Engagement Banking Strategy by Michael Degnan
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This document discusses engagement banking, which uses technology to achieve both customer intimacy and scale. It emphasizes using customer data and insights to provide personalized experiences across channels. The four pillars of engagement banking are outlined as next generation online banking, multi-channel experiences, digital customer acquisition, and digital communities. Key aspects include strong user experience design, data-driven products, and treating channels as agnostic to provide a unified customer experience.
Engagement Banking Strategy by Michael Degnan
- 1. Engagement Banking Strategy Backbase Webinar Series January 27, 2010
- 2. What is Engagement Banking? For further reading, download our white paper: The Future of Banking is Engagement Banking
- 3. Today… © 2011 SapientNitro Thanks:
- 4. Scale and Efficient Operations Customer Intimacy © 2011 SapientNitro
- 5. Scale and Efficient Operations Technology Customer Intimacy © 2011 SapientNitro
- 6. Scale and Efficient Operations Engagement Banking Technologies Customer Intimacy © 2011 SapientNitro
- 7. Engagement Banking is a new marketing, sales and service model that deploys Technology to achieve both Customer Intimacy and Scale © 2011 SapientNitro
- 8. 1. Your ability to collect customer data, turn that data into insight and effectively disseminate that insight 2. The appropriate channels that align with a customer’s convenient behavioral patterns 3. A strong user experience design © 2011 SapientNitro
- 9. Engagement Banking Market Framework Consumer Behavior Business Environment Customer Experience Banking EB Technology Marketing © 2011 SapientNitro
- 10. How are customers behaving today?
- 11. Customers want Digital Most consumers now touch their bank digitally, and outside the branch network Internet Banking 36% ATM 15% Mobile 3% Digital 54% Source: American Banker Association, Preferred banking method survey, September 2010 © 2011 SapientNitro
- 12. “Digital” will increasingly mean “mobile” Source: American Banker, Javelin Research, October 2009 © 2011 SapientNitro
- 13. Customers rarely set foot into a branch. © 2011 SapientNitro Image: http://www.installations.org techny.com
- 14. Cash from the ATM… the one thing they can’t do digitally © 2011 SapientNitro
- 15. But only for a few more months. NFC © 2011 SapientNitro
- 16. So, what do consumers want?
- 17. Consumers want… Personalized information and content To connect with the brands they custom, and be valued for it To have access to their financial information and banking services, 24/7, across multiple channels To have a problem resolved quickly and for the first time © 2011 SapientNitro
- 18. The Four Pillars of Engagement Banking 1. Next Generation Online Banking Experience 2. Multi-channel Client Experience 3. Digital Customer Acquisition 4. Digital Community Development © 2011 SapientNitro
- 19. 60% of checking accounts are likely to become unprofitable. The Boston Consulting Group, 2010
- 20. Profits are generated in three ways 1. Revenue expansion 2. Increasing asset productivity 3. Cost reduction Engagement Banking powers all three levers
- 21. What an Engagement Bank Looks Like
- 22. Traditional banks are organized around silos Alternative Retail / Branch Call Center ATM Online Mobile Customer Management Onboarding Strategy Marketing Analytics Product Services Instruments Origination Pricing Deposits / Accounts Lending Strategy Compliance, etc. Cards Wealth, etc. Enterprise Services Corporate Operations Finance Fraud / AML Treasury Technology Payments © 2011 SapientNitro
- 23. Engagement Banks are channel-independent Channels are agnostic, and supported by shared, customer-focused business services Customer context is delivered throughout the organization Channels Retail / Branch Website Mobile ATM / Kiosk Call Center Business Model Services Customer Context Customer Context Branding / Sales Onboarding Relationship Management / Servicing Transitioning Marketing Product Services Instruments Enterprise Services © 2011 SapientNitro
- 24. Customers are already channel- independent Image: peopleseconomics.com
- 25. Discovery Initiation Engagement Re-evaluation The customer’s journey defines the experience Engagement Banking is about reorganizing traditional banking activities to engage and empower customers through a compelling sales, product or service experience
- 26. Discovery Initiation Engagement Re-evaluation Triggers Investigation Marketing and Brand. Pre-sales. Moments of clarity and inspiration Initial research into the benefits of a financial need. of a banking brand, products and services… and what the peer network says. © 2011 SapientNitro Image: http://jonathanbaldwin.blogspot.com
- 27. Discovery Initiation Engagement Re-evaluation Trial Onboarding Sales activities The traditional onboarding process. The customer assesses how a Purchase product or brand’s abilities Decision meet their individual needs.
- 28. Discovery Initiation Engagement Re-evaluation View Understand Manage View your financial Make sense of what Gain clarity and life. Assemble a I’m doing and a plan control, and make personal balance for what to do next. transactions to sheet to develop a implement change. complete picture. Evaluate Continually evaluate how my financial solutions help with my continually changing life.
- 29. Discovery Initiation Engagement Re-evaluation Relationship Closure Repositioning Activities to close or transfer a Identifying products that are financial relationship, including better alternatives than what’s account closure and feedback. currently implemented
- 30. Engagement Banking Business Framework Customer Experience Framework Discovery Initiation Engagement Re-evaluation Channels Retail / Branch Website Mobile ATM / Kiosk Call Center Business Model Services Customer Context Branding / Sales Onboarding Relationship Management / Servicing Transitioning Marketing Engagement Product Bank Services Instruments Customer-centric Services & Functions Enterprise Services Standard Bank Products, Services & Functions © 2011 SapientNitro
- 31. How to Implement Engagement Banking
- 32. The Four Pillars of Engagement Banking 1. Next Generation Online Banking Experience 2. Multi-channel Client Experience 3. Digital Customer Acquisition 4. Digital Community Development © 2011 SapientNitro
- 33. Next Generation Online Banking Experience Applying professional-grade data visualization techniques…. © 2011 SapientNitro
- 34. … can provide financial context to consumers. © 2011 SapientNitro Image: Mint.com
- 35. Next Generation Online Banking Experience PFM is really about bringing business-class reporting and analysis down the food chain to consumers. Image: Mint.com
- 36. Strong User Experience DesignExperience Design… Strong User across every channel Most desired information readily Most recent first, for fast A design that focuses on the user experience means available updates… a different “What’s my account balance?” financial the check clear?” approach to delivering “Did information. Personalization is a major trend in modern design The most relevant and convenient information, to that person, is allowed to be surfaced and made easily accessible. Visualization to provide context at-a-glance. “How am I doing?” © 2011 SapientNitro
- 37. … across every channel Source: IDEO © 2011 SapientNitro
- 38. Multichannel Client Experience SapientNitro Engagement Banking Digital Whitepaper http://engagementbanking.sapient.com © 2011 SapientNitro
- 39. Digital Customer Acquisition Real-time campaign management and adjustments, based on active tracking and monitoring of consumer behaviours © 2011 SapientNitro
- 41. Data Intelligence in Customer Service and Support
- 42. Digital Community Development Image Source: It’s a Wonderful Life, 1946
- 43. © 2011 SapientNitro Image Source: jasocal.org
- 44. Digital Community through Social Networking Image Source: O’Reilly
- 45. Customer Intimacy at Scale © 2011 SapientNitro
- 46. Summary
- 47. Engagement Banking Market Framework Consumer Behavior Business Environment Customer Experience Banking EB Technology Marketing © 2011 SapientNitro
- 48. Engagement Banking Business Framework Customer Experience Framework Discovery Initiation Engagement Re-evaluation Channels Retail / Branch Website Mobile ATM / Kiosk Call Center Business Model Services Customer Context Branding / Sales Onboarding Relationship Management / Servicing Transitioning Marketing Engagement Product Bank Services Instruments Customer-centric Services & Functions Enterprise Services Standard Bank Products, Services & Functions © 2011 SapientNitro
- 49. The Four Pillars of Engagement Banking 1. Next Generation Online Banking Experience 2. Multi-channel Client Experience 3. Digital Customer Acquisition 4. Digital Community Development © 2011 SapientNitro
- 51. FOUNDED IN FOUNDED IN 1990,, PUBLICLY TRADED SINCE 1996 (NASDAQ: PUBLICLY TRADED SINCE (NASDAQ: SAPE) SAPE) HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN INDIA INDIA 35 OFFICES WORLDWIDE 35 OFFICES WORLDWIDE UNIQUE UNIQUE LARGEST INDEPENDENT INTERACTIVE AGENCY IN THE LARGEST INDEPENDENT INTERACTIVE AGENCY IN THE WORLD, with WORLD, with INDUSTRY LEADING STRATEGY & TECHNOLOGY CONULTING INDUSTRY LEADING STRATEGY & TECHNOLOGY CONULTING 2009 REVENUE OF US$639M REVENUE OF US$639M END-TO-END SERVICE OFFERING, WITH COLLABORATIVE AND AGILE APPROACH END-TO-END SERVICE OFFERING, WITH COLLABORATIVE AND AGILE APPROACH
- 52. Thank You INSIGHTS Expertise in research, We are analytics, brand & user experience, wealth management, and global markets IDEAS Ideas born of insights. Our creative department consists of designers, writers, IAs, strategists, account managers and technologists S REALIZATION Michael Degnan People that can execute Engagement Banking Lead on ideas from a SapientNitro Financial Services Center of Excellence customer experience, [email protected] | @mdegnan operational and technical perspective supported by world http://engagementbanking.sapient.com class program #engagementbanking management and collaborative approach © 2011 SapientNitro
Editor's Notes
- #51: And now, a short word about who we are…