new paradigm for customers in 2019 · 2019-03-28 · mobile app 39% loans 18% ... leverage your...
TRANSCRIPT
NEW PARADIGM
HOW BANKERS WILL BATTLE
FOR CUSTOMERS IN 2019
LENDING ANALYTIC S AND PRODUC T MANAGER C SI
Brent McKown
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Western Bankers Association // March 2019
Survey Says? Your Peers Weigh in on 2019 Strategy
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Brent McKownProduct Manager – Lending Analytics
Computer Services, Inc. (CSI)
• More than 16 years of experience in financial services industry as product manager and banker
• Manages solutions used to monitor the health of customer bank lending portfolios
• Participates in R&D and the implementation of credit-based integration initiatives
• Previous experience as retail business banker and commercial lender
• Holds business administration degree and MBA
• Enjoys spending time with his wife and three children outdoors, playing sports and hiking
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TODAY’S AGENDA
DIGITALBANKING
CUSTOMER AQUISITION
CYBERSECURITY REGUALTORY COMPLIANCE
LENDING
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2019 BANKING PRIORITIES SURVEY
The survey was sent to banking executives across the United States.
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Where Do Banking Exes’Priorities Lie in 2019?
22220 BANKERS RESPONDED
Respondents were diverse, representing banks ranging from $100 million to greater
than $1 billion in assets.
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1 SOCIAL MEDIA ENGAGEMENT
2 CUSTOMER ONBOARDING
3 MOBILE BANKING APP
How would you rate the following at your bank? (1-5, with 5 being the highest)
BANKERS’ SELF-ASSESSMENT
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Dan LatimoreSVP/Head of Banking, Celent
“I would emphasize, in looking at this data, that you’re really looking for the overall customer experience, which is the sum total of all the different touchpoints that you have with the bank. If you want to improve the overall customer experience, each of these is important at different levels.”
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CUSTOMER ACQUISITION
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Of bankers stated that new customer acquisition will be a major tactic toward reaching revenue goals in 2019.71%
44%Adding self-service options like
online account opening
17%Adding ITMs/ILTs
23%Adding more branches
19%Pursuing M&A activity
CUSTOMER AQUISITION
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24%MOBILE APP
39%LOANS
18%SELF-SERVICE ACCOUNT
OPENING
What will be your single-most important channel for attracting new customers in 2019?
CUSTOMER AQUISITION
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CALLS TO ACTION:
• Consider adding an online account-opening solution to your product mix.
• Basic loans and deposits are a commodity, but it is very important to be present in the spaces that your customers dwell: digital.
• Be mindful of the many avenues available for expanding your customer base.
CUSTOMER AQUISITION
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DIGITAL BANKING
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Digital BankingDoes your institution plan to offer some form of
P2P service in 2019?
44%
YES
26%
NO
30%My institution
already offers P2P
$100B
P2Ps
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72%Expansion of digital channels
5%Stated they would not pursue omnichannel strategies
32%Automated customer onboarding
Digital BankingWhich omnichannel strategies will you implement in the
coming year to improve the customer experience?
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DIGITAL BANKINGDigital banking alone isn’t enough: here’s how bankers plan to go beyond
digital to fulfil an omnichannel vision in 2019.
18% plan to remodel
existing branches
20% will adopt a
universal banker model
23% will utilize analytics
technologies
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Incorporate P2P payments into your strategy. If you don’t provide this service to your customers, they will seek it out
elsewhere.
Don’t only focus on digital: ensure your customers get a consistent
experience in all channels with a solid omnichannel strategy.
Leverage your mobile banking app when reaching beyond their customer base.
CALLS TO ACTION:
DIGITAL BANKING
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CYBERSECURITY
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KEY POINT
44% of bankers believe cybersecurity will be the number one issue that affects the
financial industry in 2019.
72% of bankers said they will spend up to 20% of their budget on cybersecurity
this year.
CYBERSECURITY
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2 83% Network Security
479%Social Engineering/Pen Testing
6 77%Cybersecurity Assessment
872%Information Security Review
196%Employee Education
380%
Customer Education
576%
Anti-malware Software
775%
Vulnerability Assessment
Tactics
CYBERSECURITYWhich tactics will you implement in 2019 to protect against
cybercriminals or data breaches (check all that apply)?
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CALLS TO ACTION:
Prioritize employee and consumer education to ensure your institution
and customers remain safe from data breaches.
Perform regular testing, assessments and reviews.
CYBERSECURITY
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REGULATORY COMPLIANCE
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4%
16%
14%
GDPR/Consumer Data Protection
Laws
Regulatory Relief Act
CECL
REGULATORY COMPLIANCE
Which one issue will most affect the financial industry in 2019?
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42%
21%
33%
Spend Under 15%
Spend Under 30%
Spend Under 20%
What percentage of your annual budget will you spend on regulatory compliance in 2019?
REGULATORY COMPLIANCE
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CALLS TO ACTION:
Per regulators, perform adequate due diligence and on-going monitoring of
third-party relationships.
Consider deploying automated solutions to help reduce compliance spending.
REGULATORY COMPLIANCE
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LENDING
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40% of bankers identified loans as the single-most important channel for attracting new customers in 2019.
Digital lending has paved the way for high-margin, short-term loans delivered
through your bank’s digital channels.
In addition, 39% of respondents’ customers are small businesses.
LENDING
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CALLS TO ACTION:
Invest in digital lending: capitalize on small consumer loans that would be otherwise be unprofitable with traditional underwriting
Effectively manage your small-business portfolio
LENDING
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SURVEY RECAP
DIGITALBANKING
CUSTOMER AQUISITION
CYBERSECURITY REGUALTORY COMPLIANCE
LENDING
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Q&A
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GET THE FULL EXECUTIVE REPORT!
Want to read the full report, complete with additional insight on the survey data?
VISIT CSIWEB.COM/PRIORITIES2019
You will receive a full copy of the report, complete with bankers’ comments and
industry experts’ analysis.
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THANK YOUPlease Contact Me with Questions:
Brent McKown
(270) 442-7361, ext. 10296