Digital is rapidly evolving Banking into Consumer-to-Business (C2B) areas, driven by GAFA customer experience, abetted by the concept of Living Services and of liquid customer expectations
Banks will face intense challenge, chiefly through the proliferation of digital initiatives already in place and in need of further investment, and by the shortage of necessary specialized, Digital skills: we estimate 80% of current banking revenues could be delivered through different business models by 2020
Banks need to make speedy decisions on “pivot points” and key Digital Agenda areas, namely:
Define the roles they wish to play across Financial Services: typically combinations of Relationship player, Platform provider, Core FS Manufacturer, Digital ID enabler, Innovation playmaker
Select the businesses to focus, including:
Digitally-powered financial platforms, providing easy and simple experiences. Platforms are typically by segment (i.e. Affluent, Small Business, Corporate and also Millennials, etc.)
Experiential Living Services addressing core Customer needs, leveraging Internet of Things as appropriate (i.e. Housing, Healthcare, Travelling)
New Businesses, like launch of Digital Attacker, Digital VAS for SMEs and Corporates, Data Monetization, etc.)
This portfolio of business initiatives is developed to provide not only new revenue streams but also to multiply customer interactions/ touch-points, and generate value for the Bank through cross- and up-sell opportunities for digitally-powered financial propositions
Deploy key enablers, such as Digital Culture, skills and organization; Liquid Customer Engagement and CRM, Digital IT Architecture and End-to-End Process Digitization
These decisions will warrant the need to consider objectively the starting point (skills, technology, etc.), the business direction (new customer/ geo segments, etc.) and the range of the opportunity (competition, where the money will be)
Additionally, articulating the Digital Agenda will highlight the need for coopetition strategies
With FinTechs – in view of the “pivot points” focused upon
With Digital leaders such as GAFA, to engage customers where they spend time (and money)
Key steps in the journey include:
Statement of Strategic Direction
Designing Digital Agenda
Set-up/ update Digital Governance
Digital Execution
We believe there is significant and compelling value for Banks to follow this path, at speed:
Remain at the centre of customers’ lives and needs
Access new revenue opportunities
Stave off impending competitive forces
Develop “exponential” business models – to eventually develop new opportunities, quickly
Accenture can support Banks in this complex journey by bringing to the table an arsenal of visions, assets, capabilities, access to innovation sources, together with industrialized managed services to act as accelerators.
Contributes to Brand Perception --Search results for the world’s top 20 brands are links to user-generated content
Expects Businesses to Share-Back Value -- US Consumers likely to abandon an online purchase if an answer to an online purchase is not immediately forthcoming
Influences Others Purchasing Decisions -- UGC-based campaigns proven are 20% more influential on purchasing decisions than any other type of media and marketing professionals
Mobile Oriented --Smartphone owners that use their phone for shopping purposes
Participates and Has a Voice -- Customers prefer online ratings and reviews to advices from store employees
Socially Connected -- Of mobile time is spent on social media accounts
C2B ON THE GROUND
Google AdSense allows for revenues/profits to be attributed to bloggers/ webmasters
Apple allows for app developers to extend the functionality of their phone/tablet hardware
Facebook enables consumers to share massive user generated content
Amazon enables customers to review products and rate merchant
1. Clearly articulated Digital Agenda with shared priorities and clear targets
2. Disseminated Digital Culture across the organization
3. Business objectives aligned with key levers and clear accountability
4. Speed of execution
5. E2E process transformation – aligned with Customer Journey simplification
6. Digital performance management, starting with Customer indicators
7. Enabled technology platform to provide reach and flexibility
8. Governance set-up reflects new needs