE HAVE ALL SEEN THIS BEFORE. KNOWING THIS, WHERE SHOULD FINANCIAL INSTITUTIONS PUT THEIR FOCUS?
FOCUS ON BEING CONSUMER'S PRIMARY FINANCIAL INSTITUTION
3 FOCUS AREAS TO ENSURE YOU STAY TOP OF MIND
Financial Empowerment: Empowering members or customers to lead better ﬁnancial lives.
Customer Centric: Be customer/member focused and allow them to interact with you, how they want.
Strategy Shift: Make the necessary technology and internal structure/mindset shifts to enable this.
BANKS NEED TO BUILD BACK TRUST
"1 in 2 Consumers Have Lost Trust In Their Banks Since The Financial Crisis." -INFOSYS
KPMG STUDY ON CHALLENGES FACING BANKING INDUSTRY IN THE NEXT 3-5 YEARS
WHAT DEVICES AREDEVICES: WHAT DEVICES ARE ESSENTIAL FOR FINANCIAL INSTITUTIO
INSTANT GRATIFICATION CAUSED BY DEVICES
"An ever-increasing consumer demand for instant gratiﬁcation is seeping into every facet of our lives, including how we bank. Consumers want to do everything on every device that they own: laptop, smartphone, phablet or tablet." -BYL CAMERON, CG'S DIGITAL PRACTICE LEAD
WHAT CUSTOMERS CRAVE FROM DIGITAL
1. Monitor all accounts in one place
2. Anywhere, anytime
3. Move money when and how they want
5. Make it easy, make it work
6. Being able to view and do (action it) -JAVELIN STRATEGY & RESEARCH
WEARABLES- WHAT IS THE USE CASE? WILL THEY TAKE OFF?
IT'S ALL ABOUT REAL-TIME FEED
"Wearable technology will deliver the key real-time ﬁnancial feedback that is critical in making ﬁnancially-savvy behavioral changes. Focusing on speciﬁc spending decisions rather than psychology. Through Moven we can create day-to-day gamiﬁcation of ﬁnancial wellness." -BRETT KING, FOUNDER AND CEO, MOVEN
USAA PUSHING THE BOUNDARY WITH VOICE & FACIAL RECOGNITION
"USAA’s facial recognition requires users to look at the screen and, when prompted, blink their eyes. For voice recognition, users must read a short phrase" -USAA'S PRESS RELEASE
How much longer until we reach a tipping point? Will the October 2015 EMV deadline result in mass merchant adoption?
"Apple Has Now Signed Up 750 Banks & Credit Unions For Apple Pay" -TIM COOK, CEO, APPLE “2/3 of Contactless Payments Since October Have Been Through Apple Pay” -TIM COOK, CEO, APPLE
HOW DO YOU PERSONALIZE A DIGITAL BANKING EXPERIENCE?
DATA IS THE NEW GOLD
“More data has been created in just the last two years than in the entire previous history of the human race” -SCANDINAVIAN RESEARCH GROUP SINTEF
"Wal-Mart collects more than 2.5 petabytes of data every hour from its customer transactions. One petabyte is equal to about 20 million ﬁling cabinets worth of text." -HARVARD BUSINESS REVIEW
“Banks have goldmines of data available to them. However, it is not just about the data you collect. It’s how you mine it, interpret it and draw insights to provide personal customer experiences, which can be quickly deployed across the organization” -NETFINANCE
“Yet the vast majority of data never gets used. Only 0.5 percent of all data is ever analyzed.” -MIT TECHNOLOGY REVIEW
"Very little in digital banking right now is personal, almost nothing about digital drives emotion. Data has to be used to drive that" -OMNI-CHANNEL EXECUTIVE, TOP 50 BANK
"67% of Millennials are interested in their bank providing tools and services which help them create and monitor a budget, compared to 31% for those over 55." -ACCENTURE
“While the number of ﬁnancial products held by a typical household hovers around 10, most customers only hold 2-3 services at any one institution.” -JIM MAROUS, FINANCIAL BRAND
BEING TOP OF MIND: HOW CAN BANKS/CREDIT UNIONS CAN STAY REVELANT
What Role Does A Bank or Credit Union Play In This New Era? What Value Do They Bring To Customers?
CISCO'S STRATEGY TO BE DIGITALLY FOCUSED
"Invest in a future-proof, omnichannel-ready infrastructure that accommodates new interaction channels and is integrated into existing core banking apps. Restructure the organization around customers and channels rather than existing product-centric models." -CISCO (2012)
HOW DO YOU WORK WITH FINANCIAL DISRUPTORS?
“Millennials fully expect innovation in banking to come from outside of the industry. Oﬀering digital banking won’t be enough to build a long-lasting relationship … Instead, banks & credit unions should create a strategy for this segment. FI’s should advise young people on how to manage their ﬁnances, seek millennials’ feedback, hire young employees, and partner with ﬁnancial disruptors." -BBVA COMPASS
THE NO 1. ROI GOAL: SERVE AS YOUR CUSTOMERS' PRIMARY BANK
Win over MoneyHawks
Increase Profitability of Customers
Targeted, cross-selling opportunities
Building Back Trust
Providing Personalized Advice
Win customers from competitors
Prime bank means top of mind when customers looking to buy
Develop fee based services for high-end customers
Cut costs through self service channel