Is Your Largest Branch Open for Business?

Transcription

1 Is Your Largest Branch Open for Business? estrategy for Today s Financial Institutions Ron Daly President/CEO DigitalMailer, Inc.

2 What We ll Cover Today What is the world of estrategy and why it s so valuable Where are financial services going on the web Seven steps of an estrategy The new moments of opportunity Summary and questions

3 The World of an e Strategy All financial services delivered remotely via Website (information, education, delivery, Social Media) Online banking (transactions, acct opening, documents) Mobile (info, transactions, alerts, marketing) Communication ( , SMS, Voice, SmartApps, Chat, Video Chat) Remote Delivery (ATM, Share Branches, Call Center, AVR, RDC, Mobile capture)

4 Your Virtual Branch MUST be your biggest & most cost effective branch in your network # Bank of America branches. 6,000 # Wells Fargo branches. 3,300 # TD Bank branches.. 1,300 # Your CU branches.??? You can t out branch them but - the digital communication channel levels the playing field to compete with the largest banks! Trouble is very few use it to its full potential!

5 According to the History Channel the Smart Phone is the #1 Gadget of the past 100 years

6 Another Cool Gadget.

7 New Mobile Access Devices are Appearing Internet Connectivity Create a Wi-Fi hotspot using SYNC with MyLincolnTouch and your phone.

8 Where are Financial Services Going?

9 One Place for Sure is Mobile FRB Predicts M-Banking & Payments will Grow Security Concerns 42% Female Use 55% Mobile Phones 87% 2,300 US Adults Make Payments / Purchases 12% A significant fraction of mobile users appear to be interested in using phones to make mobile payments. Smartphone for M- Banking 21% Smartphones 44% Fed s Consumers & Mobile Financial Services Report

10 What are GEN Y & other Mobile Users Doing on Their Mobile Devices? Phone Calls Text messaging Music Games Surfing the web Smart Apps Facebook & Social Media GPS Scanning QR Codes Photos/Instagram/Snapchat Payments & much more

11 The Rise of NeoChecking Accounts

12 The future of retail banking? NeoChecking accounts Mobile-first design PFM the focus, not the add-on Fluid accounts blending prepaid, debit, and credit Or these Guys! Say hello to Bluebird Your Checking & Debit Alternative Loaded with features. Not fees.

13 Decoupled Stuff Breaking the Financial Product Mold

14 Payment Channels are breaking!! Watch Out Visa and MasterCard: PayPal Is Coming to a Brick-and-Mortar Store Near You By Martha C. White February 15, 2012

15 Target REDcard The Target Red Card program is a great example of how the value proposition works. Consumers enroll with Target, provide their checking account to be debited and receive 5% discount at the register when they use the Red Card to pay. Target saves the fees they would have otherwise paid to the payment networks and banks and gives the savings back to their customers. By definition, decoupled debit cards are processed via the Federal Reserve ACH System as the mechanism for reaching a consumer s checking account as a debit to their account for their purchase. The payment side of the product operates like an electronic check, but the product is more than just a payment card.

16 Redstone FCU Opens Right Choice Services Store DECATUR, Ala. (November 2012) Redstone FCU has opened its first Right Choice Money Services store, which will offer low priced, basic financial services, including check cashing, money orders, money transfers, bill pay, and reloadable prepaid cards. Because of Right Choice s relationship with Redstone, people can easily transition into full service credit union accounts, if they choose.

17 Allied Payments Mobile Picture Pay Picture Pay is a mobile payment product that allows a user to Point, Shoot, and Pay their bills.

18 Merchants are using Technology to take back the Customer Relationships

19 Starbucks CEO reinvents the spiel; Top-secret plans aim to keep it fresh USA TODAY April 25, 2013 The bulk of Starbucks' innovation over the next several years will be technology-focused, Schultz says. Not surprising for a company that claims an astounding 54 million Facebook fans globally. "We are witnessing a seismic change in consumer behavior," he says. "That change is being brought about by technology and the access people have to information." How folks pay for their Starbucks coffee could be the nearest-term change with the widest impact. Already, Starbucks is producing more than 3 million mobile payments per week. That, says Schultz, exceeds the combined mobile payments of the next 10 companies closest to Starbucks. "This will result in a much deeper experience with our customers," he says. For consumers, that will mean much more one-to-one marketing, says Schultz. That is, specific deals and promos could be specially targeted to individual consumers based on their buying habits.

20 Starbucks Just 30 Days Later Starbucks CEO: We Process 4.5 Million Mobile Transactions Per Week 30 May 2013 Now a multi-billion dollar business, Starbucks' mobile payment app is processing more than 4.5 million transactions a week, the company says, despite its humble origins as a way to reduce customer wait times at stores. Speaking at the Sanford C. Bernstein Strategic Decisions Conference, president and CEO Howard Schultz said he expects adoption to further increase as the card expands into grocery stores and the way in which customers use mobile phones continues to evolve. Basically over this past year and a half, we've noticed a seismic change in consumer behavior and that seismic change primarily is due to social and digital media and the rising tide of mobile phones replacing desktop computers, Schultz said.

21 Where are Financial Services Going? NOW 1-3 yrs 3-5 yrs Web 2.0 A2A & P2P transfers Remote Deposit for all Voice of the Customer Instant approval lending Online Account Opening marketing 1 to some Mobile banking/alerts All paper documents online Mobile Deposit Capture Web 3.0 Unlocked MCIF Data drive content & sales PFM tools Customized websites Dynamic & newsletters Social Media everywhere Chat 24/7 Offers targeted by Geo location Mobile payments Web 4.0 Technology closing deals 24/7 Match PFM & product set Info flows each way Charge for the old model New delivery devices Virtual Safe Deposit boxes Bidding for financial service RFID Chip Technology Mobile Strategy

22 Strategic Focus of an e Strategy AKA. How Can We Compete with Banks & Non-Banks? Leverage technology to: Increase service and convenience Use unique features in each channel to target opportunities Reduce dependency on expansive & expensive branch network Move communication towards a new one-to-one level Stop pushing info and start sharing info both ways

23 New Technology Should you have it Locked Behind Online Banking? Requiring online banking only gets you part of your membership. Multi-factor authentication doesn t have to only be in front of online banking (DMI s mobile MFA tool) Standalone lets the consumer select the products and features they want Most technology has an API these days. Be sure to negotiate the cost in the buying or renewal process

24 estrategy Step #1 Decide on the Goal & Where You Want to Go What do you want from the strategy. More new customers? More profitable business from your existing customers? Elimination of paper and old technology systems? Limiting the number of new branches? Younger members that might stay with your bank or CU as they age? Just like a GPS system..you ve got to know the destination before you get the map!

25 estrategy Step #2 Get the tools in place for service & convenience Rebuff or replace anything in Web 2.0 financial services that cannot support Web 3.0 and 4.0 transactions Acquire state-of-the-art financial services technology missing in Web 2.0 Create a financial services Web 3.0 plan Start positioning for Web 4.0

26 Continue the Transition to Non-Branch Banking and a Different Type of Branch If you can do it in a branch you must be able to do it online in all browsers Ask yourself is there anything you can do right now in a branch that you can t do online??

27 Transition from Online Banking to Mobile & Tablet Banking Ask yourself is there anything you can do right now in online banking that you can t do on a tablet or mobile app??

28 estrategy Step #3 Create an e place in the Organization Create C level position with authority to do what it takes to grow business and drive estrategy aligned with Corporate strategy. WHY? Ad-hoc programs launched at different times and they don t talk to each other Virtual communication is inconsistent ( , online banking, website, mobile) Multiple ways to communicate with some overlap, singular attempt or not at all Lack of efficiency and effectiveness because customer information is locked and not available to target next product or service And it s only going to get worse!

29 Take Advantage of the New Moments of Opportunity

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31 JIMMY CHOO $1400 Can I afford it? How should I pay? Can I get an offer? What did others pay?

32 The New Moment of Opportunity - ATMs

33 The New Moment of Opportunity - Post Sale Triggered s & Ads automatically cross-sell related products to those just previewed or purchased recommends other items you might want before you leave. If you liked that, you might also like this.. Another Angle Customer s who bought this also bought (liked, previewed) this.. It works because no one wants to be left out of the crowd!

34 Educational Series for New Vehicle Cross-sells Members are automatically loaded into existing cross-sell series each day to remain engaged with a member that has new vehicle loan through four follow-up s

35 The New Moment of Opportunity Social Media?

36 estrategy Step #4 Set a Corporate goal to Collect Customer Contact Points To leverage technology to provide the ultimate in convenience, 24/7 customer service and profitable growth your technology will need: addresses Cell phone numbers Home phone numbers Collect them all in one central location that shares the data with other technology and make sure the database is easy to update from any source.

37 estrategy Step #5 Start to drive messaging towards devices & one-to-one communication Old way Good Same message to everyone Same message to some Better Same message to few Future Targeted one-to-one messaging Through those addresses, cell phone numbers & home phone numbers

38 estrategy Step #6 Open data for Event Driven Marketing & Communications Ad Engine and ARB can drive 1-to-1 communication in all these channels Core data off loaded to unlocked MCIF System MCIF data off loaded to Targeted Ad Engine & Automatic Relationship Builder System Legacy Core Systems emcif System Where key data is stored to feed Web 2.0, 3.0 and 4.0 technology to communicate via print, , mobile or phone Legacy MCIF Systems

39 Automated Communication Creates Efficiencies! Digital FCU ARB Statistics Incomplete Loan Application Approved Pending Documents (14 Day Reminder) Approved Pending Documents Total Sent: 2,654 Total Opens: 55.31% (1,468) Total Clicks: 24.57% (652) Unsubscribed: 0.19% (5) Bounced: 0.87% (23) Total Sent: 15,510 Total Opens: 58.28% (9,039) Total Clicks: 26.69% (4,139) Unsubscribed: 0.08% (13) Bounced: 4.02% (623) Total Sent: 1146 Total Opens: 52.89% (3234) Total Clicks: 15.36% (939) Unsubscribed: 0.20% (12) Bounced: 4.11% (251)

40 Variable Field Inserting switches images and $$$ insert based on HELP available balance

41 New Customer On-boarding with Youthful images From Online Account Opening Report

42 estrategy Step #7 Once open Get Personal Get Local and let an enhanced communication, sales and service network take over where technology provides consistent, managed virtual contact at every online level where consumers want to conduct business. Contact is optimized for communication, convenience, efficiency and promotion of product growth.

43 estrategy Summary #1 Decide on the goal & where you want to go #2 Get the tools in place for service & convenience #3 Create an e place in the organization #4 Set corporate goal to collect customer contact points #5 Drive messaging towards one-to-one communication #6 Open data for event driven marketing & communications #7 Once open Get Personal Get Local

44 What will the History Channel say about Your CU s Virtual Branch 10 years from now?

45 DigitalMailer s Virtual Branch Contributions Mobile Alerts 2008 Online Surveys 2009 Crisis Managemen t System 2009 Customer Communicatio n Center 2009 Electronic Document Management System 2010 Automatic Relationship Builder Data-driven Ad Engine 2012 Secure Forms 2006 My Virtual StrongBox Engine & Alerts 2002 estatements 2000 DigitalMailer (CUSO established 2000) 250 Credit Unions using DMI 18 over $1 Billion in assets Over 5 million members Multi-factor Authentication 2012 Leeflet 2013

46 Who is DigitalMailer? DigitalMailer, Inc. ( helps banks & credit unions open their largest branch the virtual branch. Using its expertise and today's technology, DigitalMailer helps financial institutions connect with customers in the online channel they prefer, driving consistent, managed messages that are optimized for communication, convenience, efficiency and promotion of product growth. Ron Daly President/CEO ext 102