Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial...
Transcript of Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial...
![Page 1: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/1.jpg)
Here, There, Everywhere:
The Rise of Omnichannel
Banking
Chris Fleischer
Market Research Manager
D+H
@ccfleischer
![Page 2: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/2.jpg)
Omnichannel is more than a buzzword �
![Page 3: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/3.jpg)
Omnichannel is more than a buzzword �
![Page 4: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/4.jpg)
Consumers are doing “omnichannel” already �
![Page 5: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/5.jpg)
What Has Become of Our Channels?
![Page 6: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/6.jpg)
Anyone think it’s getting easier?
6
![Page 7: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/7.jpg)
Stop the Craziness!
• Chris Skinner, “Financial Services Club Blog”
– April 2012, “Never Mind the Channels”
– “Mobile is not a channel. Internet banking is not a channel. Nothing is a channel! We don’t think, ‘I’m on my mobile channel and I shall switch to my internet channel later. I’m doing digital stuff and will soon be doing physical stuff’. My digital stuff IS my physical stuff”
It’s time to rationalize our channel strategy and understand that members use multiple channels – the rise of omnichannel banking
![Page 8: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/8.jpg)
The evolution of channel management
![Page 9: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/9.jpg)
Agenda
• Channel Activity – Trends and Growth
• Branch Banking
• Online Banking
• Mobile Banking
• Rise of Omnichannel Banking
• Recommendations / Concluding Thoughts
• What’s Next?
![Page 10: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/10.jpg)
Channel Activity - Trends
• Online banking of the late 1990s spurred
“the end of the branch”
• While online banking grew in the 2000s, it was matched
(precipitated) by growths in broadband availability and
consumer acceptance of online payments
• Online banking users are still growing at a 2-4% CAGR,
but expected to flatten out by 2015
![Page 11: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/11.jpg)
Channel Activity - Trends
• With the maturation of online banking and the rollout of “Mobile 3.0”, some are suggesting that “the end of the branch is here
• � really, this time”
• Rather, we’re more likely in an era of change embracing “the end of the branch � as we know it”
– Transactions are declining
– Non-interest income is being attacked
– Average transaction costs are rising
– Self-service channels are taking up the decline and more
11
![Page 12: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/12.jpg)
Channel Activity – Growth
Source: CEB TowerGroup
![Page 13: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/13.jpg)
Channel Activity – Growth
13Source: CEB TowerGroup
![Page 14: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/14.jpg)
![Page 15: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/15.jpg)
Channel Preferences
![Page 16: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/16.jpg)
![Page 17: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/17.jpg)
Branch
Banking
![Page 18: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/18.jpg)
Branches get a bad name in non-
Financial Services news, too!
![Page 19: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/19.jpg)
Strong divide in consumer usage of branches
![Page 20: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/20.jpg)
Pressure to reduce expenses
![Page 21: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/21.jpg)
Branch Banking
• Important channel, still influential,
but under attack as the “costly
alternative channel”
• Trends declining:
# of branches
# transactions, and
% of new accounts
• Startups (Simple, Moven, GoBank) claim the branch
model is dead
• Yet, branch is still the channel of choice for opening up a
new account
![Page 22: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/22.jpg)
Branch Banking
![Page 23: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/23.jpg)
Branch Banking
![Page 24: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/24.jpg)
Branch Banking
![Page 25: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/25.jpg)
Branch Banking
![Page 26: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/26.jpg)
Branch Banking
• What is growing in the branches?
– New technologies• Back Counter Check Capture / Teller Capture
• Cash handling / dispensers
• Staff Management / Workforce Automation
• Video conferencing for member contact with remote SMEs
• Scheduling branch visits online or via mobile
– Sales & Service culture (sales through service)• Business Intelligence technologies are coming to the front lines;
Combined with CRM tools to better understand the member relationship
• Account opening processes have become more efficient with stronger
cross-sell results
• Use of tablets in the branch for product introduction and account
origination
![Page 27: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/27.jpg)
Branch Banking
![Page 28: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/28.jpg)
PNC’s “Pop Up Branch”
28
![Page 29: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/29.jpg)
Branch Mobility
29
![Page 30: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/30.jpg)
Question?
How many of you are planning to grow your
branch presence over the next 3-5 years?
How many of you are planning to shrink your
branch presence over the next 3-5 years?
![Page 31: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/31.jpg)
FIs are planning for growth
31
![Page 32: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/32.jpg)
Branch Banking
32 Synergistics, 2013
![Page 33: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/33.jpg)
Branch Growth correlated to CU Growth
33
![Page 34: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/34.jpg)
Branch – Summary
• Strengths:
– Member acquisition, cross sales, retention,
personalized member service, presence in the
community, reputation
• Weaknesses:
– Highest cost channel, not considered a “green choice”,
Gen Y utilizes less than other generations
• Opportunities:
– Branch re-design and use of newer technologies
• Threats:
– Direct banks, Pre-Paid Debit Card Services
34
![Page 35: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/35.jpg)
Online
Banking
![Page 36: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/36.jpg)
Online Banking Today
The prospects remain strong
• 80 million users (US)
– 2-4% annual growth
• Consumers value convenience
However ...
• Consumers don’t want to pay for it
• Demand for more functionality
• Demand for better experience
– Comparing to Amazon, Facebook, etc
![Page 37: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/37.jpg)
Online Banking
• Online banking users growing at CAGR of 2.0%
• Online banking transactions are growing at
CAGR of 4.0%
• The number of transactions online account for as
many transactions occurring in branches and at
ATMs � combined
– Over 30 billion transactions
Source: TowerGroup
![Page 38: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/38.jpg)
Online Banking
![Page 39: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/39.jpg)
Online Banking
![Page 40: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/40.jpg)
Online Banking
![Page 41: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/41.jpg)
Online Banking
![Page 42: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/42.jpg)
Growth in new lending accounts online
![Page 43: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/43.jpg)
Online Banking
• New Technologies & Features
– Expanded payments – Bill Pay, A2A, P2P, Presentment
– Remote Deposit Capture
– Personal Financial Management
– Targeted Marketing
– Online Account Opening and Funding
– Account Alerts
– Rewards
– Live Chat
– User Experience – Simpler views / Dashboard / Widgets
• However, be aware of personalization / customization that might lead to member service issues
• Table Stakes – Security and Fraud Prevention
![Page 44: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/44.jpg)
Online Banking
Source: Celent
![Page 45: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/45.jpg)
Online Banking
![Page 46: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/46.jpg)
Online Banking – Summary
• Strengths:
– Lower cost, member acquisition, “green choice”, targets
Gen Y
• Weaknesses
– Less “face time” with member
• Opportunities:
– Improvements in cross selling, retention, reward
recognition
• Threats:
– Mobile is overtaking online for some functions such as
P2P and remote deposit capture46
![Page 47: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/47.jpg)
Mobile
Banking
![Page 48: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/48.jpg)
Mobile Does Everything � Even an ATM!!!
![Page 49: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/49.jpg)
Mobile is Fun! And Intense!
![Page 50: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/50.jpg)
Mobile Banking
Google Vice President Vic Gundota:
“’Mobile First’ … when we announce new services for
desktop computers … we will debut an equally
powerful mobile version”
![Page 51: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/51.jpg)
Mobile Banking
![Page 52: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/52.jpg)
Mobile Banking
![Page 53: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/53.jpg)
Mobile Banking
![Page 54: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/54.jpg)
Mobile Banking – Voice Banking
54
![Page 55: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/55.jpg)
Mobile Banking
• New Technologies & Features– Expanded payments – Bill Pay, A2A, P2P
– Remote Deposit Capture
– Personal Financial Management
– Targeted Marketing
– Account Opening & Funding (or w/out funding .. ex: Citi)
– Account Alerts
– Click to Call
– User Experience – Simpler views / Dashboard
– Pre-staging ATM visits (to access ATM without a card)
– Augmented reality for branch / ATM location
• Table Stakes – Security and Fraud Prevention
![Page 56: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/56.jpg)
Mobile Banking
Source: Celent
![Page 57: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/57.jpg)
The State of Mobile Remote Deposit Capture
• US FIs offering mRDC to grow from 2,300 to 6,000 in 2016
• 700 FIs deployed mRDC in the first six months of 2013
leading to 10 million new users
• End users to grow to an estimated 60 million in 2016
• 77% of respondents reported no RDC losses in 2013
• 9% said they had a single loss incident
• Chase notes that mobile deposit costs about 3 cents per
transaction vs. 65 cents per transaction through a teller
• B of A notes 10% of deposits coming through mobile
![Page 58: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/58.jpg)
Mobile Only consumers don’t really exist
• Myth: Gen Y is Mobile-Only (Javelin)
• “Mobile-only” consumers don’t really exist. Although 41% of Gen Y consumers are active monthly users of mobile banking, very few avoid other banking channels. Not only are mobile-only consumers scarce within Gen Y, but also among all age segments. Today, only 2.4% of Gen Y consumers are mobile-only bankers vs. 1.4% across all other segments of the population. Millennials still turn to a variety of channels to manage their finances. Although adoption rates among mobile/smart-device users are rising, the reality is that most consumers aren’t yet ready to commit to a banking experience that is exclusively phone and tablet based.
![Page 59: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/59.jpg)
Mobile Banking – Summary
• Strengths:
– Lower cost, retention (me, too), “green choice”, targets Gen Y, alerts
• Weaknesses:
– Not ideal for member acquisition and cross sales, lacks human touch
member service
• Opportunities:
– Mobile usage across other industries will help drive consumers to
consider managing their finances via the same device they use for
shopping;
Mobile Payments!
– Pricing – Fees for P2P / A2A payments, POS payments, remote
deposit capture
• Threats:
– Lacks 1 to 1 relationship building59
![Page 60: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/60.jpg)
Concluding
Thoughts
![Page 61: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/61.jpg)
“If you believe branches are dead, then so are you.”
(Chris Skinner)
![Page 62: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/62.jpg)
Rise of Omnichannel
• Members are using multiple channels
• Consistency
– For employees – 360 degree view
– For consumers – user experience, 360 degree view
– For marketing – relationship management
– For security and compliance
• Products and Pricing
– How many have relationship or packaged pricing related to channel
usage?
– How many are considering it?
![Page 63: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/63.jpg)
Concluding Thoughts
• All channels are becoming “alternative”
• Branches have dipped (in number), but mostly due to large
bank consolidation
• Online banking is reaching a maturity point in usage, but
with great opportunity to enhance functionality and user
experiences
• Mobile banking is the “New, New Thing” in Financial
Services, with tremendous potential to be materialized once
mobile payment functionality is achieved
![Page 64: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/64.jpg)
Concluding Thoughts – What’s the next channel?
• Is it here
already?
![Page 65: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/65.jpg)
Wearables
![Page 66: Here, There, Everywhere: The Rise of Omnichannel Banking€¦ · • Chris Skinner, “Financial Services Club Blog” – April 2012, “Never Mind the Channels” – “Mobile](https://reader034.fdocuments.us/reader034/viewer/2022042302/5ecd4ad6e08c7f5c76406fc6/html5/thumbnails/66.jpg)
Wearables