BBVA Innovation Edge. Customer Experience (English)
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Transcript of BBVA Innovation Edge. Customer Experience (English)
NOVEMBER 2013 7
Designing customer experiences for value
Customer Experience
Customers at the Front & Center of BusinessCustomer Experience & BankingHello Omnichannel!Omnichannels for FSs
Trending issues
Technology trends
also in this issue
Corporate social responsibility at
the sales coalface – no more only
'what's in it for me'
Customer experience management (CX) will replace CRMs
Customers control the
buying process
Salespeople become financial
managers
The rise of smartphones
in sales
Marketing (as we know it)
is dead
Breaking the chain of ignorance,
upping the pace of transformation
Empathy, the new
sales edge
The university of selling
Instant access to solutions
Sales leadership in uncertain times;
stop managing and start leading
Delivering real value beyond
product and price
Customers at the Front & Center of BusinessChanges in technology are forcing change onto business models. We are moving away from product-centric models and moving towards customer-centric models. Leading companies are discovering ways to harness this shift by placing customers at the front and center of business.
Ready for customer-centricityCustomers are living increasingly digital lives, with access to tech-
nology and information that enable them to make better and
more-efficient decisions across their day-to-day interactions with
companies and other individuals. Understanding the underpin-
nings of this digital life, the ecosystem that is driving customer
adoption and how this integrates into existing face-to-face inter-
actions will be key to banks and financial services companies
flourishing through the next five years.
Source: Gartner | The Nexus of Forces: Social, Mobile, Cloud, and Information, June 2012 Gartner | Agenda Overview for Banking and Investment Services, January 2013 image: i95dev | Applying Gartner’s Nexus of Forces to Retail, March 2013
Nexus of Forces: the convergence of major technology trends; setting the table for the post-product era: Welcome to customer-centricity.
Information
Delivery
Behaviour
Social
Access
MobileContext
Cloud
Customers are now in controlCustomers now hold the power in their re-
lationships with banks. They are more con-
nected, vocal, and on the lookout for strong-
er relationships than ever before.
Source: EFMA/Peppers&Rogers Group
Customer Experience in Retail Banking, 2010
not just a product or service They want a partner in their daily lives,
People are the new channelIn a digital and social age, pipes are less important. People are the chan-
nel. You don’t own or rent them. You can’t control them. You can only
serve and support them. This new world is disorienting because pipes
and people work very differently as channels. Pipes flow out; people
flow in. Content is pushed out through pipes, but pulled in through peo-
ple. This reversal is shifting the balance of power.
Source: Harvard Business Review | People Are the New Channel, April 2013
You can’t control them!
Content is pushed out through!
Content is pulled in through
Flow out!
Flow in!
You can only serve and support them!
CX (Customer Experience) is increasingly a top of mind issueCompetitive differentiators of the past—man-
ufacturing strength, distribution power, and
information mastery—have each been com-
moditized and are now easily accessible to
every company (and, let’s face it, any enter-
prising individual with a smartphone). This has
led to mass digital disruption and dissolution
of traditional industry boundaries.
The field of customer experience has risen to
prominence over the past several years be-
cause we’ve entered a new era: the age of the
customer. As we approach the end of 2012, the
business discipline of customer experience, or
CX, has gone mainstream. It’s acknowledged
as a key competitive differentiator, even by
those who prefer spreadsheets to sticky notes.
Source: Forrester | Outside In: The Power of Putting Customers at the Center of Your Business, 2013
Other industries are focusing on customer experienceOver the past seven years, Forrester has observed an increase in
the number of companies that have a single executive leading cus-
tomer experiences efforts for a business unit or entire company.
Whether firms call them a chief customer officer (CCO) or give them
some other label, Forrester sees an increasing number of executives
accountable for customer experience efforts across a business unit
or an enterprise.
2012
16 %
24 %
9 %
5 %
6 %
4 %
8 %
5 %
1 %
5 %
1 %
2 %
1 %
2 %
2 %
1 %
1 %
2 %
2013
17 %
15 %
15 %
10 %
8 %
7 %
5 %
4 %
3 %
3 %
3 %
3 %
2 %
2 %
2 %
1 %
1 %
1 %
1 %
1 %
Software
Professional services
Financial services
Utilities
Healthcare
Telecommunications services
Business services
Retail
Automotive
Consumer products manufacturing
Food manufacturer
Transportation services
Art. entertainment and recreation
Beverage manufacturer
Industrial manufacturing
Commercial printing
Education
Media
Restaurant, bars, and food services
Wholesale
The rise of the Chief Customer OfficerCCOs will play an increasingly critical role
for firms—not just in helping them differenti-
ate based on great experiences, but also in
adopting new business architectures and op-
erating models made possible by new capa-
bilities like digitally connected products and
services, mobile computing,social networks,
and dynamic partner networks.
Source: Forrester Research | The Rise of the Chief Customer Officer, January 2011
Successful CCOs will move their company…
from a reactive find-and-fix
mentality to one that aligns…
…employees, partners, processes, and technologies…
…around customer goals and uses emerging capabilities to deliver new value.
Customer Experience &
BankingIn a crowded banking market, just having good
branch locations with high-level service and competitive rates are not going to cut it. Banks must
find ways to remain relevant in the future Financial Services industry by embracing CX as a key element
of a sustainable, competitive business model.
Just 5% depositsare held by banks
competing in regions with less than 15 Fls.
38
89
28 Banks competing in a typical
MSA
82 82
40
24
66% of all deposits
are held by banks competing in
regions with more than 15 Fls.
613
< 10 11-15 Financial
Institutions 16-20 21-30 31-50 51-75 76-100 > 101
If I need banking services nearby, how many providers are there?
Competition is intense, with 28 Banks competing in a typical geo-graphic area
Source: Optirate | Retail
Banking is more competi-
tive than most believe, 2011
There’s a lot!!! For example, in the US, there are more
than 15,000 Financial Institutions; about 7,800 banks
and 7600 credit unions. In a typical metropolitan set-
ting, a depositor will have more than 50 banking pro-
viders competing to capture the deposit. Needless
to say, just keeping the money safe isn’t going to be
enough to win the business. At the end of the day,
whoever consistently offers the best experience for
the customer will win.
% Deposits
Nº MSA ( Metropolitan Statistical Area )
18%
4%
6%9%
13%
1%
7%
41%
And if we add direct banks into the mix ...
Source: TNS | Direct Banks and the Future of Retail Banking, 2012
Not only do consumers have lots of nearby banks offering financial services, they also have ac-
cess to “direct banks” (aka “branchless”) ... and they are capturing the customers’ attention and
their business.
Share of New and Lost Primary Bank Relationships
2000 2006 2008 2010 2011 2012
2005 2007 2009 Proj
Share of New Relationships
24 REGIONAL BANKS
Share of Lost Relationships
29% 30%
28%28%
Share of New Relationships
BOFA, CHASE, WELLS
Share of Lost Relationships
37% 35%
34%
30%
Share of New Relationships
4 DIRECT BANKS
Share of Lost Relationships
3.5%
8.0%
1.0%07%
Net share gain
Share of Lost Relationships
COMM. BKS & CUS
Share of New Relationships
41%
31%
28%
32%Net share loss
2000 2006 2008 2010 2011 2012
2005 2007 2009 Proj
Customer Experience & ROI Despite an increased focus on customer ex-
perience initiatives by banks of all sizes, new
research has found that not all of these efforts
may be resulting in revenue growth ... Part of
the problem is a lack of association by banks
between customer experience initiatives and a
tangible ROI.
The important question is which activities lead
to revenue growth.
By evaluating activities being implemented at
growth and non-growth banks, the research
found that there were four fundamental cus-
tomer experience practices that could be di-
rectly tied to revenue growth at financial insti-
tutions.
The practices that were found to be most cor-
related with financial performance:
Utilizing a decision-making process that emphasizes the customer
Establishing a goal for customer experience improvement
Sharing a common definition of what a positive customer experience is
Taking action on individual customer feedback
Source: Bank Marketing Strategy | All Bank Customer Ex-
perience Initiatives are Not Created Equal, June 2013
The two most important differentiators are
that growth banks have invested in technol-
ogy that helps to close the loop between cus-
tomers who report a problem, indicate a need
or recognize an employee who performs well.
Growth banks and credit unions also have a set
of criteria they follow when prioritizing, funding
and resourcing customer-aligned initiatives.
Non-Growth Banks Growth Banks
CX PRACTICES OF GROWTH VS. NON-GROWTH BANKSThere are four foundational customer experi-
ence practices that differentiate Growth Banks
from their Non-Growth competitors.
ESTABLISHED GOALS FOR IMPROVEMENT
42%
69%
COMMON UNDERSTANDING OF CX
29%
63%
29%
71%
TAKE INDIVIDUAL ACTION CUSTOMER FEEDBACK
points
27points
34
points
42
DISCIPLINED DECISION MAKING AROUND THE CUSTOMER
21%
60%
points
39
Competition in the financial services is heating up
The fastest growing financial services institutions are retailers, grocery store chains and automotive companies. They have adopted the omnichannel (approach) more aggressively than the banking industry
Source: The Banker | Social Banking in the Omnichannel Era
Ralph Silva
It’s getting rather crowded in the FS space. “Banks are no longer just com-
peting with each other, they are also at war with a growing number of retail-
ers and innovative start-ups that employ social media tactics to offer sought-
after services.
In the retail world, a customer can order an item online and pick it up in the
store. They can go into a store and ask for a particular item to be delivered to
their home (or in the store). This type of service is no longer just multichan-
nel or cross-channel; it is omnichannel – a seamless and integrated experi-
ence for consumers without restrictions. It is exactly this type of offering that
is lacking among banks. Indeed, there is little choice for banks but to change
their strategy.
The threat of disintermediation is realFrom a financial services institu-
tion’s perspective, disintermediation
is a major risk in the current wave
of transformation. Disintermedia-
tion happens when the current in-
dustry offering (and revenue mod-
el) becomes obsolete by failing to
adapt to new technology enabled
value propositions.
For banks, CX is a top priority
Improving the customer experi-
ence was the foundation of almost all
of the responses I received around
2014 strategic priorities. Whether
we are talking about branch recon-
figuration, mobile banking applica-
tions, back office operations, etc.
banking industry leaders believe an
improved customer experience is
the key to growth.
Jim Marous
Source: Cisco | Winning Strategies for Fi-
nancial Services Players in the Age of Mo-
bile and Social Payments, February 2013
Source: Bank Marketing Strategy
| Banking Leaders Discuss 2013 Stra-
tegic Planning Activities, July 2013
See also: Gartner | Gartner Says Cus-
tomer Experience Enters Top 10 CIO
Priorities for 2012, April 2012
This threat is coming from four major
players
FinTech start-ups
Telcos
Tech Companies
Retails
Hello Omnichannel !Which way should I go? In an omnichannel world, it doesn’t really matter; the customer will have a consistent, frictionless journey regardless of the road she chooses to take, accompanied by his preferred device and, increasingly, devices.
A little about today’s consumersToday, consumers take a multi-device/multi-
channel path “journey” to purchase and navi-
gate seamlessly between various touchpoints,
driven by the given context.
CONTEXT DRIVES DEVICE CHOICE Today
consumers own multiple devices and move
seamlessly between them throughout the day.
The device we choose to use at a particular time is often driven by our CONTEXT
Our ATTITUDE and state of
mind
The GOAL we want to accomolishThe amount of
TIME we have or need
Our LOCATION
Watching an Online
Video
Social Networking
Shopping Online
Searching for Info
Managing Finances
Planning a Trip
Browsing the
internet
TOP ACTIVITIES PERFORMED WHEN SEQUENTIALLY SCREENING BETWEEN DEVICES
SEQUENTIAL USAGEMoving from one device to another at different times to accomplish a task
81%
72%
67%
63%
43% 43%46%
Ver un vídeo online
Interacción en redes sociales
Compras online
Buscar información
Gestionar las finanzas
Planificar un viaje
Navegar por internet
30% 30% 25% 29% 34% 34%
24% 27% 19% 23% 29% 24%
6% 4% 5% 6% 6% 10%
38%
31%
7%
Continúa en un
smartphone
Inicio en unPC
Continúa en una tableta
Smartphones are the most common starting place for online activities
Watching an
Online Video
Social
Networking
Shopping
OnlineSearching
for Info
Managing
Finances
Planning
a Trip
Browsing
the internet
63% 66% 65% 59% 47% 56%
58% 58% 61% 56% 45% 48%
5% 8% 4% 3% 3% 8%
65%
60%
4%
Started on a smartphone
Continued on a PC
Continued on a tablet
SMARTPHONES TABLETS PC / LAPTOP
Source: Google | The New Multi-screen World, August 2012
Tablets are most often a starting point for shopping and trip planning
7% 4% 11% 7% 7% 11%
1% 2% 0% 1% 1% 2%
6% 3% 10% 6% 6% 9%
15%
1%
14%Continued
on a PC
Startedon a tablet
Continued on a smartphone
SMARTPHONES TABLETS PC / LAPTOP
Watching an
Online Video
Social
Networking
Shopping
OnlineSearching
for Info
Managing
Finances
Planning
a Trip
Browsing
the internet
Source: Google | The New Multi-screen World, August 2012
PCs are most often a starting point for more complex activities
30% 30% 25% 29% 34% 34%
24% 27% 19% 23% 29% 24%
6% 4% 5% 6% 6% 10%
38%
31%
7%
Continued on a smartphone
Startedon a PC
Continued on a tablet
SMARTPHONES TABLETS PC / LAPTOP
Watching an
Online Video
Social
Networking
Shopping
OnlineSearching
for Info
Managing
Finances
Planning
a Trip
Browsing
the internet
Source: Google | The New Multi-screen World, August 2012
A new path to purchaseThe new path to purchase is called customer
decision journey.
Marketing has always sought those moments,
or touch points, when consumers are open to
influence. For years, touch points have been
understood through the metaphor of a ‘funnel.’
But today, the funnel concept fails to capture all
the touch points and key buying factors result-
ing from the explosion of product choices and
digital channels, coupled with the emergence
of an increasingly discerning, well-informed
consumer.
A more sophisticated approach is required
to help marketers navigate this environment,
which is less linear and more complicated than
the funnel suggests. We call this approach the
consumer decision journey.
When marketers understand this journey and
direct their spending and messaging to the
moments of maximum influence, they stand
a much greater chance of reaching consum-
ers in the right place at the right time with the
right message.
Source: McKinsey & Co | Winning the cus-
tomer decision journey, December 2011
THEN
NOW
THEN: The purchase funnel
Awareness
Familiarity
Consideration
Purchase
Loyalty
THENNOW: The consumer decision journey
Evaluate
Commit
Consider Buy
Experience
Decision trigger
AdvocateInterest trigger
Customer journey as a differentiatorConsumers connect with brands throughout the cus-
tomer life cycle: they discover, explore, buy, and engage
using a multitude of touchpoints. But some sources
are more effective than others at driving consumers
to the buy phase and have a stronger influence on the
price they ultimately pay for their purchase.”
“Marketers need to understand the iterative and circu-
lar consumer decision journey so they reach consum-
ers in the place at the right time with the right mes-
sage. Getting the basics right starts with the customer
decision journey and it can mean millions of euros in
growth or savings. Marketers can find millions of euros
by being much more systematic and disciplined about
extracting value from every stage of the customer de-
cision journey.
Sources: Forrester Research | Assess the
Impact of Touchpoints Along the Con-
sumer Path-to-Purchase, April 2013
McKinsey & Company | Major Bank, Ma-
jor Digital Transformation, December 2012
Moving from point of sale to point of decision: the omnichannelA differentiating strategy in the omnichannel era is moving from the “point of sale” to “point of decision”
Omnichannel, an attempt at a definitionIn its most simple sense, omni-channel can be
defined as ‘doing multi-channel properly.’
Omni-channel starts with understanding the
needs and behaviors of your customers, then
designing experiences that fit your brand into
their natural habits and day to day lives. Final-
ly, the right technologies are chosen and opti-
mized to deliver the experiences in an efficient,
enjoyable and consistent manner to the con-
sumer.
Source: webcredible | Omni-channel Cus-
tomer Experience, November 2012
Omnichannels for FSsFor established financial services companies, the challenge of omnichannel lies in finding the “right” mix of branch banking, mobile, social, and video technologies to offer seamless banking experiences to customers in contextually meaningful way.
The era of omnichannel banking is here
Omnichannel banking is different from the cur-
rent “multichannel” approach in which banks
encourage customers to use the least expen-
sive channel, while delivering minimal cross-
channel consistency and an inconsistent user
experience. Omnichannel banking provides a
consistent experience across channels to pro-
vide customers with seamless access to finan-
cial products and services—where and when
they are needed. In the world of omnichannel
banking, customers are in control of the chan-
nels they wish to use.
Omnichannel banking is not a hypothetical
concept; instead, it is essential to address-
ing customers’ desire to control the time,
place, channel, and information required to
perform their banking activities. In devel-
oped countries, a rich mix of physical
(branch) and virtual (web, mo-
bile, and social) banking chan-
nels has prepared customers
for the advent of a seamless
omnichannel experience.
Source: Cisco IBSG | Winning Strategies for
Omnichannel Banking, June 2012
Social
Branch
Mastering digital channelsDigital tools are a wonderful opportunity for banks to address
customers’ needs throughout the lifecycle.
source: Bain & Company | Customer Loyalty in Retail Banking, 2012
Mastering digital channels: from a single moment of truth approach to a global client lifecycle approachOptimised channels all over the customer lifecycle Increasing client knowledge
High Low
Cross-sellingIncrease stickiness
LoyaltyDevelop client intimacy
RetentionBe the main bank
Branch
Social media
Mobile
Website(internet banking)
ATM
Tablet
Source: Kurt Salmon study
Elements of the omnichannel for banks
Hub and spokeLarge branch in high-traffic
crossroad surrounded by small, largely
automated branches
KioskIn grocery store or metro station, with staff member
for quick service
Video teller machineVideo connection to extended-hours
tellers for transactions or problem solving
Mobile applications For remote deposit capture, alerts related to accounts,
alerts on homes for sale, etc
Smart ATMPay bills; buy airline tickets,
stamps, transit system passes; or other third-party
transactions
Video conferencingWith expert specialist
for advice and consultation
Touch-screen wallTo browse and get turorials
on products
Credit centerUnstaffed center connected
via video to remote office for credit applications
Source: Bain & Company
4 Pillars for transforming to Omnichannel banking
Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, June 2012
The new branch Mobile Social Video
The Branch Remains a Preferred Channel for Complex Products and Advisory
Digital technologies will accelerate branch transformation
The Old Branch Is Dead; Long Live the Omnichannel Branch
The death of the branch has been greatly exaggerated. The most avid adopters of virtual chan-
nels—tech-savvy consumers—are also among the most frequent branch visitor. The branch con-
tinues to be the preferred channel for personal attention and advice, including new services.
Customers are also open to having advice delivered to them virtually in the branch as long as
quality and personalization do not suffer. Video will be at the center of branch transformation.
4 pillars for transforming to omnichannel banking: the new branch
Source: Cisco study, “Winning Strategies for Omni Channel Banking”, 2012
Branch
Telephone
Bank´s Website
ATM/Kiosk
Bank´s mobile app/site
Social media (e.g. Facebook)
13% 4% 70% 5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
28%
14%
48%
10%
10%
10%
53%
9%
6%
5%
20%
9%
4%
5%
5%
7%
59%
70%
28%
69%
76%
75%
39%
70%
2%
3%
1%
1%
3%
3%
4%
8%
5%
8%
3%
11%
7%
7%
3%
10%
18% 2% 73% 1% 5% 1%
Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, June 2012
Research/compare available products/services
Pay for something
Trade a security (e.g., buy/sell a stock)
Transfer funds between accounts
Obtain support from banking representative
Receive/review account alert
Manage my account
Pay a bill
Apply for a loan
Check account balance
The percentage of US customers who prefer to bank online jumped to 62% in 2011, up from 36% in 2010
Studies indicate that 47% of US banking customers believe that a bank is not even legitimate unless it has branches, up from 41% only a year ago
Mobile Capabilities Con-sidered Most Valuable (North America)
Source: Monitise/Future Foundation/nVision ı Base: 500 online respondents per country who are aged 16+ and own a smartphone, 2013
The Promise of Embedded Banking in Consumers’ LivesAs Internet access continues
to improve over mobile de-
vices, mobile is rapidly emerg-
ing as a banking channel.
Preferred features for mobile
banking include real-time ex-
pense tracking, mobile pay-
ments, and location-based
commerce.
What Consumers want from financial institutionsI would feel more confident in buying goods and services
through a mobile phone if i coul do so through an app offered
by my bank. Among smartphones owners
Respondents clearly have a
preference for mobile bank-
ing, (however) it’s important
to note that they do not want
it to replace other channels.
... and are very supportive of
using multiple services in an
omnichannel environment.
4 pillars for transforming to omnichannel banking: mobile
Real-time expense tracking and money management
Remote check deposit by talking a picture
Mobile phone acts as a payment mechanism, replacing cards / cash
Shopping offers based on location
Peer-to-peer payments
Being recognized upon entry into a bank branch or retail store for more personalized services
Customer support from my bank using “natural language query”
None of the above
Do not know N= 1,671
0% 10% 20% 30% 40%
22%
21%
18%
14%
14%
10%
7%
38%
10%
100%
80%
60%
40%
20%
0%
Agree Agree strongly
Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, June 2012
Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, June 2012
Spain UK Germany
Social is not another channel, it’s a whole new
way of doing business and it’s key to customer
experience.
Customer experiences are about touchpoints
and touchpoints are by definition social. Guess
what is a key focus in 2013? Indeed, social. Not
as ‘just another channel’ but as a whole new
way of doing business.
Gartner predicts that by 2014, refusing to com-
municate with customers via social channels
will be as harmful to the relationship as ignor-
ing their emails or phone calls is today.
Our discussions with service providers and
end users indicate that CRM services are shift-
ing from a focus on point solution deployment
centered on application suites, to a ‘customer
experience’ that brings together customer in-
formation, analytics, workflows, mobility and so-
cial CRM disciplines into a richer, multichannel
access to capture the entire customer journey.
Source: Gartner | Analyst, Ed Thompson
The Potential Is Here — When Will Banks Be Ready? Social banking is still lagging, as an overwhelm-
ing number of customers are reluctant to mix
banking with social activities. A key reason
for their reluctance is concern about privacy
and lack of control over personal information.
When it comes to going social, one segment
stands out—younger, tech-savvy customers,
especially those in emerging countries who
tend to be dissatisfied with their bank.
Source: Cisco IBSG | Winning Strategies for Omnichannel Banking,
June 2012
4 pillars for transforming to omnichannel banking: social
26 percent said that video conferencing with
a remote expert would enhance their expe-
rience when the expertise was not available
in the branch. This makes video a key feature
and experience enhancer for unmanned bank-
ing kiosks, after-hours multipurpose ATMs, and
next-generation virtual banking delivered to
homes and Offices. Interestingly, those most
interested in video as a banking channel tend
to be GenX customers who are also in the ear-
ly-majority group when it comes to technol-
ogy adoption. This shows that video is ready
for mass adoption above and beyond younger,
tech-savvy consumers.
Seeing is Believing In banking, video is a key enabler of building
trust in situations where humans are not physi-
cally available.
Video is a key feature and experience enhanc-
er for unmanned banking kiosks, afterhours
multipurpose ATMs, and next-generation vir-
tual banking delivered to homes and offices.
4 pillars for transforming to omnichannel banking: video
Video adoption in consumers’ personal lives
or at work isn’t limited to younger, tech-savvy
consumers. Cisco IBSG’s study indicates that
Gen X and early-majority technology adopters
are now solid believers in the role of video.
Source: Cisco IBSG | Winning Strategies for Omnichannel Banking,
June 2012
Global SnapshotsA quick look at some examples of omnichannels in the financial services industry and other leading retail businesses and some notable providers of omnichannel technology solutions.
Experience Design
BANKS / FS l RETAILERS l PROVIDERS
COMMONWEALTH BANKPi is an open platform developed by Common-
wealth Bank designed to optimise business pay-
ment processes and enrich customer experience.
Sources: www.commbank.com.au/business/pi.html
www.banktech.com/payments-cards/commonwealth-bank-aims-to-revo-
lutionize/240003842
See the video: http://www.youtube.com/watch?v=oaWHgl4984E
BANKS / FS l RETAILERS l PROVIDERS
FIDOR BANK Is built around web 2.0 and social media, allowing
customers to experience their finances as a retail
social experience.
See the video: http://www.youtube.com/watch?v=Br39kKaCKxA#at=42
BANKS / FS l RETAILERS l PROVIDERS
ALIOR BANK Unveiled Alior Sync, Poland´s first digital bank, pit-
ching it as a new type of financial services firm,
available anytime, anywhere, for a young, digitally
savvy customer base.
Source: Finextra I Virtual branches and Facebook pay-
ments: Poland gets new digital bank, June 2012
BANKS / FS l RETAILERS l PROVIDERS
MBANK Is a banking spin-off of BRE Bank, redesigned from
scratch based upon four key tenets: real-time mar-
keting, personal Financial management, Mobile
banking and Social media. Winner of Finovate Eu-
rope Best in Show 2013 award with Efigence for
their facebook and social platform.
Source: Techcrunch I mbank and the futu-
re of responsive banking, July 2013
BANKS / FS l RETAILERS l PROVIDERS
MASTERCARD AND VISAJust like AmEx members, Mastercard and Visa car-
dholders can sync their accounts with Foursquare
to earn discounts at nearby restaurants and retail
stores.
Source: Fastcompany I Foursquare syncs master-
card visa merchant specials, February 2013
BANKS / FS l RETAILERS l PROVIDERS
CREDAt the heart of Moven is CRED, a credibility sco-
re that incorporates the social sphere to financial
scoring: it´s not about your credit, it´s about your
credibility.
Vimeo I Cred Score from Movenbank, 2012
BANKS / FS l RETAILERS l PROVIDERS
KIWIBANKKiwibank’s Adaptive Experience Prioritizes Device-
Specific Tasks.
On a PC, the site focuses on products and Internet
banking. On a mobile handset, it prioritizes mobile-
relevant tasks and content.
Source: Forrester I Digital Customer Experien-
ce Trends To Watch, January 2013
BANKS / FS l RETAILERS l PROVIDERS
CITIBANKImplemented PolyVista’s Cloud Solution to discover
what drives and what impacts negatively customer
experience during a loan application process.
Source: Businesswire I Citibank Harnesses PolyVista Discovery Ca-
pabilities to Improve the Customer Experience, February 2013.
BANKS / FS l RETAILERS l PROVIDERS
BNP PARIBAS Bnp Paribas mimicks the retail experience one
might see in an online supermarket adding icons
that denote various financial product categories,
providing familiarity to the sales process.
Source: Mapa Research
www.maparesearch.com/brochures/MapaResearch-
DigitalSalesReport-Brochure-Apr13.pdf
BANKS / FS l RETAILERS l PROVIDERS
NATWESTNatwest approaches the ideal proposition in pro-
viding direct access to customer support as users
look to be leaving the sales journey. As a potential
customer attempts to click out of an application,
possibly in frustration, the web site provides a clic-
kable link for direct contact with an advisor to help
complete the journey.
Source: Mapa Research www.maparesearch.com/brochu-
res/MapaResearch-DigitalSalesReport-Brochure-Apr13.pdf
BANKS / FS l RETAILERS l PROVIDERS
TESCOTesco leads the way in addressing mobile grocery
buyers with a range of apps and services that allow
customers to shop on the go and have the items
delivered at the door later or a GPS-enabled app
that tells customers where in a store a certain pro-
duct is.
See the video: http://www.youtube.com/watch?v=JcgfgO3Vzmw
BANKS / FS l RETAILERS l PROVIDERS
AMAZON AND WALMART Companies such as Amazon and Walmart provide
users with temporary lockers to receive delivery of
packages. Basically, you can go online, order all of
the things that you want, and your items will show
up in this locker rather than your doorstep. It’s a
convenience thing for sure, and the reason why
Google bought Y Combinator company Bufferbox
and the reason why a company like Swapbox can
emerge.
Source: Techcrunch I Walmart follows amazons lead starts
testing locker delivery in retail stores, March 2013
BANKS / FS l RETAILERS l PROVIDERS
HOINTERIs a fully automated store run on software algo-
rithms and machinery that closes the gap between
online and brick and mortar marrying digital’s ins-
tant gratification with in-store benefits.
Source: Psfk I How to close the gap between on-
line and brick and mortar, May 2013
See the videos: http://www.youtube.com/watch?v=2ZjWwlzRYBM
http://www.youtube.com/watch?v=r-9tYnXntrQ
BANKS / FS l RETAILERS l PROVIDERS
MACY´SIs expanding their capacity to fulfill online orders
from stores as part of its “omnichannel” push, es-
sentially turning their hundreds of retail locations
into local distributions centers.
Source: Forbes I Macys, others turn stores into on-
line fulfillment centers, January 2011
BANKS / FS l RETAILERS l PROVIDERS
BRAUNBraun´s website is designed to disrupt the shopper
experience dropping context as shoppers move
between touchpoints: the “where to buy” function
directs shoppers to retailer websites; however all
context about the products that the shopper was
researching is lost in the transition.
Source: Forrester I Managing The Cross-Touch-
point Customer Journey, December 2012
BANKS / FS l RETAILERS l PROVIDERS
BURBERRYIs a very good illustration of online-offline coordi-
nation: 60% of its customers shopped online and
then picked up their products from the store. Bur-
berrys new flagship store on Regent Street is cu-
rrently the best example of truly omni-channel ins-
tore approach.
Source: Webcredible, Omnichannel Report, 2012
BANKS / FS l RETAILERS l PROVIDERS
BANKTRONMultichannel online banking product BANKTRON
helps finance institutions to maximize cost savings
and bring a unified user experience across different
channels and devices, while retaining core legacy
systems.
See the video: http://www.youtube.com/watch?v=_bT3vMVeIV4
BANKS / FS l RETAILERS l PROVIDERS
LODO SOFTWAREProvides a full range of integrated financial services
using a powerful, predictive analytics engine to de-
liver a personalized customer experience anytime,
anywhere, on any device.
Source: Finovate I Lodo software launches d3 banking to help
banks deliver a personalised customer experience, May 2013
BANKS / FS l RETAILERS l PROVIDERS
SAPCompletes Acquisition of hybris to Help Businesses
Deliver Seamless Commerce Experience to Custo-
mers hybris’ Commerce Suite is an open, extensi-
ble omni-channel platform, with state-of-the-art pro-
duct content management and unified commerce
processes designed to give a business a single view
of its customers, products and orders, and its cus-
tomers a single view of the business.
Sources: Forbes I Smoothing the kinks in your omnichannel strategy, Au-
gust 2013
www.news-sap.com/sap-completes-acquisition-of-hybris-to-help-bu-
sinesses-deliver-seamless-commerce-experience-to-customers/
BANKS / FS l RETAILERS l PROVIDERS
IDINTERACTIDInteract Demand Exchange platform leverages
Big Data analytics to pluck demand signals from
a sea of social, mobile and customer relationship
management (CRM) data sources and deliver real-
time, context-aware insights for targeted customer
engagement.
Source: www.enterpriseappstoday.com/crm/dinteract-launches-demand-
exchange-cloud.html
Cmswire I Customer Experience idinteract creates personas based on
multichannel big data for targeted digital marketing, December 2012
See the video: http://www.youtube.com/watch?v=nVzJq-W-XGQ
BANKS / FS l RETAILERS l PROVIDERS
SUNDAYSKYEnables organizations to dynamically embed cus-
tomer-specific personal data and details into a vi-
deo related to a product or service, and then deli-
ver the custom how-to video for that specific client.
Sources: Brandchannel I SundaySky’s SmartVideo Trans-
forms Consumer Data into Digestible Videos, June 2013
www.gartner.com/document/2428616
www.forbes.com/sites/petercohan/2012/10/15/sundaysky-
smart-videos-boost-customer-service-productivity/
BANKS / FS l RETAILERS l PROVIDERS
WALKMEIs an interactive online guidance system, enabling
organizations to overlay on-screen ‘Walk-Thrus,’
onto their sites and apps. WalkMe encourages end-
user self-service helping user complete complex
tasks and making any online process intuitive.
Sources: www.gartner.com/document/2428616
betanews.com/newswire/2012/10/26/walkme-worlds-first-interactive-
website-guidance-system-announces-5-5-million-funding-round-from-ge-
mini-israel-ventures-mangrove-capital-partners-and-giza-venture-capital/
BBVA & the OmnichannelWe are living in the consumer’s era. With internet and the new possibilities technology provides, customers have more power than ever (empowered consumer). The only source of sustainable competitive advantage comes from having a strategy based on the “obsession” for understanding, delighting, connecting and serving customers.
the BBVAexperience
GLOBALSNAPSHOTS
Within this reality, customers choose to
interact with companies through any
channel, at any time and from wherever they
may be, in a simple, convenient and pleasant
way - in short, they are demanding an om-
nichannel experience.
To provide an omnichannel experience means
to go a step beyond the multichannel, over-
going the concept of channels as “silos”, the
connectivity gaps between channels and the
limited supply in digital channels.
The omnichannel vision is already being ap-
plied in certain consumer-related areas, such
as in the ROPO effect (research online, pur-
chase offline), which describes the customer
who researches on the internet and buys in
the physical channel, or in some models de-
veloped in the distribution industry, such as
the online purchase and in store pick up, or
the purchase of geolocated deals.
How can we get an omnichannel experience?:
Developing a complete offering across all channels (“full channel choice”), with a strong focus on digital distribution channels (internet and mobile).
Providing a seamless experience (“seamless journeys”) in those processes in which the client uses and combines several channels.
Generating a consistent experience regardless of the channel the client is using.
In banking there is no doubt that omnichan-
nel is the way to go. The key is to be able to
articulate this process and to generate a strate-
gy that results in a differentiated omnichannel
experience for customers, increasing their sat-
isfaction, recommendation and engagement.
BBVA is a pioneer in having an omnichannel
vision and strategy. A strategy based on the
following pillars:
Based on a customer-centric vision, this strat-
egy will be implemented with a clear message:
“BBVA Banking Anywhere” (BBVA donde estés),
which is the main message of the first global
campaign for a bank in the omnichannel field.
BBVA wants to offer its customers the best way
to access its products and financial services,
in a fast and easy way, wherever they are and
with their channel of preference. BBVA wants
to make sure its clients know that these ser-
vices are available and that they understand
their benefits – they can choose how they
want to connect with us. This is the transfor-
mation path designed by BBVA to make the
omnichannel vision happen.
Become real omnichannel,
increasing sales and transactions in
non-branch channels
Raise digital channels penetration in our client base and
become leaders vs. competitors
Become the bank best valued in Customer
Experience in all geographies, segments
and channels (IReNe)
Innovation Forecast
The journey towards customer centricity is really just beginning. Though we are continuously learning as we try to figure this out; here is our sharing, so far, on the customer experience framework, the design, and keys for survival in this new world.
Source: Infosys | Finsights, January 2013
A new frameworkMultidimensional context,
Multi-device usage no
constant environment.
Holistic approach. Systems thinking
The old frameworkOne environment while
performing a task.
Segregated approach. Linear thinking:
Personas (user profile)
Contextual inquiry – ONE context
Single channel evaluation
Sitemaps, wireframes
Navigation design
Design consistency
Efficient task design
Platform & resolution optimized designs
Personas + “day in the life” + user journey
Multi-dimensional Usage scenarios
Cross-channel experience analyses
Experience maps, systems models
Navigation design + cross channels connections
Design consistency + cross channel continuity
Cross channel task breakdown
Platform & resolution optimized + channel and device designs
Key Takeaways: for thriving in the new paradigmA few tips to help you thrive in this
new paradigm:
for designing CXA few tips to remember when
designing CX:
2. Consider Cus-tomer experience as top priority.
1. There is a new
framework for busi-
ness where people
are the new channel.
Put them first.
1. Move from a line-ar thinking framework to a holistic approach where there is no con-stant environment: mul-tidimensional context, multi-device usage.
2. Think first about
customer needs, then
about the technology
as enabler.
3. Organize around the customer lifecycle.
4. Optimize the journey, not the touchpoint.
3. Think like a cus-
tomer: not in terms
of silos, but in terms
of channel and device
agnostic interactions.
4. New ways of think-ing still need analytics and metrics. Identify CX initiatives that lead to tangible ROI and re-ward by customer-driv-en metrics.
Books & publications
In depthA list of links to other useful tools and resources that you may find useful as a supplement to the information offered on the ‘Experience Design’ report.
On theweb
Books & publicationsAccenture | Banking on Digital. Building Trust and Innovation in Financial Services, 2013.
Accenture | The RE-banking Revolution. Innovative Practices from Non-banking Companies that Banks Can Use to Improve
Customer Engagement, 2013.
Bain & Company | Customer Loyalty in Retail Banking, 2012.
CapGemini | The Future of Bank Branches. Coordinating Physical with Digital, 2013.
Celent | Top Trends in Retail Banking 2013, 2012.
Cisco IBSG | Winning Strategies for Financial Services Players in the Age of Mobile and Social Payments, February 2013.
Cisco IBSG | Winning Strategies for Omnichannel Banking, 2012.
EFMA/Kurt Salmon | Phygital and Other Digital Challenges for Retail Banks, 2013.
EFMA/Peppers&Rogers Group | Customer Experience in Retail Banking, 2010.
Forrester Research | Assess the Impact of Touchpoints Along the Consumer Path-to-Purchase, April 2013.
Forrester Research | How Chief Customer Officers Orchestrate Experiences, 2013.
Forrester Research | How to Engage Your Omnichannel Consumer. Brand Engagement the Consumer Way, 2013.
Forrester Research | The Rise of the Chief Customer Officer, January 2011.
Gartner | Agenda Overview for Banking and Investment Services, January 2013.
Gartner | Ed Thompson, analyst.
Gartner | Gartner Says Customer Experience Enters Top 10 CIO Priorities for 2012, April 2012.
Gartner | Online Banking as a Discrete Channel Is Obsolete, 2013.
Gartner | The Nexus of Forces: Social, Mobile, Cloud, and Information, June 2012.
Google | The Customer Journey to Online Purchase, 2013.
Google | The New Multi-screen World: Understanding Cross-platform Consumer Behavior, August 2012.
Google | The Role of Search in Credit Card Shoping, 2010.
Google | The Zero Moment of Truth for Credit Cards, 2011.
Google | Understanding Credit Card Researchers, 2010.
Harley Manning, Kerry Bodine and Josh Bernoff | Outside In: The Power of Putting Customers at the Center of Your Business,
2012.
Harvard Business Review | People Are the New Channel, April 2013.
Harvard Business Review | The Truth About Customer Experience, 2013.
Infosys | The Multi-channel UX Model, 2013.
Infosys | Technology insights for the Financial Services Industry, 2013.
iProspect | Omni-channel: The Marketing Evolution That Changes Everything, 2013.
Mapa Research | Digital Sales: Enhancing Existing Customer Relationships. Insight Report on Digital Sale Techniques across
Different Channels (Internet, Mobile and Tablet Banking), 2013.
McKinsey & Company | A Symphony of Separate Instruments: Cross-channel and Online Sales - CMO & Sales Office Forum:
Multichannel Delivery, 2013.
McKinsey & Company | Customer Journey Analytics and Big Data, 2013.
McKinsey & Company | Major Bank, Major Digital Transformation, December 2012.
McKinsey & Company | Winning the customer decision journey, December 2011.
Monitise/Future Foundation/InVision | M-commerce: What Consumers Want from Financial Institutions, July 2013.
Online Banking Report | FINovate Quarterly Q2 2013, 2013.
PricewaterhouseCoopers | Rebooting the Branch. Reinventing Branch Banking in a Multi-channel, Global Environment, 2013.
TNS | Direct Banks and the Future of Retail Banking, 2012.
Web
AdExchanger | Google Is Pushing An Omni-channel Mindset. Are You Ready?, 2013.
Bank Innovation | Increasing Customer Acquisition and Retention with Predictive Analytics, 2013.
Bank Marketing Strategy | All Bank Customer Experience Initiatives are Not Created Equal, June 2013.
Bank Marketing Strategy | Banking Leaders Discuss 2014 Strategic Planning Activities, July 2013.
The Banker | Social Banking in the Omnichannel Era.
Ben Evans | Twitter, canvases and cards, 2013.
Financial Times | Big Data in the Spotlight as Never Before, 2013.
FinExtra | ASB Bank Pilots Customer Video Conferencing Facility for PC and Mobile, 2013.
Finovate Blog | Lodo Software Launches D3 Banking to Help Banks Deliver a Personalized Customer Experience, 2013.
The Financial Brand | Experiments With Pinterest In Retail Banking Fail Miserably, 2013.
Forrester | Outside In: The Power of Putting Customers at the Center of Your Business (video).
Gallup | How Customers Interact With Their Banks, 2013.
Martin Gill | Agile Commerce - That’s Forrester’s Word for “Omnichannel”, Right?, 2013.
i95dev | Applying Gartner’s Nexus of Forces to Retail, March 2013.
Inside Intercom | Why Cards Are the Future of the Web, 2013.
Geoff Livingstone | What Comes First, Multichannel Integration or Social Business?, 2013.
MIT Sloan Review | Competing in the Age of Onmichannel Retailing, 2013.
Optirate | Retail Banking is more competitive than most believe, 2011.
Chris Skinner | Project New mBank. Perhaps the World’s Most Innovative Online Banking, 2013.
SmartCompany | The 12 sales trends that will drive 2013: Report sneak peek, December 2012.
Brian Solis | The Conversation Prism, 2013.
Wall Street Journal | Banks Using Big Data to Discover ‘New Silk Road,’ 2013.
webcredible | Omni-channel Customer Experience, November 2012.
alsoin thisissues
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
The Core Banking market is poised to grow through 2017; a modest 4% growth rate, steadily growing to a market size of $10.7B
Though decision-making related to core banking technology is dependent on local circumstances, three global trends are observed:
1. Banks are increasingly willing to consider core replacements, whether big bang or phased (which is dependent on size).
2. Cost and customer demands for agility are key drivers motivating banks to finally make the switch.
3. Vendor products have matured enough that the trepidation banks have typically felt may no longer be warranted.
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
Global Market Share, in percentages, of leading core banking technology providers
Celent analysis N= 1,276
ERI2%
Sopra3%Accenture 3%
Infosys 6%
SAP 6%
TCS6%
Oracle6%
Misys 14%
Temenos 21%
CSC 4%Other 5%
FIS24%
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Learn about Banking at Allied Irish Bank’s The Lab, a digital banking showroom The space at the Lab is divided into five zones:
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
1. The Quick Banking Zone: ATMs, card kiosks, phone booth, and social media wall.
2. The Product Zone: a showcase of AIB’s products, services, and innovations.
3. The Mobile Banking Zone: dedicated to mobile banking, featuring an interactive table and a display of AIB’s mobile banking devices/services.
4. The Lounge & Learning Zone: an area to interact with experts, with a digital learning wall and play area for children.
5. The Business Banking Zone: for business customers to network and conduct meetings, with remote access to specialists
Customers now choose how they wish to interact with AIB in the way that suits them best, said a spokesperson.
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
The 10 Best Mobile Banking Apps for iOS & Android Based on a recent analysis of mobile banking apps of the top 53 US banks, here are the 10 best apps for each platform:
Top 10 Highest Rated iOSMobile Banking Apps
1. RBS Citizens – 4.5 stars, 93% favorable reviews
2. Charter One – 4.0 stars, 91% favorable reviews
3. KeyBank for iPad – 4.0 stars, 83% favorable reviews
4. City National – 4.0 stars, 76% favorable reviews
5. Santander – 3.5 stars, 83% favorable reviews
6. Associated Bank – 3.5 stars – 76% favorable reviews
7. Huntington Bank for iPad – 3.5 stars, 75% favorable reviews
Top 10 Highest Rated Android Banking Apps01 - USAA – 4.6 stars, 95% favorable reviews
02 - RBS Citizens – 4.5 stars, 97% favorable reviews
03 - AmEx – 4.4 stars, 91% favorable reviews
04 - Wells Fargo – 4.3 stars, 90% favorable reviews
05 - BofA – 4.2 stars, 88% favorable reviews
06 - TD Bank – 4.2 stars, 88% favorable reviews
07 - Chase – 4.2 stars, 87% favorable reviews
08 - BB&T – 4.2 stars, 87% favorable reviews
09 - Regions – 3.9 stars, 80% favorable reviews
10 - Union Bank – 3.9%, 79% favorable reviews
Top 10 Highest Rated Android Banking Apps
1. USAA – 4.6 stars, 95% favorable reviews
2. RBS Citizens – 4.5 stars, 97% favorable reviews
3. AmEx – 4.4 stars, 91% favorable reviews
4. Wells Fargo – 4.3 stars, 90% favorable reviews
5. BofA – 4.2 stars, 88% favorable reviews
6. TD Bank – 4.2 stars, 88% favorable reviews
7.
Top 10 Highest Rated iOSMobile Banking Apps01 - RBS Citizens – 4.5 stars, 93% favorable reviews
02 - Charter One – 4.0 stars, 91% favorable reviews
03 - KeyBank for iPad – 4.0 stars, 83% favorable reviews
04 - City National – 4.0 stars, 76% favorable reviews
05 - Santander – 3.5 stars, 83% favorable reviews
06 - Associated Bank – 3.5 stars – 76% favorable reviews
07 - Huntington Bank for iPad – 3.5 stars, 75% favorable reviews
08 - US Bank – 3.5 stars, 71% favorable reviews
09 - Utrecht Bank – 3.5 stars, 69% favorable reviews
10 - Bank of the West – 3.5 stars, 68% favorable reviews
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
8 Social Media KPIs to track & monitor By tracking the right KPI’s, your company will be able to make adjustments to your social media strategy and budget. Below, an industry expert shares her Top 8 KPIs for Social Media:
1. Number of Fans and Followers
2. Demographics and Location
3. Number of Active Followers
4. Likes and Shares
5. Comments
6. Mentions
7. Retweets
8. Traffic Data
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
Consumers are very loyal to their favorite payment instruments A recent study conducted by the Federal Reserve Bank of Boston reveals that consumers ‘almost never’ deviate from their favorite payment types, but that they also aren’t likely to use their top payment method all the time.
In regards to mobile payments and wallets, though consumers are hardwired to pay like they already pay, … they’re kind of willing to switch around a little bit within [payment types], that at least gives you the kind of beachfront for mobile to get in there, and for people [to] try it out.
80%70%60%50%40%30%20%10%0%
5 9.8 15.5 20.7 28.3 34.7 39.5 43.7 47.7 55 57.7 65 71.1 82.3 85 91.7 103.5 110
Pay type by household income.
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
These 5 Customer-Centric habits enabled Sprint’s dramatic turnaround, helping the company to go from “zero” to “hero” in 5 years
Listen Understand what customers value, act on their feedback
Think Make smart, fact-based decisions
Empower Give employees resources and authority to serve customers
Create Produce new value for customers and company
Delight Exceed expectations, be remarkable.
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
Eleven “wow” stats that researchers and marketers should know about mobile. The stats tell us that mobile is just starting; people are loving it, offers richer data, and is a global phenomenon
Mobile broadband subscription growth averages 40% annually, climbing from 268 million in 2007 to 2.1 billion in 2013.
In 2013, there are almost as many mobile-cellular subscriptions as people in the world, with more than half in the Asia-Pacific region (3.5 billion out of 6.8 billion total subscriptions).
More people have access to mobile phones than to toilets or latrines.
Similarly, more people are users of mobile devices than owners of toothbrushes.
Mobile usage makes up about 15 percent of all Internet traffic—and it’s not showing any signs of slowing down. Mobile is already huge, but it’s just getting started.
At the end of 2013, mobile search queries in South Korea are expected to exceed the number of PC queries. Mobile isn’t just a West thing.
Over one third (37%) of time spent consuming digital media is now spent on mobile devices rather than PCs.
In 2012, 72 percent of all newly-acquired mobile devices are smartphones. This is great news for researchers who would like to take advantage of the rich features of smartphones.
The average response time for emails is 90 minutes; for text messages, it’s 90 seconds.
Compared to traditional coupons, mobile coupons have 10x the redemption rate.
More than three quarters of the world’s mobile phones are located in the developiing world—and growth is set to rocket.
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In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
Can the big boys play the crowd financing game? Say hi to 2.0
Call it crowdfunding 2.0. Established companies are using Kickstarter and the like to launch new products, paid for by a built-in customer base before they hit the production line. … The appeal is not limited to raising funds. ‘Just as important, we’re looking to get feedback,’ he says. ‘This campaign is about market messaging and product viability. It’s forcing us to think about how this product should be sold.’
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
The EU is a player in the App Economy, producing 22% of world’s apps
The App Economy in the EU28 countries generated revenues of €10.2 billion in 2012 and is projected to grow to €14.9 billion in 2016, according to VisionMobile. The European Commissioner, Neelie Kroes, pointed out the app economy is a great example of what happens if you create the right environment; give people the framework to create. Borderless, open, and as innovative as your imagination.
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
iPhone fans, fear not, as Apple’s response to Galaxy Gear is near With the introduction of iPhone 5s, Apple also launches the M7 chip, which runs alongside the new iPhone’s main A7 processor, (and) opens up opportunities for developers of health-monitoring gadgets and apps, as well as other connected devices. … (it) enhances the iPhone’s core capabilities, and also makes it a better hub for wearable accessories, whether they are made by Apple or anyone else.
The M7 is an example of a clever way to start learning about wearables and what consumers want, without getting them to pay for [a dedicated device] right now,’ says Carolina Milanesi, mobile analyst at Gartner.
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Seeing is Banking: video banking to enhance customer engagement According to a recent industry report, there are four reasons to adopt video banking:
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
The imperative for branch redesign. In response to business conditions, declining branch foot traffic, and growth in digital channel usage, banks must increase both the efficiency and effectiveness of the branch channel. Video can play a role.
Consumer acceptance. Once primarily a business application, mass market usage of video is burgeoning. Its appeal extends well beyond Gen-Y.
Customer engagement. As more customer interaction occurs in digital media, banks must devise ways of engaging customers digitally. Banks can no longer afford to view digital channels simply as a mechanism for low-cost transactions. Video and chat can play a role.
Solution viability. Modern video alternatives are light years ahead of earlier solutions, improving efficacy at a much lower cost than before.
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In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
EMC’s Big Data expert shares his point of view on best practices for projects and success
The Key Takeaways:1. Start a Big Data project by concentrating on business
processes already supported by BI (Business Intelligence) and data warehouse enviornment. Leverage Big Data to take that business process to the next level.
2. Apply insights from diverse sources: customers, products, operations, etc. By applying these insights, for example, organization can re-wire their interactions with customers to build a more engaging, more sticky, more profitable relationship.
3. Find a positive spiral. Big Data has a liberating organizational effect whereby once users start to experiment with data and see positive results, more people in the organization will get involved to share ideas and collaborate around Big Data. No longer do you have a single department head making decisions around data, but rather people working together to come up with new ideas as to how to solve key business problems.
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
Future of Work: Evolve or go Extinct At the recent SWSX V2V event, experts were discussing the future of work. Here is what some believe awaits around the corner regarding the future of work:
■■ Companies are less committed to com-mitment – Gene Zaino, MBO Partners
■■ Our children’s generation will have ten jobs by the time they’re 40 – Gary Swart, oDesk
■■ The winners are those who can learn fast, have a strong network and the best online reputation – R “Ray” Wang, Constellation Research
■■ The best talent will have even more options in this new economy –Maynard Webb: entre-preneur, author, investor & company director
In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
Trending issues
Core Banking Platform
New Formats
Mobile Banking
Social Business
Mobile Payments
Customer-Centricity
Brands & Branding
Crowd Finance
App Ecosystem
Gadgetology
New Banking Concepts
Big Data
Future of Work
DIY
With 3D Printing, the complexity is free In large organizations, in the old days, a designer would have to design the product, then … build the machine tools to make a prototype of that part, which could take up to a year, and then it would manufacture the part and test it, with each test iteration taking a few months. The whole process ... often took ‘two years from when you first had the idea for some of our complex components.’
Today … computer-aided design software now design the part on a computer screen. Then they transmit it to a 3-D printer, which is filled with a fine metal powder and a laser device that literally builds or ‘prints,’ the piece out of the metal powder before your eyes, to the exact specifications. Then, you immediately test it — four, five, six times in a day — and when it is just right you have your new part. To be sure, some complex parts require more time, but this is the future;” the complexity is free.
Though the example alludes to how a large multinational corporation is approaching 3D Printing, the “complexity is free” concept can be applied to everyone, including makers or DIYers. It’ll be interesting to see how they take advantage of this concept moving forward.
Core Banking PlatformsHere you will find articles related to basic IT infrastructure which supports main banking processes, including technologies such as SOA, WOA, digital platforms, etc.
New FormatsBased on design principles focused on customer insights, New formats offers retail banking customers more channels which are more granular and highly functional; a consistent, simple, and collaborative universal user interface; real-time intelligent processes; highly personalized solutions; and is open to social networks and the web. Examples of these new formats are provided here.
Mobile BankingRelevant news about mobile banking platforms (which enable customers to access financial services, such as transfers, bill payments, balance information and investment options) can be found here.
Social BusinessSocial Business is the integration and use of social technologies by an organization, which includes social media/work media, crowd listening, crowd intelligence, crowd working, etc. Stay tuned to see how this space will evolve.
Mobile PaymentsThe process of using a hand-held device to pay for a product or service, either remotely or at a point-of-sale. Up to date information is provided.
Customer-CentricityCustomer-centricity is the organization’s understanding of customers at a granular level and the capability to create, deliver, and capture different kinds of value propositions to different groups of customers, based on customer understanding.
Brands & BrandingMarketing in the modern world have many channels to reach consumers at their disposal: (smart)phones, tablets, PCs and (smart)TVs and different ways to communicate their brands, such as traditional ads, banner ads, SMS/MMS, etc.
Crowd FinanceA process where small amounts are money raised for a definite purpose, Crowd finance sources funds collectively from individuals. In other words, the money comes from a wide range of individuals and not from a single entity. Read more about it here.
App EcosystemThere are 5 main components in the current Apps Ecosystem: connectivity, devices, OS platforms, app platforms, and apps; along with related products and services providers (MEAPs, Mobility as a Service providers etc.).
GadgetologyGadgets are everywhere and it seems that there are more and more each passing day. We are moving towards a contextual computing environment and, as a result, the number and functions of gadgets are poised to grow (thanks in part to the internet of things). In this section, we share a word or two about gadgets.
New Banking ConceptsBanks around the world continuously explore new approaches to strengthen customer relationships, both in the virtual and the physical worlds; including Virtual assistants, natural language search tools, new marketing tools, different segmentation (children, gen Y,…) etc. This section will cover news along these lines.
Big DataIt been said, “what gets measured, gets managed.” The Big Data trend offers organizations an opportunity to manage just about everything. Here we’ll share stories about Big Data capture, curation, storage, sharing, analysis, and visualization.
Future of WorkWork, increasingly, is not about where you do, but what you do. The future of work is more flexible and collaborative; and values are going to play an important role, especially corporate values. The way we work is changing fast … stay tuned.
DIYDo It Yourself (DIY) refers to a trend of people doing “projects” to either be creative/recreational and/or cost-saving activity. This trend becomes really interesting as new technologies enable new functionalities such as 3D printing, health/wellness, etc, which help empowers individuals; this may even change the we think about businesses in the future.
EACH SECTION EXPLAINED
The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
Technology trends
Techcrunch Disrupt NY 2013 Recap After some dark months in terms of news in well-defined tech trends, in which the good ideas seemed to be sleeping after the SoLoMo’s big hangover, we can see some light.
In the last edition of TechCrunch Disrupt 2013 (NY), there was a big
chat about the death of Innovation (good, it seems that I was not the
only one who was bored and worried). The conclusion was that Inno-vation is not dead, even more, there are some green sprouts emerging.
Tired of the social networking fever,
the apps without a real value, or with
a confusing business plan, are sent to
the back of the closet (except for Snap-Chat and Vine, which are still considered
potential apps, despite being from the
previous batch due to the “real time” con-
cept), and those which offer great solu-
tions to problems are arising. Investors
are now very concerned about where
they put their money, not only looking for
great products but also great founders.
What do I mean?
For example, now there’s no need to meet
new interesting people around you in real
time, but organize the contacts you already
met (Glider); there’s no need to checkin places
anymore, but choose where you go to have
dinner (new focus of Foursquare, still alive and
growing!!). More examples below:
■■ Productivity a big business: These apps
definitely make our life and work easier. Now
you can send the attachments of your mails
directly to a file in the cloud with Kloudless,
organize you mail with Mailbox or Handle,
or you meetings with Retrace.
■■ Online for offline: This is still a big trend,
for apps as well as devices. The success of
AirBnb lead the launch of apps like EatWith,
for eating homecooked meal in someone’s
home and allowing locals to turn their ho-
mes into temporary dining destinations for
curious visitors looking to experience so-
mething new. Also, Taskrabbit is the seed
of Bidzy, a professionalized platform for last
minute tasks and services.
■■ Bitcoin: still too early. Acording to Square,
Stripe or Paypal, is still too early to know what
it really means for economy. Bitcoin may
change the landscape and the way in which
digital products are created, however some
speakers (like Hill Ferguson from Paypal) stay
a little skeptical saying that the problem that
Bitcoin is trying to solve is not clear at all (if
any), and wondering if their idea is the best
way to achieve it. Let’s wait and see.
■■ Hardware was the co-star of the event. Some
interesting solutions where shown, like KISI,
a Keyless home access management plat-
form, or KeenHome, remote vents for your
central air conditioning and heating systems
that can be controlled from your smartpho-
ne to optimally direct air where you actua-
lly need it, or away from places you don’t.
See video
Source: BBVA Digital Technologies & Omnichannel
Two special mentions:RAMBLER, the winner of the Hackathon con-
test: a web app that lets users view their credit
and debit card transactions on a map. (it may
sound familiar to all those who fought for in-
cluding this feature at the new bbva.es)
ENIGMA, the winner of Startup Battlefield:
a web service that allows its users to dig into
a vast amount of publicly available (but hard-
to-obtain) data. The service pulls its data from
more than 100,000 data sources, but the pro-
cess of sifting through all this information is de-
ceptively simple. Just a quick search for a per-
son’s name and company brings up multiple
previewable tables of information,
and jumping in and playing
with data is thoughtfully
executed.
Sources:
insideintercom.io/why-cards-
are-the-future-of-the-web/
ben-evans.com/benedict-
evans/2013/6/18/canvases
ANY EXISTING OR PROSPECTIVE
CUSTOMER
Friends
Interests
Friends’ Interests
Location
Demography
...
3rd PARTY SERVICES + DATA
Loyalty Cards
Aggregators
...
NEWS
LOCAL NEWS
NEWS BASED ON YOUR INTEREST
NEWS YOUR FRIENDS HAVE
READ
NEWS PEOPLE LIKE YOU HAVE READ
WORLD NEWS
The emergence of “Cards”Seeing that we are now in the post-PC era, there is a trend that is picking up some steam: cards, cards, and more cards. In short, Cards “are fast becoming the best design pattern for mobile devices. We are currently witnessing a re-architecture of the web,... towards completely personalized experiences built on an aggregation of many individual pieces of content:”
■■ Individual’s interests, preferences, and behavior■■ Context of location and environmental■■ Interests, preferences, and behavior of friends■■ The ecosystem of targeting advertising
Many leading companies are moving to-
ward Cards: Google Now. Twitter. Pin-
terest...
Also, many other leading technology compa-
nies are moving towards Cards: Facebook, Spo-
tify, Apple, etc. As Inside Intercom puts it, “If the
predominant medium of our time is set to be
the portable screen (think phones and tablets),
then the predominant design pattern is set to
be cards. The signs are already here …”
CONTENT FORMAT THAT IS SO FAMILIAR AND FLEXIBLECards, as a content format, go back to 9th cen-
tury in Imperial China and we’ve been using
cards ever since. Today, we are surrounded by
them: debit/credit cards, business cards, gov-
ernment issued cards, coupons, card games,
personal cards, and the list seems to go on
and on.
Also, Cards can present content in a more flex-
ible way. “They can be turned over to reveal
more, folded for a summary and expanded
for more details, stacked to save space, sort-
ed, grouped, and spread out to survey more
than one. … Cards are perfect for mobile de-
vices and varying screen sizes. … They can be
stacked horizontally, adding a column as a tab-
let is turned 90 degrees. They can be a fixed
or variable height.”
Moving forward, it’s going to be interesting to
see how this new content format will bring in
the future. “Cards are the next big thing in de-
sign and the creative arts.” Let wait and see
how this trend will affect the way we manage
and consume content with post-PC devices.
DESKTOPTABLET LANDSCAPE
TABLET PORTRAITMOBILE
SUMMARY CARD REGULAR CARD EXPANDED CARD
The projects participating in this start-up com-
petition are born from the illusion of people
who believe they can contribute to society with
the implementation of their very own project.
These are innovative and technology-based
initiatives launched by start-ups less than two
years old and for whom the 100,000 Euros
of the award and the opportunities associated
with a competition such as BBVA Open Talent
can make much a difference.
All the initiatives have in common their drive to
do things differently through innovation and
their enthusiasm for creating something new
from scratch.
Open Talent is an international BBVA initiative
aiming to boost innovative entrepreneurship
and establish a real network with start-ups
showing potential to lead the changes in the
technology and banking sectors, and with all
the other stakeholders of the entrepreneurship
ecosystem as well.
The 2013 edition of the start-up competition
has been so far the most international one, reg-
istering a record of participation. A total of 916
projects of 24 countries around the globe have
been submitted, mainly from Colombia, Spain,
Argentina, Mexico and Peru. Furthermore, the
participating projects have received more than
70,881 online votes through the Innovation
Centre’s website and social networks.
Discover the winning projects of the BBVA Open Talent 2013 competition
Open Talent 2013
Bernat Ollé and Karen Márquez were elected from the 10 Spanish winners of Premios Innovadores Menores de
35 años organized by MIT and the BBVA collaboration. The youngers presented there projects at EmTech
España 2013 (Valencia).
Innovador del Año and Innovadora
Social, at EmTech Spain
IM35
The third edition of the conference EmTech
Spain held on 5 and 6 November, analyzed the
economic impact of innovation and techno-
logical entrepreneurship. EmTech was also the
escenario where the winners of Innovadores
Menores de 35 presented there projects. With
those awards, MIT, supported by BBVA, recog-
nizes young people who are giving a solution
to real problems through technology.
Bernat Olle was the youngest elected as In-
novador del año, among the 10 selected Spanis,
for his disruptive breakthrough in the treat-
ment of diseases and the way he bring it to
market.
“Their innovative ideas and the way to imple-
ment them and bring them to market success-
full have been key to his victory “, according
to Pedro Moneo, director of the Spanish edi-
tion of MIT Technology Review.
Alongside Ollé, the other main entrepreneur
was Karen Marquez, chosen as Innovadora
social, by proposing a new approach to early
childhood education.
IM35
The Innovators under 35 awards, organized
by the Massachusetts Institute of Technology
(MIT ), through MIT Technology Reviewy pu-
blication since its first edition in 2010 has the
support of BBVA, has great international pres-
tige and is a strong impetus for young people
in developing their innovation projects.
“These 10 young Spanish are an example of
the ability of innovation and entrepreneur-
ship that is in the country,” said Hugo Najera,
Chief Innovation Officer of BBVA. “Investing
in research and innovation is essential to pro-
mote competitiveness, at a time when full
technological change, economic, social and
environmental “stressed Nájera.
“We should be proud of our young people,
who have the courage and ingenuity of the
major problems facing global concern and
provide real solutions that have a real impact
on society,” said Moneo.
Innovators Under 35 in Latin America
Argentina and Uruguay – 20 November
Peru – 30 November
Chile – December
The 10 winners will present their projects
during the Innovators Under 35 awards
ceremony.
IM35
BBVA invites developers to create apps with transaction data of its cards in the Innova ChallengeApps for public institutions, for consumers and data visualization. These are the three categories of the first edition of Innova Challenge Big Data, a competition for which BBVA is giving access for the first time to a set of real transaction data of its cards. The best apps in the different categories will be awarded with 15,000 Euros.
INNOVA CHALLENGEBig Data
Open and collaborative innovation. Based on
these pillars, BBVA wants to build a community
of developers around its data platform, and for
this purpose the bank is now allowing third par-
ties to create new content and services using
real transaction data of its cards.
With the launch of the Innova Challenge Big
Data, BBVA has become the first Spanish bank
to open an API for developers to create apps for
public institutions, individual consumers or even
for the creation of new content visualizations.
Registration to participate was opened on 24
September and will end on 3 December, 2013.
This international challenge will award prizes to
a total value of 90,000 Euros (15,000 for the
winner, 10,000 for the runner-up and 5,000
for the third prize in each of the three catego-
ries).
Developers may access the API to obtain a set
of anonymous and aggregated transaction
data generated by banking cards in the cities
of Madrid and Barcelona. In order to maximize
this platform, BBVA has organized a series of
free workshops to show how to work with
open data.
You may find detailed information about the
Terms and Conditions and how to participate
in the Innova Challenge Big Data website.
INNOVA CHALLENGEBig Data
CONTRIBUTORS TO THIS ISSUE
Alfonso Bey
Reyes Bolumar
Vanesa Casadas
Luz Fernandez
Antonio Garcia
Israel Hernanz
Marta Javaloys
Luz Martin
Manolo Moure
Multichannel Strategy Team
Carlos Perez
Javier Sebastian
Elena Solera
Ignacio Villoch
Gustavo Vinacua
“Phil” Sang G. Yim
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