Tendencias y Futuro de la Banca

Pablo Junco

Presidente de Iasa Spain

pjunco@iasaglobal.org

Industry Trends

Retail Banking Challenges

Customer Centric

• Empowered consumers - more information,

less loyalty

• Digital Customers require, simple, relevant

and enjoyable experience

Multichannel

• Omni channel - full channel choice, seamless

journey and consistency across channels

• Mobile first - Smartphones and tablets

Innovation• Ecosystems: Google, Apple, Amazon,…

• New players that disintermediate banks:

PayPal, BitCoins, …

European Central Bank’s

Regulations

Retail Banking Focus Areas

Transforming commercial model to recover profitability

Getting the right channel mix: online, mobile & branch banking

Engaging employees to increase efficiency

Making the most of data analytics to provide a personalized service for customers

Ensuring banks stay ahead of the M-payments game

Cultivating client relationships

Alignment with European Central Bank’s Regulatory

Transforming commercial model to recover profitability

Industry profitability under pressure,

specially in Europe

Need to focus on a business model

transformation that allows future profitable growth

Return on tangible equity (ROTE) Evolution

Commercial transformation with a customer centric approach

• Client’s level of satisfaction

• Transitionally engaged customer is more profitable than

a non engaged customer

• Customers with specialized management are

more satisfied and profitable: • Levels of Satisfaction: 51% vs 82%: +31pp (*)

• Gross Margin by Client: x2.6 (*)

• Offer customers specialized value propositions

according their segmentation• Affluent Select: Specialized value proposition tailored

for the segment with greater savings/investments focus.

Dedicated servicing model

• Middle Market: Value proposition with less

specialization, focused on simplicity, transparency and

multichannel drivers. Selective multichannel servicing

model based on customer profitability and/or relationship

• Mass Market: Basic offer with limited credit access or

closed preapproved packaged. Distribution and servicing

model based on self-service at any channel

(*) Source: Internal Santander Group study

Improve the processes that our customers “live”

• Quality and client satisfaction

• Effective and efficient business processes

• High added value products and services

• Client lifecycle management model

• Focus of management by segment Attention models

Focus

on the

Customer

Specialization

Customer Experience

Multichannel

• Multichannel: Adapt to Customer habits

changes

• Omnichannel experience with a high

usability and consistency across all the

channels

• Banks need to adjust their way of doing

Business. New products and campaign

launches should be designed for all

channels and the channels must be

connected

Multichannel in the Retail Banking Model

Customer

Centric

Understanding customer behaviors and

intentions based in their iterations

Real time leads generation and optimization

Segment Specialization

Management

Multichannel Product Development and

Campaign Marketing by Channel

Pricing Strategy based on Customer and/or

Channel

Multichannel Customer Experience Services, UX

and Brand ImageCommunication strategy using customer

preferences and content features

Multichannel Relationship Matrix by

Segments

Identifying Customer cluster based on their

iterations with the bank channels

Personalized Customer Relationship

Management based in 360

customer view

Multichannel:

• Sales Funnel

• Objectives and incentives

(Customers & Employees)

Customer Faced Process Improvement with multichannel view and omnichannel support

From Branch Network Management Model to a

Multichannel Management Model

Derivation of customers to most

profit bank channel based on their

profile

Multichannel Campaign Management

Data Analytics (Big Data)

Why is important Big Data for Banks?

• To understand our customers

• To look for clusters and find new opportunities

• To predict a next steps• Who we are competing with?

• What are substitutes for our services?

• Is there any complementary service?

• How sustainable our business model is?

Do banks currently have the right expertise to make effective use of Big Data?The working assumption is: “In order to effectively use of any Big Data advantages the organization itself should be mature enough on internal data management”

“There is a huge opportunity for banks that Big

Data can bring. The benefits will came only if

the banks have a strategic plan for collecting

and organizing their data in a way they are

aligned with the business strategy“

Distribution Strategy Model

Using Big Data to optimize their ATM and branches

Marketers, The potential BIG DATA user

Marketers plan to

implement a big data

solution

71%

Marketers have a single

customer view

18%

Deployment for

Marketing

45 %Successful brands use

Data to Drive Marketing

Decisions

100%

Marketers plan to use

data to drive real-time

decisioning in the next

two years

57%

By 2017 the CMO

will spend more on

IT than the CIO

Marketers want to be data-driven

Data Driven Marketing Turns

Data Into Action:

What data use marketers most?

Collecting and using data requires user touchpointsBig challenge to gain high value from data

Analytics is CORE

Digital LeadersDigital Mainstream

• DWH is based on Analytics Data

• Targeted integration of 3rd parties

• Data for Digital Marketing

• Mostly 3rd Party Digital Marketing Services

• Marketing Intelligence comes from CRM

• Majority does not have DWH for Digital Data

Digital Marketing Platform

Digital Marketing Platform (DMP)

mCommerce: Winning Formula for Banks

Mobile Money Platform

Mobile Payment Security Solution

New Belgian standard for secure Mobile payment

Merchant websites and

mobile apps

Mobile Payment Security Solution

New Belgian standard for secure Mobile payment

End Users

Merchants

App Developers

Mobile Network Operator (MNO)

Bank

M-CouponIssuer

Available for any consumers through One secure

Mobile App with just your ID

Integrable by any merchants

Open API for any App Developer

Accessible to any couponing issuers

Open to any

Mobile Network Operator

Open to any

Bank

MyOrder Cashless Payments

The Dutch order and pay app

• MyOrder is an order and pay app for all daily purchases

• Every Dutch merchant can join and enabling them to easily sell via

smartphones

• Bank independent

• Order anytime, any place

• Receive orders via: • E-mail

• Receipt printer

• Cash register

• Coupons

• Geofencing push notifications

• Check in to the store (NFC or

GPS)

• Customer recognition

• See activated coupons

• See purchase history

• Relevant approach

• NFC payments

• Coupons

• Over the air

• Retrieve at CheckPoint

• Age check

• Always without pincode

• Up to € 150.00

• Any Dutch bank

March 10, 2013 February 20, 2014

MyOrder is an example of Rabobank

future as retail bank

Customer recognition at the start of

the customer journey. The goal is to

be relevant in the full shopping

experience not just the at payment

phase

Enabling Commerce through Payments

Taking a mobile first

approach

Increasing customer

Engagement

• Better Online Product Experiences

• Lead in Mobile Payments

• Extending Credit to Customers

New, Simple products for

merchants and partners

Enabling Commerce through Payments

Reinventing PayPal

1. PayPal Classic

Web-centric

PayPal-centric

2. PayPal App

Mobile-first

PayPal-centric

3. Mobile SDK

Mobile-centric

Ecosystem-centric

Success Factors of Banks

Real time marketing based on CRM data

Digital products as sales-service process

Separate profit and loss (P&L) management

Strong collaboration with marketing and UX agencies (differentiation will came from UX)

Investment in research and Technologies

Have an agile IT