Retail banking: Transforming for the Digital Age

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Katherine Gilmore
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About Ovum Ovum is a global technology analyst house, headquartered in the UK The Financial Services Technology team focuses on trends across the

2 About Ovum Ovum is a global technology analyst house, headquartered in the UK The Financial Services Technology team focuses on trends across the industry as a whole, but has three distinct groups: Retail banking Payments Insurance Copyright Ovum. All rights reserved. Ovum is part of Informa Group. 2

2015 is seeing innovation and competition strengthen in the retail banking sector Retail

External pressures are putting a greater

4 External pressures are putting a greater emphasis on the level of enhancement banks need to deliver Consumer expectations Regulatory change PSD2/X2SA Competition Need to drive efficiency $3.1bn Fintech deals Q4 14* 8% Highest RoE for a UK retail bank in 2014 ** * Source: CB Insights ** Source: Deloitte Copyright Ovum. All rights reserved. Ovum is part of Informa Group. 4

Digital channels are the key investment priorities for 2015 Global IT investment

Banks are looking to drive a consistent and personal experience across channels and products Bank

7 Within the digital channels, investment is focussed on enhancement and UX/security IT investment priorities in digital banking platforms Copyright Ovum. All rights reserved. Ovum is part of Informa Group. 7

8 Now is not the time for sticking plasters; investments need to be part of a long term transformation plan Class leading Customer-Adaptive CEO, board level sponsorship, enterprise-wide commitment Focused on: Customer Experience Omnichannel CX CEO, board level sponsorship, enterprise-wide commitment Multichannel Basic integration between systems but siloed mentality and product/cost driven Departmental Customer journey s mapped Integrated channels Context 360 New business models Continuous innovation Anticipating the future Disruptive force Departmental silos, Fragmented CX Poor Absent Coherence as an organisation Pervasive Copyright Ovum. All rights reserved. Ovum is part of Informa Group. 8

9 At the heart of this is the need to understand the customer and use data to better serve their needs Demographic Non-financial habits and preferences Financial Responsive, contextualised customer experience Copyright Ovum. All rights reserved. Ovum is part of Informa Group. 9

Digital transformation can only be truly delivered with investment in the core

12 Providing banking services in the digital era Dharmesh Mistry, UXP Director - Temenos 1 st July 2015

13 Focusing on Customer Intimacy CUSTOMER INTIMACY Customer Responsive PRODUCT LEADERSHIP Product Differentiation STRATEGIC FOCUS OPERATIONAL EXCELLENCE Operational Efficiency 13

14 Focusing on Customer Intimacy CUSTOMER INTIMACY Customer Responsive PRODUCT LEADERSHIP Product Differentiation Segment target customers and fine tune offers to each segment/individual Design products and STRATEGIC services FOCUS to encourage long term customer loyalty Differentiate through innovation, rich and compelling experiences Maximise their reach through digital channels Make decision based on lifetime value of customer Deeply engage customers to design product/services that meet OPERATIONAL customer needs EXCELLENCEOperational Efficiency 14

15 Temenos Solutions for the new banking landscape Consistent superior user experience across all channels Fast time to innovate / market Any time, any where, any device banking Right offer, at the right time, via the right channel Omni-Channel User Experience Experience Driven Banking Innovative Product and Pricing Engine Relationship based pricing based on customer segmentation Multiple pricing strategies enabling flexibility Customer Insight driving customer centric products & services Predictive modelling driving cross selling, loyalty and profitability Intelligent Data Analytics Real time data driving contextual offers and services Analytics driving pro-active customer engagement and added value 15

16 Digital Engagement - manage entire lifecycle through any channel/device Brand Marketing Sales Service Awareness Knowledge Consideration Selection Service Satisfaction Advocacy Loyalty Banner Ads SEO Website Social pages Webinars Video Review sites Comparison Webinars Hosted Chat On Boarding Hosted Chat Internet and Mobile Banking Payments Surveys Support Forum Support Chat Referrals Special discounts Value added content Content Mgt Content Mgt Social UCC Gamificaton Content Mgt Apps UCC Content Mgt Apps PFM UCC Apps PFM UCC Social Loyalty Mgt PFM Social Loyalty Mgt Gamification PFM Offers Social Loyalty Mgt Gamification 16

17 Digital Engagement - manage entire lifecycle through any channel/device Brand Marketing Sales Service Awareness Knowledge Consideration Selection Service Satisfaction Advocacy Loyalty Banner Ads SEO Website Social pages Webinars Video Review sites Comparison Webinars Hosted Chat On Boarding Hosted Chat Internet and Mobile Banking Payments Surveys Support Forum Support Chat Referrals Special discounts Value added content Content Mgt Content Mgt Social UCC Gamificaton Content Mgt Apps UCC Content Mgt Apps PFM UCC Apps PFM UCC Social Loyalty Mgt PFM Social Loyalty Mgt Gamification PFM Offers Social Loyalty Mgt Gamification CRM CMS Analytics User Experience Platform (Apps) Mobile (digital channels) Core to this framework are: Unified communication & Collaboration (UCC) Gamification PFM / Offer management Loyalty Social 17

18 Kiosk ATM Web Mobile IVR Branch W W W Customer Interactions Digital Engagement 18 Customer Insights Customer Decisions Products

19 Customer Identification WEB Cookies Beacons Social ID s BIOMETRIC Fingerprint Heart beat Facial recognition??? Token DEVICE IMEI Machine name IP Address DATA Name Password Memorable questions PIN 19

20 Channel Communication Opportunity Rewards and Offers Advice Personalisation UX Optimisation 20

21 Channel Feedback Voice Text Click Stream 21

22 Technologies driving digital engagement CRM Customer Product Core Banking Channel PFM CRM Campaign Execution Branch Contact Centre Internet Mobile Post 22

23 Technologies driving digital engagement CRM Customer Product Core Banking Channel PFM CRM CMS Campaign Execution Content Targeting test Branch Contact Centre Internet Mobile Post 23

24 Technologies driving digital engagement CRM Customer Product Core Banking Channel PFM CRM CMS PFM Campaign Execution Content Targeting test Recommend Branch Contact Centre Internet Mobile Post 24

25 Technologies driving digital engagement CRM Customer Product Core Banking Channel PFM CRM CMS PFM Loyalty Gamification UX Optimisation Marketing Optimisation Campaign Execution Content Targeting test Recommend Points Scheme Game mechanics Behavioural optimisation Split AB & MVT testing Branch Contact Centre Internet Mobile Post 25

26 Digital banking architecture Kiosk ATM Web Mobile IVR Branch W W W User Experience Platform Presentation Process Integration Third Third Third Party Party Party Marketing Front Office Sales Order Management Service Analytics Core Banking Corporate Retail Private Treasury Payments Transaction Reporting 26

Digital banking architecture Kiosk ATM Web Mobile IVR Branch W W W User Experience Platform Presentation Process Integration Third Third Third Party Party

27 Digital banking architecture Kiosk ATM Web Mobile IVR Branch W W W User Experience Platform Presentation Process Integration Third Third Third Party Party Party Marketing Front Office Sales Order Management Service Analytics Core Banking Corporate Retail Private Treasury Payments T24 Transaction Reporting 27

28 Digital banking architecture Kiosk ATM Web Mobile IVR Branch W W W Connect User Experience Platform Presentation Process Integration Third Third Third Party Party Party Marketing Front Office Sales Order Management Service Analytics Core Banking Corporate Retail Private Treasury Payments T24 Transaction Reporting 28

29 Digital banking architecture Kiosk ATM Web Mobile IVR Branch W W W Connect User Experience Platform Presentation Process Integration Third Third Third Party Party Party Marketing Front Office Sales Order Management Service Analytics Core Banking Corporate Retail Private Treasury Payments T24 Transaction Reporting Insight 29

30 So what are leading banks doing that s giving them a competitive advantage Integrating all their data single customer view Inter-connecting all their channels multi channel capabilities Creating a single brain to determine what to offer to each and every customers and when using insights, predictive models and triggers creating personalised offers (price, term, amount etc) Feeding these offers to all channels Ready for the customer to arrive Observing and responding to customer behaviour in each channel in near real time Measuring what works, learning and iteratively improving continuously 30

31 Temenos Solutions for the new banking landscape Consistent superior user experience across all channels Fast time to innovate / market Any time, any where, any device banking Right offer, at the right time, via the right channel Omni-Channel User Experience Experience Driven Banking Innovative Product and Pricing Engine Relationship based pricing based on customer segmentation Multiple pricing strategies enabling flexibility Customer Insight driving customer centric products & services Predictive modelling driving cross selling, loyalty and profitability Intelligent Data Analytics Real time data driving contextual offers and services Analytics driving pro-active customer engagement and added value 31

32 Thank you

Temenos Regional Forums. 24 July 2018 Sydney, Australia

Temenos Regional Forums. 24 July 2018 Sydney, Australia Temenos Regional Forums 24 July 2018 Sydney, Australia Conversational Customer Engagement Dharmesh Mistry, Chief Digital Officer, Temenos Tuesday, 24 th July 2018 Agenda 1 Banking is changing 2 Conversational