The Good, the Bad, and the Broken: How Money Experiences Make or Break Consumer Trust
June 07, 2023
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Sachi Osterloh: Alright, welcome everyone. It looks like we have some people trickling in, so we'll just give it a couple of minutes, or just a couple of seconds, and then we'll go ahead and get started.
Alright. Well, hello, everyone, and welcome to today's live webinar session: The Good, the Bad, and the Broken: How Money Experiences Make or Break Consumer Trust.
My name is Sachi Osterloh, a senior manager over channel marketing. And it is my pleasure to be here with all of you today and joining us today are a Raymond den Hond, Chief Commercial Officer of partners, and Stephen Giannotti, a senior solutions consultant.
Today, they're gonna be sharing their insights on how money experiences can either make or break consumer trust. Trust is a vital factor in today's rapidly evolving financial landscape and understanding its dynamics is essential for any organization to succeed. So, before we get started, I want to mention a couple of housekeeping items.
First, we have a dedicated chat and Q&A section available for you at the bottom of your screen. So, please feel free to add your comments to the chat, or drop in your questions in the Q&A section throughout the session. And, then towards the end, we'll allocate some time to address as many questions as possible. So with that, we'll go ahead and kick it off, and I'll turn it over to you, Raymond.
Raymond den Hond: Thank you very much, Sachi, and good morning. Good afternoon, everyone. Thank you again for joining us.
Today's primary topic is really around trust and trust in the financial services industry itself. And we know that that is one of the most important things for our industry, especially as we see certain trends around losing deposits, revenues declining, etc., right?
We also know that money remains the No. 1 source of stress for consumers. And, consumers have an increasing need to trust their financial institutions to keep their money safe, to protect their personal data, and to deliver reliable services to help and manage their money more responsibly. Right? So, as I mentioned earlier, right, why does trust matter in the financial services industry? And if we take a look at some of those key underlying topics I mentioned earlier around
financial institutions that are seeing a deposits decline and revenues shrink. But more importantly, user engagement and adoption is waning right? And we're going to spend some time today to give you some ideas and tips, and some solutions as to how to increase adoption. But, more importantly, how to retain your deposits, grow your deposits, and increase the trust that you have with your consumers.
We're going to take a few moments here, and I'm going to spend a few slides going through a couple of items that we picked up from a book called The Power of Trust and… Steve, If you go to the next slide:
In The Power of Trust, the authors write: there that today the need for business to focus on trust is clearer than ever before. The conditions that now shape the landscape have brought
trust directly to the forefront of conducting good business.
We all know that if you have trust with your consumers, they naturally gravitate towards your brand, your identity. And again, in the financial services space, this is of paramount importance to ensuring that we maintain and grow deposits through the respective tools and options that we make available.
If we have a look at the next slide here, there is some interesting information that came to light through the 2023 Edelman Trust Barometer where they conducted some research around 32,000 global respondents on who do you trust the most. And surprisingly, or maybe not surprisingly to some people, is that financial services is second to last on the trust scale just slightly better than social media. I don’t know about you, but I find that it's quite alarming. And it's concerning right? So 59% of those 32,000 respondents indicated that they trust their financial services provider to do what is right for them. We're at 75% trust in the technology sector.
I think a lot of you saw the announcement that came out from Apple several weeks back with a launch of the High Yield Savings account at 4.15% interest, and within 4 days, nearly landed a billion in deposits — a billion dollars in deposits. Now that is, that is significant. So again, what one would often question surveys like this but when you see industry information come our way like with Apple again, I'd I'd ask you to think about who do you trust most? Your financial service provider or Apple?
Again, we need to do better as an industry and as this graphic illustrates, we shouldn't underestimate the opportunity that we have in front of us to help our consumers achieve their financial goals.
We know that trust is essential. It is hard earned and easily lost, and we're going to give you some ideas here as to how to maintain and regain that trust respectfully.
But look at our next slide here around building trust. We know that there's a myriad of different factors that playing to whether an organization or a service is trusted
In the book that I mentioned, the Power of Trust, the authors break down trust into 4 components: competence, motives, means, and impact.
We translate that in the financial services sector into basically 4 key competencies and consequently into 4 different questions that I'm going to touch on here in more detail.
The one is around experiences. Second around transparency, then security and outcomes. Those questions relate to:
- Are we delivering the functionality and experiences that consumers want and expect from their financial service provider?
- Are we being transparent in how we leverage the consumer’s financial data to manage their financial needs?
- Are we safeguarding financial data and are we implementing secure processes to benefit and to educate and share with those consumers themselves?
- Lastly, it's around driving positive outcomes for consumers to help them reach their financial goals.
Like, I said, I'm gonna go into a little more detail on the subsequent slides here. The first slide speaks a little bit about better money experiences.
Steve, you can just forward to next slide.. Better money experiences. And again, the data is critical. Data becomes the underpinning of everything we do and everything we're going to present today.
Basic financial functions, such as viewing a balance, your transaction history, looking up a monthly statement are not necessarily what consumers are looking for right. They expect more from their financial service provider today. In fact, 66% of consumers expect that their bank or credit union really know them in depth, and can help them understand what they should be doing in terms of their financial well being, or identify rewards for them or other opportunities.
If we look at data, we know that it personalizes the user experience, it powers that user experience to be more proactive and create more connected experiences.
It delivers tailored insights. And we're going to touch around here in this presentation, this webinar, around actionable insights and general insights and notifications that you can target to your consumer at the point when they need it most, when it matters most to them, and when it's relevant to them in the digital, mobile banking experience.
That is what ultimately drives better financial control and understanding for the consumer and drives better money experiences and ultimately, leads to better trust.
But look at the second key topic here around transparency. Trust can erode when consumers do not understand their financial lives right or have access to their financial data. Building trust ensures that consumers have that visibility and control over who has access to their financial data
and how it is being used.
It also means reliable and secure data access, and without it, consumers have a little transparency or insight into what is really going on in their financial lives.
So having that secure access to their financial data, they become empowered to make smart money decisions and achieve their financial goals.
and we have subsequent webinars around open finance, and how security plays importance into those key aspects of the financial wellness of your consumers.
So again, that's transparency.
If I have a look at the next key competency of the question that I raised earlier is around security, being more secure. And, above all, consumers must trust that their financial data is safe, secure, and that their money is being handled responsibly by the financial institution.
That implies that you, the financial institutions, have to provide robust security measures and make sure that the consumers data is safe.
If you think about it, roughly 10% or one out of every 10 consumers say that they don't trust their financial service provider with their personal data.
And, it’s about 22 out of that population that remains neutral.
Again, we need to be able to do better. And there's ways that we can do better. Context matters when it comes to security.
If you think about it. one in 4 consumers — And I'm conscious some of you've seen all your bank statements all go online. And you see a couple of characters that represent your transaction when you've just spent some money. It could be an Amazon or Macy's or wherever else. Having context around those transactions, around being able to categorize and actually make it relevant to the consumer, can help drive better trust in terms of the security aspects around the financial data.
I'm sure a lot of you have seen that call from your call center and the statistics that there's probably an increased amount of reported fraud. There's not actual fraud, right? Because they see these weird characteristics on their statement, and they can't quantify where they spent money. So they phone your call center up and it. It takes you several minutes
to maybe 10-15 min, or whatever, to try and identify the actual source of that transaction. and mitigate what the consumer then reports as potential fraud.
This drives increased costs for the financial institution. And again, erodes that consumer trust.
And we have ways that we can combat that and provide means and mechanisms to basically provide clarity around the transactional data for the consumers.
If I look at the last question, and I'll be brief here, because I really want to allow Steve to get into the details around Insights and what they can really deliver and drive for your institution.
The last one is around driving better income. Sorry, better outcomes, not incomes, better outcomes. Right?
If I have a look at, in order to retain consumer trust for the long term, it's important that we take steps to enhance that consumer or customer engagement and drive further positive outcomes for your customers themselves, right?
According to our data, and, we've seen this through other institutions that provided us information, we believe that stronger financial wellness, tools, and insights. In other words, if you can bring together all of your consumers data together in one view — you create that 360 degree view of their financial wellness, and you're able to drive actionable insights for that consumer which makes it relevant to them at the point of time that they're transacting with you. We believe that that is going to become a key differentiator in 2023 and beyond.
A couple of statistics here quickly:
- We know that 39% of consumers believe, or claim, that their financial service providers had the responsibility to help them be financially strong, and that increases to 58 and 56% with your Gen. Z and millennials. respectfully.
And just the last point for me around the authors of The Power of Trust is that we can't often fool ourselves into thinking good intentions. Taking actions we believe are good for the good of others is all that matters.
So again, I'll leave you with that and I think I'll turn it over to Steve to get into some of the more specific details around our insights, capabilities, what that means to you, and how this can really drive further consumer adoption, engagement with your digital platform. And again, like I said, increase and retain that consumer trust.
Over to you, Steve.
Steven Giannotti: Thank you, Raymond, and Hello, everybody. So I'm going to talk to you a little bit about the the accelerator program at Q2 and how we have collaborated with Q2 to provide these insights into the platform to deepen that relationship between the financial institution and the consumer and deliver more personalized digital money experiences.
As you can see there on the right, and I have in the demo a bigger view of it. But you can see how we've embedded onto that landing page a mini widget of our financial insights.
So that will present the user a carousel of insights or nudges about their finances based on what we're seeing in the transaction data flowing through our system.
MX Insights — the way it works is the the transactions from the consumers held accounts at your financial institution, but also accounts that they have aggregated from external relationships, whether it's a checkings, savings, a loan, or credit card, mortgage, etc. All that transaction data flows into the MX platform, where we can cleanse and categorize and enrich that data with other metadata, including things like merchant logos, a better transaction description, meaning, making it much clearer for the end user.
Those transactions and those categories. together with our machine learning and artificial intelligence, really drive that personalization and delivering these insight cards in a financial feed
much similar to what consumers are used to with social media platforms. So it's a familiar experience. But the content is personalized engagement between the financial institution and the consumer to help them do 3 things. All of the insight cards are really designed to protect the user (1), to inform (2), and to guide (3) the user. Those are the 3 tenants.
Here you're seeing samples of the various insight cards that are designed to protect things like an overdraft warning, for example, with a call to action, to move money from an operating account or from a savings account to an operating account. Rather. and there's other things in here like the higher subscription amount. So when Netflix came out, for example, with an increase in their subscription, it's informing the user of that increase in that subscription fee.
The next tenant of MX Insights is to guide the user on their financial well being. And these are some samples of those cards, those insight cards, and you'll see things that help inform the user of certain situations that are going on. So there's also cards here regarding subscriptions and summarizing all of the subscriptions for that period. There's also cards related to their budgets so that you know, as they're approaching their budgets, are they still in the viable threshold? Are they approaching the caution, or have they exceeded that budget threshold? So interesting insight cars there to help guide the user.
And the last tenant is to inform the users. So these are ways to notify the user about things that we're seeing in the transaction that are specific and personalized to them. So you'll see things like check deposits or payroll advances or refunds from your credit cards. And again, more subscription cards as well. There's also the ability to have cards to inform the users about bank closures that was really helpful during the COVID time.
So I'm gonna switch over now to show you a little bit about what it looks like inside the Q2 environment and just recap that in a little larger view for you.
So when a user signs into Q2 eBanking on the desktop, it's also available on mobile,they'll see the financial feed, the contextual PFM, at the top. And Q2 is also embedded, using our APIs, the ability to see, not just your held accounts, but your held away accounts — so any accounts that have been linked using this button here.
It will appear here. and the financial insights will show up down here at the bottom.
It's in a carousel format so as a user scrolls through what they'll see initially after they sign into Q2 is they'll see the top 5 cards for that particular day. They also can access the full financial feed — the scroll wheel experience by clicking view more.
and I'm going to switch to this experience here and blow it up so you can see what that scroll wheel experience looks like. So this is a customer and this is her financial feed. So after she's launched in and accessed the financial feed, you can see it's a scrollable experience similar to what she'll see like an Instagram. One of my associates that calls it finstagram for finances.
The cards go even a step further to personalize based on the machine learning and the AI that we have looking at the data that's in our platform. There'll be a set of cards that are generated for her every day, and that'll drive her to come into your digital platform, and afford you opportunities to engage and help elevate her experience, and protect and advise for things that are happening with her finances.
So they can also click on these 3 buttons and create a personalized algorithm to her user ID that will further personalize the cards that she sees so she can vote up, vote down, or dismiss those cards altogether based on what she prefers, so she can further personalize the experience for herself.
Several of the cards have calls to action like this “Safe to Save.” This one in particular is saying, hey, based on the data that we're seeing today, in your checking account, based on historical balances and activity, and what we're seeing in your transaction history, we see that you have a surplus of $97. Would you like to transfer that into your savings account?
She can click transfer, and what we do there is we configure a post message when we implement this to use the native transfer functionality within Q2 and she can go into and select her savings account, slide to transfer that, and close it out. And what will happen is she'll get a little animation which further reinforces that positive savings behavior with her and kind of gamifies that experience for her.
Another example of some of these cards that are dynamic in nature… if I go to category spending, you'll see that spend on average a little under a hundred dollars. But there's this big anomaly here, so if she clicks on that, it'll take her right into drill into the situation. She can review the transactions that are affecting that anomaly. She recognizes the cake and remembers, hey? That wasn't my personal food and dining expense but that was why I was traveling on business. So I'm gonna change that category to a reimbursable expense. Our data engine will ask her if she wants to recall that transaction this one time, or always relate that category to this merchant. I'm just gonna click this time only. And one of the unique things with MX is we dynamically refresh our insight cards in real time. So that just helps reduce the stress level for today if she's looking at that anomaly.
And we further refresh the front card at the highest level as well. So she gets that positive affirmation that that anomaly is resolved, and she can move on and continue through her financial feed. As she scrolls through, she'll see some other cards that are in here. Overdraft warnings as an example of a card designed to protect her. And she can come, click on, learn more and understand why we're making that suggestion that she's gonna have an overdraft in the feature and she can see the propensity or the confidence level that it's gonna happen. But also some of the reasoning behind that and some recent transactions. So it takes that whole experience and brings everything that she needs to know to inform her and protect her of that situation.
And then there's some other cards that are designed.. this one, for example, as a best practice.
So when it comes to credit utilization with your credit cards, it's a best practice to keep that credit utilization under 30% to kind of maximize your credit score, and if she goes in here she can learn more and get a little bit about what does that mean? a little bit of education about what that means to her as a best practice. And because she's aggregated her credit cards together, we have that information all at her fingertips right here, and she can see that Citibank is the credit card that is affecting that card to be triggered. As she comes back out she can see a card that relates and informs her of how much she has spent on interest with Citibank. And then with some of the marketing capabilities that we have, you can also design a campaign and inject that campaign into this financial feed, and this call to action can be a post message to your credit card application system so that you can put her right into the application process so she can apply for a credit card and transfer for her Citibank balance to your financial institution, and get a better rate and solve some of those business problems for herself.
So as you scroll through here, there's a number of different cards. I don't want to take too long to cover them. but there is another resource that we have available for you. And
the insights availability. So we have a website called Academy.mx.com. It's our learning management system for our customers. And in here we have a bunch of articles that are hyperlinked in this on the presentation for you. Insights availability is a link to the library of all of our Insights that we have available. So in this page you can see the entire list. But we also have them broken down by those that protect, guide and inform.
And there's some other helpful useful information in here, including a recap video if you don't want to watch this whole presentation again, you want just a short video of Insights. You can get that in this financial feed overview. But if I go into, remember that “Safe to Save” one, that one was called Savings Opportunity. And you'll see v2. So we're updating these periodically right now. There's about 80 different Insights that are available. Some are for the Canadian market. Some are for the U.S. market. When we set you up, we'll define which ones you want to start with through a collaboration call with our delivery team. And thereafter If there's new ones that become released, we'll bring those to your attention so that you can decide if you want to release them.
As you come in here and you click on one of them, you'll see the requirements and triggers and the customizable text. So if I open those up, you'll be able to see what triggers that card to appear for a customer and down here, the customizable text. So you have options to change the copy language in the card to reflect the terminology and the language that is most relevant to your customer base, to make that even more personalized for your users.
And then, as you come into drill down, you can see the calls to action, the typical ones, that we see set up. And if there's a mini widget available, you will be able to see a sample of what that form factor looks like in mini widget experience.
So I know we're getting close to time — 3 min left. I encourage you to check this out: Academy.mx.com.