The Future Home Buying Experience: Designing Relevant ...€¦ · The Future Home Buying...

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Copyright EY-Seren © 2017 The Future Home Buying Experience: Designing Relevant Digital Services for Customers that Support their Financial Lives Peter Neufeld, Partner, Customer Experience and Digital EY-Seren

Transcript of The Future Home Buying Experience: Designing Relevant ...€¦ · The Future Home Buying...

Page 1: The Future Home Buying Experience: Designing Relevant ...€¦ · The Future Home Buying Experience: Designing Relevant Digital Services for Customers that Support their Financial

Copyright EY-Seren © 2017

The Future Home Buying Experience:Designing Relevant Digital Services for Customers that Support their Financial Lives

Peter Neufeld, Partner, Customer Experience and Digital

EY-Seren

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The digital opportunityWhat’s driving change in the market?

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“Silicon valley is coming. There are hundreds of start-ups with a lot of brains and money working on various alternatives to traditional banking.”

- Jamie Dimon, CEO, J.P. Morgan Chase

http://uk.businessinsider.com/jamie-dimon-shareholder-letter-and-silicon-valley-2015-4

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Sustained Low Interest Rates

MMR and Other Regulation

Escalating Housing Prices

Uneven Wealth Distribution

Fewer people will find it more difficult to save for a deposit and finance home ownership

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‘Digital’ is standing in for a dramatic global shift across industries driving radical disruption

Uber, the world’s largest taxi company, owns no vehicles.

Facebook, the world’s most popular media companies, creates no content.

Alibaba, the most valuable retailer, has no inventory.

Airbnb, the world’s largest accommodation provider, owns no real estate.

Something interesting is happening . . .

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Challenger banks are bringing new, innovative to market but may struggle with growth

200,000new customers in 18

months

£100Mcapital raise to invest in mortgages for mobile

first digital bank

100,000new users in under a year

New entrants are challenging the underlying business model, moving

beyond omnichannel to a digital and mobile only world

Simple Branchless Connected

Mobile First (Only) Intuitive Collaborative

£100Mcapital raised ahead of

launch

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FinTechs are challenging and evolving traditional business models

By creating secondary markets for data (1) , developing new marketplaces (2),

focusing on customer segments (3) or automating advice (4)

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2012

17,000 employees 13 employees

-$1.65BN $1BN

Filed bankruptcy Acquired by Facebook

AS NEW PLATFORMS FOR CONSUMER ENGAGEMENT COME TO MARKET, TRADITIONAL BRANDS ARE DISRUPTED BY NEW DIGITAL NATIVES

DIGITAL DISRUPTION IS SIGNIFICANT

17,000 employees 13 employees

-$1.65BN $1BN

Filed bankruptcy Acquired by Facebook

AS NEW PLATFORMS FOR CONSUMER ENGAGEMENT COME TO MARKET, TRADITIONAL BRANDS ARE DISRUPTED BY NEW DIGITAL

NATIVES

DIGITAL DISRUPTION IS SIGNIFICANT

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Traditional industry boundaries?

Competition is increasing from digital natives with considerable global access to customers (digital platforms at scale) and innovation capital

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The new first Platform?

It took 13 years to get 2 million customers

using Internet banking; it took just 2 months

to reach that number for mobile banking.

Customers are going for 1 online

engagement per month to averaging 3

check-ins a day on mobile banking Apps

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Digital delivers greater scale

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But are we leaving customers behind?

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Many people struggle when confronted by complex financial choices

Sources: EY-Seren Research, Gov.UK

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Confidence and trust in their

own digital abilities leads to

preference for digital, until

their needs get complex and

strategic, when they switch to

a branch.

Prefers the speed and

convenience of digital, but

still has favorable memory of

high-touch service, and will

use the branch experience

when it can enable superior

decisions.

Will leverage digital

increasingly as they are

confident in their own

capabilities, but still more

comfortable with expertise

provided in branch

experience.

For complex financial decisions people still prefer talking to other people

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Design in absence of research and testing can lead to poor outcomes from customers

‘Only 10% of people shown four lines selected more than four funds, that number quadrupled among subjects given eight lines. This means that the level of diversification was driven, in large part, by a seemingly minor website specification’

Retirement Planning Needs a Better UXShlomo Benartzi, May 01, 2015, Harvard Business Review

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Customers’ express a growing willingness to use non-banking providers for banking needs

What kind of providers would

you consider in the future?*

What kind of providers do you

use now?*

Current Account

Deposit/Savings

Credit Card

Mortgages

*% UK respondents n=5662Bank only Bank and non-bank Non-bank only

68

59

43

58

28

34

43

32

4

7

14

10

90

88

58

87

4

5

17

1

6

7

25

12

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Our research suggest customers want more from their financial lives that just transactions

13%

17%

18%

11%

13%

16%

14%

14%

15%

9%

30%

31%

29%

28%

27%

28%

28%

31%

25%

22%

25%

23%

20%

20%

19%

18%27%

31%

20%

29%

Respects your cultural or religious requirements 60%

Takes overall relationship into account when quoting fees 61%

Customizes products and servics to fit your needs 62%

Provides access to financial experts 63%

60%Recommends accounts, products and serices that you need

71%

Provides a plan to meet my financial goals

64%

Finds new ways to improve how you conduct your business

65%

Finds ways to save you money

72%

Rewards you for being a loyal customer

Invests in my financial wellbeing 73%

Add more accounts / servicesPay a little more Increase my deposits / investments

Customer Engagement Drivers In Financial Services

#1

#2

#3

#4

#5

#6

#7

#8

#9

10#

Importance Ranking

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People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions

First bank

account /

school

University/

first job

First homeStarting a family

Career

maturity

Planning for

the futureKids leaving

home

Downsizing

home

Retirement

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People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions

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People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions

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1. Embracing customer centricity

2. Digitising products & services

3. Creating new digital propositions

4. Building the future digital organisation

5. Building the future digital platform

6. Regulatory innovation

People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions

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People want to make great decisions and achieve highly personal goals. They need financial services brand to help them make better decisions

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Thank you

Peter NeufeldHead of Digital and Customer ExperienceFinancial ServicesEY-Seren@peterneufeld