Post on 12-Oct-2020
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The Future Home Buying Experience:Designing Relevant Digital Services for Customers that Support their Financial Lives
Peter Neufeld, Partner, Customer Experience and Digital
EY-Seren
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The digital opportunityWhat’s driving change in the market?
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“Silicon valley is coming. There are hundreds of start-ups with a lot of brains and money working on various alternatives to traditional banking.”
- Jamie Dimon, CEO, J.P. Morgan Chase
http://uk.businessinsider.com/jamie-dimon-shareholder-letter-and-silicon-valley-2015-4
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Sustained Low Interest Rates
MMR and Other Regulation
Escalating Housing Prices
Uneven Wealth Distribution
Fewer people will find it more difficult to save for a deposit and finance home ownership
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‘Digital’ is standing in for a dramatic global shift across industries driving radical disruption
Uber, the world’s largest taxi company, owns no vehicles.
Facebook, the world’s most popular media companies, creates no content.
Alibaba, the most valuable retailer, has no inventory.
Airbnb, the world’s largest accommodation provider, owns no real estate.
Something interesting is happening . . .
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Challenger banks are bringing new, innovative to market but may struggle with growth
200,000new customers in 18
months
£100Mcapital raise to invest in mortgages for mobile
first digital bank
100,000new users in under a year
New entrants are challenging the underlying business model, moving
beyond omnichannel to a digital and mobile only world
Simple Branchless Connected
Mobile First (Only) Intuitive Collaborative
£100Mcapital raised ahead of
launch
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FinTechs are challenging and evolving traditional business models
By creating secondary markets for data (1) , developing new marketplaces (2),
focusing on customer segments (3) or automating advice (4)
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2012
17,000 employees 13 employees
-$1.65BN $1BN
Filed bankruptcy Acquired by Facebook
AS NEW PLATFORMS FOR CONSUMER ENGAGEMENT COME TO MARKET, TRADITIONAL BRANDS ARE DISRUPTED BY NEW DIGITAL NATIVES
DIGITAL DISRUPTION IS SIGNIFICANT
17,000 employees 13 employees
-$1.65BN $1BN
Filed bankruptcy Acquired by Facebook
AS NEW PLATFORMS FOR CONSUMER ENGAGEMENT COME TO MARKET, TRADITIONAL BRANDS ARE DISRUPTED BY NEW DIGITAL
NATIVES
DIGITAL DISRUPTION IS SIGNIFICANT
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Traditional industry boundaries?
Competition is increasing from digital natives with considerable global access to customers (digital platforms at scale) and innovation capital
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The new first Platform?
It took 13 years to get 2 million customers
using Internet banking; it took just 2 months
to reach that number for mobile banking.
Customers are going for 1 online
engagement per month to averaging 3
check-ins a day on mobile banking Apps
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Digital delivers greater scale
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But are we leaving customers behind?
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Many people struggle when confronted by complex financial choices
•
•
•
•
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Sources: EY-Seren Research, Gov.UK
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Confidence and trust in their
own digital abilities leads to
preference for digital, until
their needs get complex and
strategic, when they switch to
a branch.
Prefers the speed and
convenience of digital, but
still has favorable memory of
high-touch service, and will
use the branch experience
when it can enable superior
decisions.
Will leverage digital
increasingly as they are
confident in their own
capabilities, but still more
comfortable with expertise
provided in branch
experience.
For complex financial decisions people still prefer talking to other people
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Design in absence of research and testing can lead to poor outcomes from customers
‘Only 10% of people shown four lines selected more than four funds, that number quadrupled among subjects given eight lines. This means that the level of diversification was driven, in large part, by a seemingly minor website specification’
Retirement Planning Needs a Better UXShlomo Benartzi, May 01, 2015, Harvard Business Review
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Customers’ express a growing willingness to use non-banking providers for banking needs
What kind of providers would
you consider in the future?*
What kind of providers do you
use now?*
Current Account
Deposit/Savings
Credit Card
Mortgages
*% UK respondents n=5662Bank only Bank and non-bank Non-bank only
68
59
43
58
28
34
43
32
4
7
14
10
90
88
58
87
4
5
17
1
6
7
25
12
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Our research suggest customers want more from their financial lives that just transactions
13%
17%
18%
11%
13%
16%
14%
14%
15%
9%
30%
31%
29%
28%
27%
28%
28%
31%
25%
22%
25%
23%
20%
20%
19%
18%27%
31%
20%
29%
Respects your cultural or religious requirements 60%
Takes overall relationship into account when quoting fees 61%
Customizes products and servics to fit your needs 62%
Provides access to financial experts 63%
60%Recommends accounts, products and serices that you need
71%
Provides a plan to meet my financial goals
64%
Finds new ways to improve how you conduct your business
65%
Finds ways to save you money
72%
Rewards you for being a loyal customer
Invests in my financial wellbeing 73%
Add more accounts / servicesPay a little more Increase my deposits / investments
Customer Engagement Drivers In Financial Services
#1
#2
#3
#4
#5
#6
#7
#8
#9
10#
Importance Ranking
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People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions
First bank
account /
school
University/
first job
First homeStarting a family
Career
maturity
Planning for
the futureKids leaving
home
Downsizing
home
Retirement
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People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions
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People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions
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1. Embracing customer centricity
2. Digitising products & services
3. Creating new digital propositions
4. Building the future digital organisation
5. Building the future digital platform
6. Regulatory innovation
People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions
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People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions
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Thank you
Peter NeufeldHead of Digital and Customer ExperienceFinancial ServicesEY-Seren@peterneufeld