engagement banking: building relationships through online and mobile

Michael J. McEvoy Managing Director

+1.617.243.9500

[email protected]

www.athpower.com

Engagement Banking: Building Relationships Through Online and Mobile

© 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research.

If you plan to switch banks within the next 12 months, what are the main reasons?

11%

11%

12%

13%

16%

20%

21%

22%

24%

25%

28%

52%

58%

0% 20% 40% 60% 80%

Want a bank with better mobile banking

There was a security issue with one or more of my accounts

Other

Do not trust my current bank

Want a bank with better online banking

Current bank has made account errors

Want a bank that has more ATMs

Recommendation by friends/family/colleagues

Want a bank with more convenient banking hours

Want a bank that has more conveniently located branches

Not happy with the customer service at my current bank

Another bank has a good offer or promotion to join

Want better rates and fees on my accounts

Customer Expectations are Rising: Quality of Digital Channel Offerings Matters More Than Ever

2

Source: ath Power 2012 Ideal Banking Study™

© 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research. 3

Online Banking is Core to the Banking Relationship

16%

22%

33%

38%

41%

44%

45%

48%

51%

52%

53%

53%

56%

57%

61%

63%

Interest rate or yield on accounts

Level of communication to offer me accounts that fit my needs

Service fees

Quality of financial advising available to you

Number and convenience of the bank’s branch locations and ATMs

Wide variety of products and services

Convenient banking hours

Responsiveness to questions or problems

Availability of information about account options

Level of knowledge/expertise bank employees exhibit

General quality of customer service

Wait times at branches

Offers the ability to conduct most transactions via the Internet

Competence and professionalism of front-line staff

Friendliness of Employees

Serving as a safe and secure place for your money

Satisfaction With Performance Factors of Primary Bank


© 2012 ath Power Consulting Corporation. All Rights Reserved. a3 Intelligence® Customized Research.

49%

37%

30%

27%

30%

26%

10%

17%

24%

14%

16%

20%

0% 25% 50% 75% 100%

Mobile Banking2010

Mobile Banking2011

Mobile Banking2012

Do Not Need Would Like To Have Must Have Would Make Ideal

Soon, Majority of Customers Will Also See Mobile Banking As Core to Banking Relationship

4


5%

16%

32%

19%

20%

8%

Multiple times a day

Daily

2-3 times a week

Once a week

1 to 2 times a month

Less than once a month

How often do you use mobile banking with your bank?

72%

Mobile Customers Are More Engaged, Loyal

5 © ath Power Consulting Corporation. All Rights Reserved.

Source: ath Power 2012 Mobile Banking Study™

Why Mobile Banking Adoption and Usage Matter

© ath Power Consulting Corporation. All Rights Reserved. 6

More Interaction / More Engaged

Customer

Engaged Customers are

More Loyal

Improving Retention and

Share of Wallet

Retaining the Customer

• 3 in 4 mobile banking users surveyed indicate no quantifiable risk of switching their accounts to another bank within the next 2 years

Engaging the Customer

• 72% of mobile banking customers ‘check-in’ at least once a week

Acquiring the Customer

• 7 in 10 mobile banking customers place high importance on mobile offering in bank choice

Opportunity to Modernize Relationship with Customer

• Provide value-added services • Provide services outside of traditional banking • Revenue potential

Gap in Mobile User Support Needs Addressing…. Or Customer Experience, Retention Will Suffer


3% 0%

14%

6%

38%

7%

23%

14%

0%

25%

50%

Text interaction with abanking agent

Video interaction with abanking agent

A tutorial on mobilebanking features

Banking advice

Available Feature Would Like


12%

16%

17%

19%

56%

61%

62%

Apply for a mortgage

Purchase a CD

Apply for an auto or other loan

Invest money in stocks or bonds

Conduct debit transactions at a store orrestaurant

Receive special offers, promotions,coupons

Store and maintain rewards points

Percent Who Would Use Feature

Drive Online and Mobile Adoption, Improve Customer Experience By ‘Giving Them What They Want’




Best Practice in Mobile: Design ‘Customer Experience’ to Match the Device

Bigger Screen: • Detailed information (e.g. PFM) • Viewing statements / documents • Graphical representation

Less Mobile than Smartphone:

• Less useful for ‘on-the-go’ activities

Potential for Small Business Banking: • Less mobile device less likely to be lost • No alternate primary function (e.g. telephone)

Small Screen: • Quick transactions (e.g. checking balances) • Check what’s available for spending – like opening a wallet

Device Mobility:

• Location based services • P2P Payments • Point-of-sale transactions

‘Always on’:

• Alerts (fraud, stock trades, balance alerts, etc.)

Smartphone

Tablet


Optimizing ‘Customer Experience’ in Digital Channels

5 Key Drivers • Device Portability

• Screen Real-Estate

• Tap-and-Swipe vs. Point-and-Click

• Device Security

• Reliability of Service

Potential Pitfalls • Taking ‘online banking’ experience and shrinking it to mobile device

• Not taking into account how people use different devices and where they use them

• Not ensuring consistency / meeting expectations across channels


Text Banking

Account Monitoring

Aligning Digital Channel ‘Customer Experience’ with the Device: Example of North American Bank

Text Banking Mobile Browser

Account Monitoring Bill Payment Credit Card Payment Transfers - In-Bank ATM / Branch Locator Customer Service

Text Banking Mobile Browser Mobile App

Account Monitoring Bill Payment Credit Card Payment Transfers - In-Bank ATM / Branch Locator Customer Service RDC P2P Payments

Text Banking Mobile Browser Mobile App Tablet

Account Monitoring Bill Payment Credit Card Payment Transfers - In-Bank ATM / Branch Locator Customer Service RDC P2P Payments Visualization - Spending, Cash Flow PFM Tools, Advice

Text Banking Mobile Browser Mobile App Tablet Online

Account Monitoring Bill Payment Credit Card Payment Transfers - In-Bank ATM / Branch Locator Customer Service RDC P2P Payments Visualization - Spending, Cash Flow PFM Tools, Advice Bill Payment - Setup Transfers - Out-of-Bank International Transfers Currency Orders


Final Thoughts…. Looking Ahead

Laptop

Smartphone Tablet

Device Convergence

Touchscreen Laptops ‘Tabletization’ of websites? – Websites to be reengineered for Touchscreen devices:

‘Point-and-click’ to be replaced by ‘tap-and-swipe’

– Shift away from sequential navigation paradigms to Tablet-like experience

– Feedback from Tablet apps. to websites

– Touchscreen laptops

– Smaller tablets

– Smartphones with bigger screens

Meanwhile: How to serve up the ‘right’ customer experience???

Michael J. McEvoy Managing Director

+1.617.243.9500

[email protected]

www.athpower.com

Engagement Banking: Building Relationships Through Online and Mobile

engagement banking: building relationships through online and mobile

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