commonwealth bank of australia daily iq ccs 002 ...€“ccs...multi-bank rfp driven relationships,...

© Internal Consulting Group 2015 CCS - Certified Case Study

COMMERCIAL IN CONFIDENCE

Commonwealth Bank of Australia Daily IQ CCS 002 – Certified Case Study

April 2014



2

Confidentiality Our clients’ industries are extremely competitive. The confidentiality of companies’ plans and data is obviously critical. ICG will protect the confidentiality of all such client information. Similarly, management consulting is a competitive business. We view our approaches and insights as proprietary and therefore look to our clients to protect ICG’s interests in our proposals, presentations, methodologies and analytical techniques. Under no circumstances should this material be shared with any third party without the explicit written permission of ICG.

Disclaimer ICG has made good faith efforts to ensure that this material is a high-quality publication. However, ICG does not warrant completeness or accuracy, and does not warrant that use of the material ICG’s provisioning service will be uninterrupted or error-free, or that the results obtained will be useful or will satisfy the user's requirements. ICG does not endorse the reputations or opinions of any third party source represented in this material. Every effort has been made to ensure information in this case study is as accurate as possible. If anyone is able to improve it in any way please contact the Author of this CCS (Giorgio Baracchi) and provide your suggestions : [email protected]

Copyright Notice While third party materials have been referenced and analysed in this material, the content represents the original work of ICG's personnel. This work is subject to copyright. ICG is the legal copyright holder. No person may reproduce this material without the explicit written permission of ICG. Use of the copyright material in any other form, and in any medium whatsoever, requires the prior agreement in writing of the copyright holder. The user is allowed ‘fair use’ of

Certification ICG works for many clients around the world. ICG certifies that its review of this Case Study confirms that it contains only material that has been sourced through public sources and mystery shopping. The author(s) have similarly certified to ICG that this is the case. If anyone can identify any information that is in this CCS, that does not satisfy this test, please contact ICG immediately.



Agenda

3

Section Component Description

1 Overview •  Daily IQ - What is it? •  Why the Daily IQ is an ICG Certified Case Study

2 Context •  How does it fit into the Business Model •  Global market (peers and substitutes)

3 Detailed Description •  Three core areas where Daily IQ helps SMEs •  Mystery Shopping

3 Relevant Media •  Media coverage and relevant quotes

4 Marketing Collateral and Brochure ware

•  iPad screenshots •  FAQ session •  User guide

5 Appendix •  Other ICG source of insights



CBA’s Daily IQ - allowing SMEs to make higher quality decisions with “rich insight” for their businesses

It's a powerful new app powered by CBA that gives SMEs a competitive edge: •  Daily transaction data at an SME’s fingertips •  A clear picture of business activity and

opportunities •  Access to important insights about customers to

help identifying potential new targets •  It's secure - it can only be accessed by the

business owner and their authorised staff. •  It’s free for all CommBiz users (iPad version only

for now) •  It is a break-through business tool

4

WHAT IS DAILY IQ? KEY FEATURES

Source: company website



Agenda

5











Daily IQ is one of the tools under the CommBiz umbrella

6

Source: company website, secondary research

KEY INSIGHTS COMMBIZ WEBSITE

•  CommBiz is a banking product suite targeting SME

•  Daily IQ is one of the tools offered under the CommBiz umbrella

•  Daily IQ can only be used if the client is registered with CommBiz



CBA is targeting this product at ‘SME’s –ICG defines the SME segment as follows:

7

Business owner / Finance Director

CFO – Finance Function Main interface

Segment Small

business* Institutional

* Some small businesses with complex needs may also be served by the coverage model typically associated with mid-corporates Source: ICG analysis

Typical Customer Banking Relationship

• Branch staff

• Small business access via branch or digital channels

RM based in Business Banking Centre + Remote Business banking service centre and

HO-based Product Specialists

Centrally based RM + Product Specialists

Turnover $3 - 50m

Mid-corporate / Middle Market

Business owner

Micro businesses

<$3m $50m - $500m >$500m

Financial Institutions

Typical coverage model

• Multi-provider

• Single FSI for transactions

•  Predominantly Single source lending & transaction banking

Multi-bank RFP driven relationships,

consider public markets

Only capital markets & interbank

arrangements

Product specific teams

Bus. Lending Behaviour

> $1M portfolio single bank

<$1m scored single bank

>300M multi-bank

•  Additional banks enter portfolio based on product value

Large Corporate

Source: Business Banking Product Innovation KAR (Available for purchase at the ICG Store)



Traditional Core Banking Products & Services Extended Shelf Financial Products Emerging IT enabled Adjacent Services

Capital Access

Transaction Banking Payment Trade Service Risk Markets Wealth

Std. Loans •  Secured •  Unsecured -  Overdraft -  Line of Credit

Account •  Transaction •  Savings

Cash •  In/Out •  Money Order

Traditional •  Letter of Credit •  Import/Export •  Confirmations

Security & ID •  KYC •  ID / Sign-on •  Device (card)

Derivatives •  Futures •  Swaps •  Other

Foreign Exchange

Fixed term •  Term Deposit •  Bank paper,

Commercial Paper

Market Access •  Social Networking •  Collaboration &

Service clubs •  Foreign market

Introductions

Asset Finance •  Vehicles •  Specialised

Physical Cash •  Business

Deposits •  Lock Box

Debit Pmt •  Bill Present •  Bill Pay •  Direct Debit

Collections •  Invoice finance

Signatures & Authorities •  PKI / signatures

Guarantees •  Stand-by LoC •  Docu. Credit •  Surety (bonds)

Commodities Money Market funds

Education •  Closed •  MOOC

Invoice / Recievables finance

Consolidation •  Sweeping •  Pooling

Credit Pmt •  Credit card •  Corp card

Open Account •  Inventory •  Prepayment •  Collection

Visibility •  Transactions,

balances

General Insurance

Exchange traded instruments

Structured •  Money market •  Trust funds •  ETF’s

Staff Services •  Onboarding •  Payroll

Syndication Control & Advice •  Positive Pay •  Forecasting

Pre-paid •  Travel

Structured trade finance

Advice •  Capital Structuring

Life Insurance Carbon Employee Super Insight •  Benchmarking •  Analytics •  Consulting

Markets •  Equity advice •  Debt issuance

e-Currency Acquiring •  Terminal

Digital services e-Currency

Securities Trading

Software & Platform services •  Supply chain

orchestration •  Trade & Customs

documentation •  Market-places

Daily IQ is a perfect example of an emerging IT enabled adjacency service for Banks Product Class/ Type / Component Taxonomy

8

Note: Features and functions, not displayed on this hierarchy; Including: Price/ fees, Rate type, fee type, Collateral assigned, Purpose & Policy, Payment Structure (F, amount), Statement (form, cycle), involved parties, Direct Debit, Payment exceptions (retry, Extra, Holiday), Portability, Top-up, Re-draw, Progressive draw, Renewal, SmartPay

Source: Business Banking Product Innovation KAR (Available for purchase at the ICG Store)



DIGITAL BUSINESS CONTEXT 2020 DIGITAL PERSONAL CONTEXT 2020

Source: ICG Source: PWC, curated by ICG

Virtual Cloud platforms

Digital Authentication

Algorithmic people, time and place coordination

Multiple currency and real time bartering and clearance

Social Internal and external

business social media platform

Physical Delivery and security drones

Nano sensors

Self healing systems

Ubiquitous robotics

Remoteless manufacturing (3D printing)

Adaptive business coaching •  identification of relevant and

curated best practices and improvement levers

•  dynamic global advisory board

Internet of things •  real time performance

monitoring of physical infrastructure

•  real time geo-location inventory monitoring

Business ecosystem •  fail safe redundancy of

business suppliers •  electronic Integration into

customer business models

Applied business acumen (IA) •  self-correcting and optimising

operating processes •  physical and virtual resource

optimisation •  heuristic guided semi-automated

problem recovery

Business telematics •  real time big data monitoring of

actual business performance •  signalling and contingent

decision making to relevant business partners (Suppliers, Banks, Insurers)

•  syncs with all operating systems

Smart glasses •  capture image, video and audio •  scans coded markers •  enables multimedia chat •  updates social networks •  syncs with other mobile devices Wellness monitor

•  processes exercise data (steps, reps etc.)

•  analyses nutrition/ calories of grocery and restaurant foods

•  analyses perspiration for chemical markers

•  syncs with wearable exercise shoes/clothes

•  syncs with personal health portal

Mobile device •  primary mobile information hub •  wallet and credential hub •  application management hub • media and communications input hub •  interface between user and core

service portfolio

Networked wearable devices •  records physical activity for

upload to wellness monitor •  records physical activity

to a time log •  analyses physical performance

against goals •  displays progress/regress

against goals •  syncs with opt-in social networks

Health monitor •  captures resting/active

pulse, BP, temperature •  analyses cholesterol,

insulin and similar markers

•  syncs with wellness monitor for building health profile

•  communicates with healthcare provider

•  offers suggestions for health improvement

Daily IQ is part of a general migration of SME interfaces to a telematics based model The 2020 Digital SME and its CEO will demand a digitally transformed service offering from its bank

9



Global Market – peers and substitutes Daily IQ is a world first in SME However, a similar concept has been applied to retail banking: Moven - a financial control app linked to a debit card account for personal banking

10

Source: ICG

KEY INSIGHTS

•  No other SME based analytical tool has been launched , only those targeting personal customers

•  Moven is a NY based start-up that is providing a mobile app linked to a debit account

•  Offer connection to 40,000 ATMs, all managed by external partners

•  Branchless

•  Payment services outsourced to a third party

•  Minimized customer interaction thanks to a mobile app

How does it work •  Launched in February 2013, raised $2.4M in funding •  Founded by Brett King – financial educator and book writer

•  Tracks spending analysis across all your bank and credit accounts •  Records individual transactions, monthly totals by category and how that compares

with an individual’s typical spending •  Pay friends with Facebook, email and mobile •  Direct deposit and transfer money from external accounts

•  Provide Moven MasterCard debit card and mobile payment sticker •  Real time updates and Alerts

BUSINESS MODEL



Agenda

11











•  First of its kind

•  Provides smaller companies with information that was previously unavailable without time-consuming number-crunching

•  Business owners are able to see their cash-flow up-until the previous day, and analyse sales by criteria such as place, volume, time and transaction size, drawing on data from merchant terminals

•  Provides demographic information about customers, such as gender, age and postcode

•  Information about customers is aggregated in order not to infringe on privacy

•  Provides business owners new strategic insights, while saving them time

•  The large number of CBA processed consumer transaction ( approximately 40 per cent of the market) allows Daily IQ to provide meaningful and deep insights

12

Source: company website, secondary research

CBA DAILY IQ A MOBILE ONLY PLATFORM

Click video to view

Daily IQ is the first app of its kind and will provide SME business information in a very convenient way



There are three core areas where Daily IQ helps SMEs: Cash Flow, Merchant Insight, Customer Insight

13

Source: ICG; company website; secondary research

THREE CORE AREAS KEY INSIGHTS

•  The built-in Media Centre provides broader industry and market information to support business decision making and planning. This includes local and international share market updates, commentary on key economic data and analysis, plus a range of industry reports

•  Through Daily IQ business customers will not only gain a competitive advantage to enhance their performance but also the agility to act upon timely insights to help keep their business moving forward

•  The interactive nature and visual interpretation of the data enables customers to quickly and easily understand what it means for their business

•  All data used in Daily IQ is aggregated and de-identified to protect confidentiality by ensuring no individual information is made available

•  Advanced analytics can help businesses gain valuable insights to better manage sales and inventory and provide new intelligence on where savings and growth can be achieved

•  Enable businesses to more effectively manage operations and provide better support to make product, pricing and investment decisions

•  Customer Insights: to help businesses get closer to their customers by understanding their customer demographics better, including age, gender, location and average spend

•  Merchant Insights: to provide businesses with detailed analytics on spend across their terminals by sales turnover and volume, location, transaction size and time

•  Cash Flow: to help businesses manage working capital, through a better understanding of their cash flow position, balances and payment types

Daily IQ



Mystery Shopping: Branch Channel

•  Welcomed by branch concierge (was not aware of the Daily IQ product) •  Asked to wait in an informal area (free Wi-Fi, music, newspapers) for a business

specialist

•  Invited by the business banking specialist into their office •  Looked for an email to show the official Daily IQ video (available in this

document) •  After suggesting that company payments are processed only through PayPal

online (and not on POS as in the video) , the business specialist suggested to adopt B-point ( CBA’s online payment platform) with same day settlement

•  Mentioned that Daily IQ is free and part of Commbiz ( CBA business clients product, that clients are charged for)

•  Mentioned that Daily IQ has different level of information disclosure (different people in the company can see different levels of analysis)

•  In front of the potential customer the Business Specialist forwarded an email with a full explanation of Daily IQ

•  Provided a brochure about CommBiz (No Daily IQ brochures currently available) •  Offered a free industry report through the “Better business insight report”- part of

Commbiz (An impressive summary of relevant sub sector data)

•  After asking more info about CommBiz cost, offered to be contacted by a Commbiz specialist (not available at the branch)

BRANCH COLLATERAL

Source: ICG

PROGRESS

Branch Concierge

Branch Business Specialist

CommBiz Specialist

14



Mystery Shopping: Email Channel (1/2) Commonwealth Business specialist reaching out after the visit in the branch

EMAIL

Source: CBA business specialist

15



Mystery Shopping: Email Channel (2/2) Commonwealth Business specialist reaching out after the visit in the branch

EMAIL

Source: CBA business specialist

16



Mystery Shopping: Internet Channel

WEBSITE FLOW KEY INSIGHT

•  Browsed CommBiz dedicated website

•  Located Daily IQ as a tool provided to CommBiz clients

•  Directed to mini website dedicated to Daily IQ

•  Link to iTunes store to download the app

•  Available only on iPad

•  Highly rated on the app store – 4+

•  24/7 customer care number

•  Educational video

•  FAQ section

•  PDF user guide (available in this presentation

CBA CommBiz website

Daily IQ website


iTunes website

17



Mystery Shopping: Telephone Channel

•  Called number 13 23 39

•  Operator available 24/4

•  CommBiz number asked for at the start of the call for customer identification purposes

•  General information around Daily IQ and CommBiz offered by the operator

•  Offered to be called back by a business specialist during office hours

PHONE

Source: ICG; CBA CommBiz helpdesk number

PROGRESS PHONE INDICATION

18



Agenda

19











Relevant Media: extract from the Daily Press

•  Commonwealth Bank is seeking to win business customers with a new digital product that provides small and medium companies with

detailed and up-to-date information about their operations

•  Tablet application which offers daily insights into performance – part of a shift towards medium companies target

•  New way to sign up transaction banking customers to whom it can then sell other products

•  Moves the bank from being a funder and a transaction partner to being a business partner

•  The app is mainly pitched at medium businesses with turnover of $5 million to $100 million a year

•  The bank is hoping for lending growth in the business market, amid expectations borrowing in the sector will recover this year

•  The app is the latest sign of banks competing for customers through technology offerings, as lenders spend up big in anticipation of fierce competition in digital finance from sources including companies not operating in financial services today.

•  While consumers have been quick to embrace digital banking, banks see business customers as a source of transaction growth in light of the corporate sector's large payment needs

20

Source: Sydney Morning Herald, March 17th ; CBA Press release, March 17th ; Australian Financial Review, March 17th

PRESS DAILY IQ EXTRACT



Quotes from the Press

21

QUOTES

“Business analytics have often been the domain of larger companies, due to the investment involved in accessing multiple data sources. Now with Daily IQ, all businesses can have access to tailored insights in one convenient location”

Gary Roach, Acting Executive General Manager Corporate Banking Solutions, Commonwealth Bank

ComputerWorld, 17th March 2014

“'Advanced analytics can help businesses gain valuable insights to better manage sales and inventory and provide new intelligence on where savings and growth can be achieved”

Michael Harte, CIO, Commonwealth Bank Sydney Morning Herald, March 17th

“With approximately 40 per cent of Australia’s consumer transactions going through our systems every day, only CommBank has the volume of data required to provide the depth of insights contained in Daily IQ. However, what’s more important is helping customers understand the story the data is telling. As a result, the interactive nature and visual interpretation of the data enables customers to quickly and easily understand what it means for their business”

Gary Roach, Acting Executive General Manager Corporate Banking Solutions, Commonwealth Bank

Commonwealth Bank Press release, 17th march 2014

Source: Sydney Morning Herald, March 17th ; CBA Press release, March 17th ; Australian Financial Review, March 17th



Agenda

22











Website navigation: CommBiz web page (1/3)

COMMBIZ WEBSITE


23



Website navigation: Daily IQ web page (2/3)


DAILY IQ WEBSITE

24



Website navigation: iTunes web page (3/3)

25

Source: iTunes website

ITUNES WEBSITE



Daily IQ iPad application Screenshot – 1/3

26





27





28




FAQ Session -1/2

29




FAQ Session – 2/2

30




User Guides – Merchant Insight – 1/2

31




User Guides – Merchant Insight – 2/2

32




User Guides – Customer Insight

33




User Guides – Cash Flow Tracker

34




Agenda

35











36

ICG IP products cover a range of depth and frequency

DKS - Domain Knowledge Scan Cost: $5K (New) $900 Licence A unique highly distilled synthesis of the newest thinking in your industry, sub sector or function. Includes critical ideas, new frameworks, fascinating case studies, new insights – can be delivered via email and in person

KAR – Knowledge Area Review Cost: $20K From 2K Licence Information-rich slides, synthesised knowledge, categorised insights, data visualisations — a unique intellectual property on almost any topic, assembled to your personal specifications.

TIR – The Insight Review Cost: $100 / year The Insights Review presents timely editorial commentary and reviews of the most relevant “open published” perspectives and research reports from the world’s leading branded management consulting firms

CCS – Certified Case Study Cost: $1K (new) $450 Licence CCSs are up-to-the-minute slides describing an innovative or useful case study. They comprise between 15 and 25 power point slides containing: case study description, background information and key insights and mystery shopping of relevant channels

Deep

Deeper

Depth

Publication Frequency

Upon Request Annually / Semi-annually Monthly

ICG IP PRODUCT TAXONOMY

UNBUNDLED CONSULTING • PROJECT SUPPORT • CAPABILITY BUILDING • PROFESSIONAL ASSOCIATION

Internal Consulting Group

Email [email protected] or visit our website at www.internalconsulting.com

commonwealth bank of australia daily iq ccs 002 ...€“ccs...multi-bank rfp driven relationships,...

Documents