A 'Digital First' mindset is fundamental for financial services providers focused on significantly enhancing customer satisfaction, building customer loyalty and deepening share of wallet. In this joint Accenture and Backbase webinar, Joydeep Bhattacherya, Managing Director at Accenture and Jouk Pleiter, CEO & Co-Founder at Backbase will talk about how banks can adopt a Digital First strategy and will focus on how to create a Amazon-like post-login banking experience.

1. New
Banking
Distribu1on
Models
August
2013

2. Copyright © 2013 Accenture All rights reserved. 2
Joydeep
(Joy)
Bha6acharya
Digital
lead,
Financial
services
EALA
Accenture
InteracCve
j.a.bha6acharya@accenture.com
Intros

3. Copyright © 2013 Accenture All rights reserved. 3
Agenda
Macro
trends
affec1ng
banking
Industry
Emerging
models
Next
genera1on
concepts
The
intelligent
mul1channel
bank
The
digital
ecosystem
bank
The
socially
engaging
bank

4. Copyright
©
2013
Accenture
All
rights
reserved.
4
Industry
challenges
are
moving
banks
toward
a
re-­‐inven1on…
• DifferenCaCng
services
in
an
increasingly
commodiCzed
market
• Defending
payment
services
against
new,
emerging
compeCCon
• Restoring
customer
trust
and
engagement
• Providing
a
tailored
and
relevant
customer
experience
• Developing
mobile
channels
into
a
sales,
rather
than
service,
tool
• Achieving
a
return
from
investment
in
social
media
• Maintaining
margins
in
commodity
product
lines
• ArCculaCng
a
clear
digital
vision
across
web,
social
and
mobile
• Leveraging
customer
data
efficiently
and
compeCCvely
• Evolving
legacy
technology
to
compete
with
newer
firms
Retailiza1on
Customer
experience
Technology
adop1on
Creates
a
need
for
new
banking
models
ChallengesTransformation drivers

5. Copyright
©
2013
Accenture
All
rights
reserved.
5
3
New
Priori1es
for
Transforma1on
…
1 The
Intelligent
Mul1channel
Bank
Go
Analy1cal
Strategically
apply
analyCcs
to
more
effecCvely
meet
customers’
financial
needs
3 The
Socially
Engaging
Bank
Go
Social
Leverage
social
media
interacCons
to
increase
customer
inCmacy
2 The
Digital
Ecosystem
Bank
Go
Mobile
Become
the
centre
of
an
ecosystem
–
powered
by
mobile
–
selling
financial
and
non-­‐financial
services

6. Copyright
©
2013
Accenture
All
rights
reserved.
6
The
Intelligent
Mul1channel
Bank
Go
Analy1cal
Advanced
mulCchannel
integraCon,
focusing
on
digital
Pervasive
analyCcs
uClising
customer
data,
microsegmentaCon
and
predicCve
modeling
Real
Cme
interacCons
management
for
increased
conversion
rates
Product
offerings
and
pricing
schemes,
based
on
microsegments
and
opCmized
by
channel
Remote
advisory
services
Strategically
apply
analy1cs
to
more
effec1vely
meet
customers’
financial
needs

7. Copyright
©
2013
Accenture
All
rights
reserved.
7
Customer
needs
Customer
experience
(based on
interaction
with the bank)
Channels
Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7
Onboarding / Fulfillment Processes
Products
Improved
Sales Funnel
Channels
Customer 1 desired experience
Customer 2 desired experience
Sequence of lower cost for the bank
Actions to re-channel customer experience
(Values / Convenience / Pricing)
The
Intelligent
Mul1channel
Bank
Crea1ng
mul1channel
lean
experiences

8. Copyright
©
2013
Accenture
All
rights
reserved.
8
Intelligent
Bank
capabili1es
A real-time data engine drives customer touch-points based on a wide range of
data sources
BRANCH
CALL
CENTER
WEBSITE
MOBILE
APP
/
SMS
EMAIL
DIRECT
MAIL
BRANCH
CALL
CENTER
WEBSITE
MOBILE
APP
/
SMS
EMAIL
DIRECT
MAIL
Outbound
Inbound

9. Copyright
©
2013
Accenture
All
rights
reserved.
9
The
Digital
Ecosystem
Bank
Go
Mobile
Become
the
centre
of
an
ecosystem
–
powered
by
mobile
–
selling
financial
and
non-­‐
financial
services
Mobile
payments,
based
on
Near
Field
CommunicaCon
or
mobile
wallet,
enhance
bank
compeCCveness
and
customer
retenCon
Mobile
markeCng,
loyalty
and
analyCcs
enrich
proposiCons
through
mobile
commerce
Managing
alliances
and
partnerships
with
non-­‐banking
operators
Powered
by
set
of
founda1onal
digital
capabili1es

10. Copyright
©
2013
Accenture
All
rights
reserved.
10
Rise
of
Ecosystems
Ecosystems
provide
banks
with
the
opportunity
to
enrich
their
customer
insight
and
therefore
personalize
proposi1ons
“How
to
manage
my
money/
my
transac1ons/
marketplace”
ecosystem
“Share
experience”
ecosystem
“Connect
me”
ecosystem
“Now
discover”
stuff
ecosystem
“Help
for
searching
for
stuff”
ecosystem

11. Copyright © 2013 Accenture All rights reserved. 11
What
could
the
Bank
Ecosystem
look
like?
Customers
Merchants
Bank
• MulCchannel
pla`orm
aggregaCng
merchant’s
proposiCon
• TransacCons-­‐based
analyCcs
• Digital
markeCng
support
• Extend
Customer
reach
with
a
trusted
brand
• Maximize
Customer
contact
capability
• Access
to
digital
markeCng
through
customizable
loyalty
programs
• “One
stop
shop”
to
saCsfy
mulCple
Customer
needs
• Selected
and
targeted
offering
driving
loyalty
• Combines
online
and
offline
proposiCon,
improving
customer
experience
• AddiConal
channel
for
Customer
pull
• New
revenues
streams
from
non-­‐
financial
products
• Allows
e-­‐sell
of
the
e-­‐commerce
infrastructure

12. Copyright
©
2013
Accenture
All
rights
reserved.
12
Bank
of
America
integrates
3rd-­‐party
discounts
and
offers
into
online
banking
§ Customized
discount
offers
embedded
in
users’
statements
Bank
of
America’s
BankAmeriDeals
evaluates
customer
card
spending
and
offers
discounts
based
on
previous
purchases
made
in
commercial
stores
§ Internet
banking
site
offers
personalized
offers
throughout
the
user
experience
§ Deals
first
offered
to
employees
for
feedback
before
opening
the,
up
to
its
customer
base

13. Copyright
©
2013
Accenture
All
rights
reserved.
13
Alternate
means
of
banking
at
Garan1
Turkey’s
Garan1
Bank
and
mobile
phone
operator
Turkcell
have
teamed
up
with
MasterCard
to
launch
a
prepaid
SIM
card
called
Cep-­‐T
Para
• Can
be
used
at
any
store
accepCng
MasterCard
• Available
at
any
Turkcell
CommunicaCon
Center
• Load
money
to
the
card
using
any
GaranC
ATM
• Combines
mobile
and
banking
services
• SIM-­‐based
secure
service
that
can
be
used
with
any
mobile
handset
device
• Turkcell
customers
access
payment
systems
offered
by
GaranC
Bank
without
being
a
direct
bank
customer
With
the
launch
of
this
new
prepaid
card
service,
Garan1
plans
to
gain
1.5
million
addi1onal
unbanked
customers
within
the
next
three
years

14. Copyright
©
2013
Accenture
All
rights
reserved.
14
The
Socially
Engaging
Bank
Go
Social
Leverage
social
media
interac1ons
to
increase
customer
in1macy
Social
media
monitoring
to
engage
customers,
miCgate
risks
and
promptly
react
to
issues
Social
digital
marke1ng
to
define
the
best
content
for
individual
customer
profiles
and
a6ract
them
Social
CRM
to
enrich
customer
data
with
social
media
informaCon,
facilitaCng
more
effecCve
proposiCons

15. Copyright
©
2013
Accenture
All
rights
reserved.
15
The
Socially
Engaging
Bank
Go
Social
Top
Areas
of
Interest
Ini1a1ves
SOCIAL
CUSTOMER
SERVICE
SOCIAL
BANKING
P2P
TRANSACTIONS
Customer
Service
on
Twi_er
Online
bank
account
integra1on
on
Facebook
P2P
Payments
via
digital
wallet
Integrated
CRM
module
for
Twi_er
and
Facebook
Virtual
Branch
on
Facebook
Social
Banking
and
Payment
integra1on
P2P
Payments
via
bank
account
integra1on
Social
goal
seang
/
Crowdfunding

16. Copyright
©
2013
Accenture
All
rights
reserved.
16
Social
media
transforma1on
journey
Test,
learn
&
refine
Build
communi1es
Create
audience
with
several
communiCes
aggregated
on
relevant
interests/
topics
Engage
Users
Have
on
going
business
interacCons
with
Social
Media
users
Drive
business
Achieve
results
integraCng
Social
Media
as
an
engaging
layer
(“service
pla`orm”)
Listen
Collect
relevant
feedback
to
feed
other
key
components
and
tune
iniCaCves
Brand
Product
Customers
Ini1a1ves
■ Understand
your
posiCon
(brand
&
products)
■ Leverage
influencers
■ Address
customer
needs
and
complaints
■ Develop
new
offerings
■ Collect
relevant
data

17. Copyright
©
2013
Accenture
All
rights
reserved.
17
Social
media
transforma1on
journey
Test,
learn
&
refine
Build
communi1es
Create
audience
with
several
communiCes
aggregated
on
relevant
interests/
topics
Engage
Users
Have
on
going
business
interacCons
with
Social
Media
users
Drive
business
Achieve
results
integraCng
Social
Media
as
an
engaging
layer
(“service
pla`orm”)
■ by
products
■ by
financial
need
■ by
non
financial
need
■ by
customer
segment
■ Q
&
A
sessions
■ “Offline”
caring
aier
online
intercepCon
■ Customer
care
■ Contests
(to
get
influencers)
■ “Edutaining”
videos
■ Entertaining
apps/
videogames
■ Virtual
Branch
■ Product
development
■ IniCaCves
leveraging
virality
(e.g.
member
get
member)
■ IniCaCves
leveraging
“social
informaCon”
■ LocaCon
based
iniCaCves
Listen
Collect
relevant
feedback
to
feed
other
key
components
and
tune
iniCaCves
■ Overall
posiConing
■ Overall
senCment
about
exisCng
or
new
products
■ CollecCon
of
feedback
about
iniCaCves
■ IntercepCon
of
customer
complains
■ Enrich
customer
profile
by
collecCng
customer
interests
Brand
Product
Customers
Ini1a1ves
■ Understand
your
posiCon
(brand
&
products)
■ Leverage
influencers
■ Address
customer
needs
and
complaints
■ Develop
new
offerings
■ Collect
relevant
data

18. Copyright
©
2013
Accenture
All
rights
reserved.
18
Infusing
social
media
concepts
into
banking
at
Fidor
Bank
• P2P
lending
through
crowdfunding
• Online
beang
pladorm
for
short-­‐term,
low-­‐value
stock
market
trading
• Saving
account
interest
rates
based
on
number
of
Likes
on
bank
Facebook
page
• Describing
itself
as
“banking
with
friends”,
Fidor
allows
customers
to
register
through
Facebook
Connect
Fidor
Bank
AG,
a
German
100%
online
bank,
leverages
social
media
for
its
day-­‐by-­‐day
ac1vi1es.

19. Copyright
©
2013
Accenture
All
rights
reserved.
19
Moven
using
social
media
reputa1on
in
credit
scoring
• CRED
score
used
to
make
decisions
about
services
and
pricing
• e.g.
improving
CRED
scores
earn
the
right
to
checking
account
with
overdrai
protecCons
• Mobile
phones
used
as
primary
payment
devices,
replacing
credit/debit
cards
and
cash
• Visual
personal
financial
management
tool
• Introduced
financial
health
score,
CRED,
uClizing
the
social
media
reputaCon
of
the
customer.
Moven
is
an
innova1ve
New
York-­‐based
start-­‐up.
All
transac1ons
are
conducted
online
or
through
mobile
devices.
Uses
social
media-­‐derived
scores
to
determine
pricing
and
access
to
products.

20. Copyright
©
2013
Accenture
All
rights
reserved.
20
UBANK
-­‐
Crea1ng
a
stand-­‐alone
website
to
compare
users
spending
habits
in
Australia
• PeopleLikeU
is
a
stand
alone
website
which,
relying
on
a
dataset
made
by
historical
informaCon
from
NaConal
Australia
Bank,
allows
users
to
compare
spending
habits
in
a
precise
area
• This
website
enables
Australians
to
select
their
Once
selected
the
profile,
this
tool
provides
specific
staCsCcs
on
sample
expenditures,
giving
informaCon
on
different
categories
such
as
uCliCes,
shopping,
housing,
food
and
travel:
users
can
therefore
have
specific
informaCon
about
spending
level
in
a
precise
area,
for
example
knowing
how
much
does
a
similar
profile
spend
for
housing
in
the
same
postcode
zone
UBank,
a
Na1onal
Australia
Bank
group
ins1tute,
has
developed
PeopleLikeU,
an
econographic
tool
which
allows
Australian
to
compare
finances
and
spending
habits

21. Next-­‐genera1on
online
banking
The
characteris1cs
of
a
future-­‐looking
OLB
experience
Analy1cal
Using
all
of
the
informaCon
about
a
customer
to
their
advantage,
creaCng
a
deep
and
intuiCve
understanding
of
their
goals
Social
Leveraging
the
power
of
a
customer’s
social
network
to
create
a
greater
personal
inCmacy
Experience-­‐led
Focusing
on
fulfilling
a
customer’s
needs,
rather
than
selling
banking
products
Ecosystem
A
network
of
partnerships,
both
financial
and
non-­‐financial,
seamlessly
integrate
a
customer’s
banking
acCviCes
with
the
rest
of
their
day-­‐to-­‐day
life

22. What
might
a
next-­‐genera1on
experience
look
like?
Clients
will
demand
new
capabili1es
and
func1ons
• A
customer-­‐centric
user
experience
that
engages
on
an
emoConal
level
• A
consistent,
joined-­‐up
service
across
any
channel
or
device
• Mul1ple
channels
of
help
and
assistance
Managing
Money
Ecosystems
Superior
Service
• Highly
relevant,
targeted
content
• Online
tools
that
help
a
customer
achieve
their
goals
• Predict
and
an1cipate
customer
demands
• Understand
a
customer’s
social
circumstances
and
connecCons,
• Build
a
wide
network
of
partnerships
Atomised
• Make
func1ons
available
beyond
the
bank’s
web
site
• Take
advantage
of
emerging
consumer
technology