SlideShare a Scribd company logo
1 of 50
Download to read offline
Blackstone Technology Group Proprietary and Confidential
Prepared by: Prepared for:Ken Hans
Partner, Executive Director
Financial Services
2
Table of Contents
 Digital Trends
 Shifting Banking Trends
 Here Come the Millennials
 Strategies to Reach Customers-Digital Banking 1.0
 Emerging Strategies to Reach Customers-Digital Banking 2.0
 Takeaways
Blackstone Technology Group Proprietary and Confidential 3/11/2015
Blackstone Technology Group Proprietary and Confidential
Global ‘Tech’ Statistics Related to Our Everyday Life
4
3/11/2015Blackstone Technology Group Proprietary and Confidential
It is estimated that 10% of all photos in
existence on the planet were created in
last 45 days
Digital Trends
Banking & Technology
Conference, 2014
“It is estimated that every 24 hours the world produces a
greater volume of overall digital content than all paper-based
books, newspapers and magazines ever made”
Given how much digital data the world is
consuming, digital information scientists see that
the world is not far away from having to
commonly quantify data capacities in yottabytes
Value Metric
1000 kB kilobyte
10002
MB megabyte
10003
GB gigabyte
10004
TB terabyte
10005
PB petabyte
10006
EB exabyte
10007
ZB zettabyte
10008
YB yottabyte
‘Tech’ Statistics Related to MY Everyday Life
5
3/11/2015Blackstone Technology Group Proprietary and Confidential
Number of Household Internet-Connected Digital Devices
This Speaker’s Household
Dad, Age 43
Mom, Age 43
Daughter, Age 9
Son & Daughter (twins), Age 7
Son, Age 5
Mobile Devices
1.Samsung Galaxy S5 (Dad)
2.iPhone 5s (Mom)
3.iPhone 4s (Kids HMD)
4.iPhone 4 (Kids HMD)
5.iPod Touch (Kids)
6.iPod Touch (Kids)
Tablets
1.iPad Air (Dad)
2.iPad3 (Mom)
3.iPad2 (Kids HMD)
4.iPad (Kids HMD)
5.Kindle (Mom)
6.Kindle (Daughter)
Laptops
1.Dell-Windows7 (Dad)
2.Dell-Linux (Mom)
3.Dell-Linux (Kids HMD)
Media Servers
1.Dell-Linux (Dad)
2.Sony-Linux (Dad)
Notes
HMD – hand me down
- engaged in digital banking
Digital Trends
Source: AntiqueTech: The ENIAC vs. The Cell Phone, http://www.antiquetech.com/?page_id=1438
Source: Wikipedia: ENIAC (http://en.wikipedia.org/wiki/ENIAC)
Modern Phones/Devices
6
3/11/2015
VS. An ‘Old School’ Mobile Device
The First Computer
The ENIAC – The Electronic Numerical Integrator And Computer
Cost: $6,000,000
Size: 8’ H x 3’ D x 80’ L
Weight: 30 tons
Uptime: 50%
Digital Trends
Samsung SGH-A850 ‘Flip’ phone
Cost: $350 (17,000x less)
Size: 1.5”H x 0.5” D x 2.5” L (40Mx smaller)
Weight: 8 oz (120,000X lighter)
Uptime: 99.999%
Calcs per Second: 385
Calcs per Second: 390,000 (1000x)
And How about ‘Modern’ Mobile Devices?
7
3/11/2015Blackstone Technology Group Proprietary and Confidential
Five Fast Facts on Modern Smartphones
Digital Trends
Source: Gadgets Arena: 5 Mind Blowing Facts about your smartphone (http://www.gadgets-arena.com/5-mind-blowing-facts-about-your-smartphone/)
1. Off the Charts Processing Power
ENIAC => Flipphones => Smartphones
Calcs/Commands per Second 385 390,000 28,000,000,000
xFaster -- 1,000 72,000
2. By Definition, it IS a PC
3. Smartphone Market is fastest growing industry
‘A personal computer (PC) - a general-purpose computer, whose size,
capabilities and original sale price makes it useful for individuals, and
is intended to be operated directly by an end-user with no intervening
computer operator’.
1975 to 2008: 1 billion computers were sold (desktops, laptops and servers)
2013: 1 billion+ smartphones were sold
Around 80% of the world’s total population now has a smartphone
And How about ‘Modern’ Mobile Devices?
8
3/11/2015Blackstone Technology Group Proprietary and Confidential
Five Fast Facts on Modern Smartphones
Digital Trends
4. NASA will use smartphones as ‘cheap satellites’
5. Devices that Smartphones now replace
PhoneSat takes advantage of commercial products already imbued with:
1) speedy computing chips
2) lots of memory
3) ultra-tiny sensors like high-resolution cameras and navigation devices
“That’s a mix of attributes akin to what spacecraft require. [And] those are
already built into a smart phone.”
1) Phones
2) Flashlights
3) Compasses
4) Cameras
5) Voice recorders
6) Calculators
7) Watches
8) Alarm clocks
9) Gaming Systems
10) Maps & GPS Systems
Smartphone satellite prototype
Source: Gadgets Arena: 5 Mind Blowing Facts about your smartphone (http://www.gadgets-arena.com/5-mind-blowing-facts-about-your-smartphone/)
Are Digital Companies Cashing In?
9
3/11/2015Blackstone Technology Group Proprietary and Confidential
Digital Companies Worth
Digital Trends
Time Magazine Recently Reported
Three US tech companies are
now each officially worth
more than Russia’s entire stock
market:
Digital Companies are in the green
Source: Google joins an elite list of companies, including Exxon Mobile, Microsoft and Apple, Time, Dec 18th, 2014, http://time.com/3639596/google-russian-stock-market/
Apple (AAPL),
$654.63
Microsoft
(MSFT),
$388.82
Exxon Mobil
(XOM),
$377.72
Berkshire
Hathaway
(BRK-A),
$359.68
Google
(GOOG),
$358.41
Russia, $325.00
$0.00
$100.00
$200.00
$300.00
$400.00
$500.00
$600.00
$700.00
Stock Value
Stock Value (in billions) as of
Dec 18th, 2014
Blackstone Technology Group Proprietary and Confidential
Technology Innovation Has Spawned Financial Innovation
Banking 30 Years
Ago
1985
Online Banking
1992
Early Mobile
Banking
1997
Invention of Smart
Phone and Tablet
2007-2010
The pace of technical financial innovation within the last 5 years
has moved faster than the last 30
Banking Today
Today
11
3/11/2015Blackstone Technology Group Proprietary and Confidential
2007
2010
Banking Trends
Where are Customers Interacting with Us
12
3/11/2015Blackstone Technology Group Proprietary and Confidential
‘Bricks and Mortar’ VS. ‘Clicks and Twitter’
Some Branch Stats
“~12% of all bank transactions being conducted face-to-face.”
-Great Lakes Area Community Bank
“~80% of day-to-day banking transactions being conducted digitally.”
-Top 10 US Bank
“We’ve seen a ~60% reduction in branch traffic over last 10 years.”
-Top 10 US Bank
Why Branch Slowdown?
Banking Trends
Reported US Branch Openings/Closings, Q1 20141
1 - Source: Grand Openings: The State of Marketing New Branches, ,Media Logic, Dec 3, 2014, http://www.medialogic.com/financial-services/blog/grand-openings-state-marketing-new-branches/
“People effectively carry a branch in their pocket.”
-Brian Moynihan, CEO, Bank of America
Our Digitally-Connected Bank Customers are Moving
Towards the Path of Least Resistance
Where are Customers Interacting with Us
13
3/11/2015Blackstone Technology Group Proprietary and Confidential
‘Bricks and Mortar’ VS. ‘Clicks and Twitter’
We’re no Longer Able to Readily Promote, Observe, and Interact with Customers in Traditional Branch Setting
Banking Trends
Why?
Digital Channel has given customers the most expedient path to
conduct financial transactions (i.e., Path of Least Resistance)
My Own Experience…
Is this Bad?
While banks can debate this, interactions by today’s
bank customer through the digital channel are:
 Easier for Customers (Higher Satisfaction)
 Cheaper for Bank (Lower Cost of Service)
1 - Source: Will Becoming Smaller Pay Off For Bank of America and JPMorgan Chase & Co?, Motley Fool,
http://www.fool.com/investing/general/2014/07/10/will-becoming-smaller-pay-off-for-bank-of-america.aspx
$4.25
$1.25
$0.10
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50
Branch-Teller-Assisted Check Deposit
Branch-ATM Check Deposit
Digital-Mobile Check Deposit
Average Bank Processing Cost for a Check
Deposit
14
3/11/2015Blackstone Technology Group Proprietary and Confidential
‘Bricks and Mortar’ VS. ‘Clicks and Twitter’
The New Rules of the Road to Reach Customers
Banking Trends
Where are Customers Interacting with Us
START
CONTINUE
COMPLETE
Where are Customers Interacting with Us
15
3/11/2015Blackstone Technology Group Proprietary and Confidential
‘Bricks and Mortar’ VS. ‘Clicks and Twitter’
98% of people move across digital channel
devices (mobile phone, tablet, online) within
same day to accomplish specific tasks
- Backbase
Banking Trends
Customers Want to Interact Easily with their
Bank Across Their Devices
Goal: Reduce Friction, and Make Process
Seamless
16
3/11/2015Blackstone Technology Group Proprietary and Confidential
Banking Trends
Where are Customers Interacting with Us
‘Bricks and Mortar’ VS. ‘Clicks and Twitter’
53% of respondents said they use their
current banks’ mobile app at least weekly,
and more than 88% of these frequent mobile
banking app users also indicated that they
log into their bank’s online banking website
at least weekly.
- The Financial Brand
Banking Customers are traversing
online and mobile frequently
Goal: Cater to Each Digital Banking
Channel, while Striving for
Consistency of User Experience
1 - Mobile vs. Online Banking: It’s Not Either/Or, Consumers Want Both, The Financial Brand, August 12, 2014, http://thefinancialbrand.com/41560/mobile-online-banking-usage/
Device Market Penetration: The ‘Big 2’
17
3/11/2015Blackstone Technology Group Proprietary and Confidential
iOS and Android currently own 90%+ of consumer penetration in the mobile
and tablet marketplaces, respectively.
Statistics which support this:
Mobile Devices
iOS and Android OS combined for close to 94% of mobile device market share through 2014.
Tablets
iOS and Android combined for 98% of tablet market share in 2012, and these two operation systems are
forecasted to hold 90%+ market share of the tablet market through 2017.
Source1: http://www.comscore.com/Insights/Market-Rankings/comScore-Reports-July-2014-US-Smartphone-Subscriber-Market-Share
Source 2: http://tabtimes.com/resources/the-state-of-the-tablet-market, section: ‘OS market share in tablet unit sales’
Banking Trends
This device market data shows why mobile banking vendors are
catering to iOS and Android virtually exclusively at this stage
Are Banks Believing the Digital ‘Hype’?
18
3/11/2015Blackstone Technology Group Proprietary and Confidential
Banking Trends
“BBVA will be a software company in the future”
Francisco Gonzalez, Bank Chairman
% of BBVA Bank Employees Focused on Digital Banking
2015 2020 (Estimated)
3% 50%
The New Competitor Landscape (in addition to
traditional banks) from BBVA’s perspective:
Source: Mobile Turning BBVA’s Future Into a Software Company, pymnts.com, March 6th, 2015, http://www.pymnts.com/news/2015/mobile-turning-bbvas-future-into-software-company/
Are Banks Believing the Digital ‘Hype’?
19
3/11/2015Blackstone Technology Group Proprietary and Confidential
Banking Trends
Top 2015 Priorities for Bank CIOs1
1. Mobile Banking
2. On-Line Banking
…
1 - Source: How Banks Are Allocating Their Tech Budgets for 2015, America Banker, Dec 8, 2014, http://www.americanbanker.com/news/bank-technology/how-banks-are-allocating-their-tech-budgets-for-
2015-1071546-1.html
2 – Source: Top 10 Community Bank IT Projects, American Banker, http://www.americanbanker.com/gallery/top-10-community-bank-it-projects-1072933-1.html
Select Top Community IT Projects2
1. Real-Time Electronic Payments - CBW Bank
2. Mobile App Integration with Their ATMs – Wintrust Financial
3. Overhauled mobile and online platforms – Radius Bank
4. Expanded Mobile App Offering to Small Business Loans – C1
Financial
…
A Large Midwest Bank’s Lesson…
Blackstone Technology Group Proprietary and Confidential
The Millennials
Customer Demographic Trends
21
3/11/2015Blackstone Technology Group Proprietary and Confidential
Source: ‘This year Millennials will overtake Baby Boomers’, January 16th, 2015 (http://www.pewresearch.org/fact-tank/2015/01/16/this-year-Millennials-will-overtake-baby-boomers/)
This year, the “Millennial” generation is projected to
surpass the outsized Baby Boom generation as the
nation’s largest living generation
By 2015 Millennials will increase in size to 75.3 million and become the biggest group [for
the better part of this century]
The Millennials
So Who are the Millennials
22
3/11/2015Blackstone Technology Group Proprietary and Confidential
Sources:
1. Top 7 Things Millennials Demand from Brands, Immersive, Feb 19th, 2015, (http://www.immersiveyouthmarketing.com/blog/top-7-things-Millennials-demand-from-brands)
2. Millennial Marketing: New Age of Hospitality Consumers, Richfield Hospitality, Aug 14th, 2014, http://www.richfield.com/blog/?p=339
3. Hiring Millenials-How This Generation can impact your team, SmartTalent, Aug 15th, 2014, http://www.smarttalent.net/tag/tips-for-hiring-Millennials/
4. Millennials Use Mobile Devices More Than Previous Generations, ScreenMedia Daily, Apr 4, 2013, http://screenmediadaily.com/Millennials-use-mobile-devices-more-than-previous-generations/
Caucasian
60%
Hispanic
20%
Black
14%
Asian
5%
Other
1%
Ages 18-34
(DOB 1981-1997)
Top 5 Things Making Them
Unique
1. Technology Use
2. Intelligence
3. Music & Pop Culture
4. Libertarianism & Tolerance
5. Clothes & Fashion
Also Known As
“The Net Generation”
Beginning to enter their
earning and spending
years
Leverage mobile devices
more than most others…
The Millennials
How Different Are Millennials than Previous
Generations?
23
3/11/2015Blackstone Technology Group Proprietary and Confidential
Gen X Concerts Millennial ConcertsVS
The Millennials
How Different Our Millennials than Previous
Generations?
24
3/11/2015Blackstone Technology Group Proprietary and Confidential
VS
Gen X Brand Exposure
The Millennials
How Different Our Millennials than Previous
Generations?
25
3/11/2015Blackstone Technology Group Proprietary and Confidential
Millennial Brand ExposureVS
The Millennials
How Similar Our Millennials than Previous Generations?
26
3/11/2015Blackstone Technology Group Proprietary and Confidential
Source: Millennial Marketing: New Age of Hospitality Consumers, Richfield Hospitality, Aug 14th, 2014, http://www.richfield.com/blog/?p=339
Millennials Say Some of the Most Important Things in Their Lives will be:
Important to Them
Being a Good Parent
Owning a Home
Having a High-Paying Career
Relationship Opportunity for Banks
Credit/Loan Products to Support
Family Life
Mortgage, HELOCs
Additional Loans/Credit to Fund
Lifestyle
Blackstone Technology Group Proprietary and Confidential
Blackstone Technology Group Proprietary and Confidential
28
3/11/2015
Reaching Customers - Digital Banking 1.0
Reaching Customers with Live and Fresh Information
Live ‘Channels’ within Your Digital Apps
Samples
Live Product & Rate Feeds
News Feeds
Dynamically Controlled Bank Controlled Marketing Ads
Interweaving Messaging and Customer Touch-
points in and Around Banking Functionality
You Bank Rates - Charlottesville
Blackstone Technology Group Proprietary and Confidential
29
Celebrating The Product and Services You Deploy to Customers
Reaching Customers - Digital Banking 1.0
Forever the Mindset: “What’s In it
For Them”
Samples (In and Around Launch)
HTML Emails
Prominent Website Shingle (in and
around feature launch)
Updates to LinkedIn and Facebook
Don’t keep a secret the
services you’ve worked hard to
deploy to your digital channel
Blackstone Technology Group Proprietary and Confidential
30
3/11/2015
Reaching Customers - Digital Banking 1.0
Ratings and Comments Providing Insight Into What Customers Want
App Stores Driving Banking Digital Roadmaps
Meaningful Customer Input
Real-time feedback mechanism from digital
channel
What is working / what is not (performance,
features)
What other services desired
App Store Feedback is driving input into digital roadmaps
Samples: “Where’s my loan?”//“Where’s my tablet app?”// “I wish I could manage my cards…”
Source: ‘CMO of the Week: Michael Lacorazza, of Wells Fargo, on Staying Customer-Centric’, Social Media Today, Feb 26, 2015, http://www.socialmediatoday.com/special-columns/2015-02-26/cmo-week-
michael-lacorazza-wells-fargo-staying-customer-centric?utm_content=12561656&utm_medium=social&utm_source=twitter
Source: ‘7 Social Media Trends for Consumers: New Research’, Social Media Examiner, January 16, 2013, http://www.socialmediaexaminer.com/7-social-media-trends-for-consumers-new-research/
Listening to Social Media
31
3/11/2015Blackstone Technology Group Proprietary and Confidential
Reaching Customers - Digital Banking 1.0
Meaningful Customer Insight
More and more consumers prefer to address issues via social
channels vs. calling a contact center
Banks are both tuning in and responding to customers issues /
complaints / wants, in real time
As well, consumers are using social media to listen and learn more
about brands, products, and services they are shopping for
Banks Incorporating ‘Social Care’ as Part of
Customer Care Experience
“Our customers live digital, mobile and social lives. We are continuously
investing in social infrastructure to enable us to serve our customers and
connect with them where they are.”
Michael Lacorazza, CMO, Wells Fargo
Alerts
32
3/11/2015Blackstone Technology Group Proprietary and Confidential
Reaching Customers - Digital Banking 1.0
Keep ‘Talking’ to Your Customers
Banking alerts help to increase customer engagement
levels
As well, they are helping banks convey to customers:
-Protection: We are watching your money and
keeping it safe
Source: ‘Stay in Touch with your Money’, Brochure on Text Alerts, http://www.comerica.com/personal-
finance/Documents/Mobile_Alerts_Handout.pdf
Source: ‘Text Message Marketing Statistics”, Tatango, April 10, 2013, http://www.tatango.com/blog/sms-open-rates-exceed-99/
-Convenience: We will let you know about specific money transactions
that you specify
-Financial Responsibility: We will help you proactively better manage
your money
Sample Alerts
Convenience
Low Balance
Overdraft
Savings Goal
Statement Available
Transaction Monitoring
Large Withdrawal
Large ATM
Large Debit Transaction
Identity Protection
Username changes
Password changed
Account locked
Account unlocked
Suspicious Activity
Card Not Present
Foreign Country Transaction
Pay At the Pump
Understanding Behavior – Digital Enrollment & Activity
33
3/11/2015Blackstone Technology Group Proprietary and Confidential
Reaching Customers - Digital Banking 1.0
Digital Chanel Adoption Trend Line
79,421
<-- Your Bank
Evaluating Tangible Activity
Check Balance,
1,771,624 , 43%
View Transaction
History, 1,362,343
, 33%
View
Payees/Make
payments,
465,210 , 11%
Configure Alerts,
318,242 , 8%
Make a Transfer,
114,322 , 3%
Find a Location,
78,522 , 2%
Digital Banking Activity
Baseline of transactions users are
conducting
‘1.0’ version of reporting on
mobile/tablet:
-Enrollment
-Server Side Committed Transactions
Gaps
Lack of continuity in reporting across online and
mobile
Lack of Non-committed activity (RDC
abandonment, use of financial tools/calculators)
Blackstone Technology Group Proprietary and Confidential
FIs are Beginning to Define a ‘Digital 2.0’ Strategy
Blackstone Technology Group Proprietary and Confidential
35
How do we now differentiate beyond the ‘me too’ to
create a ‘Digital 2.0’ experience?
Integrated online and mobile banking is in its relative infancy, and
more and more customers are interchanging throughout each as their
preferred channels of bank interaction
How do we create more stickiness and brand loyalty via
digital?
It’s important to build on a platform that can provide flexibility for
future updates
How do we monetize the digital channel?
The future of digital banking is heading towards more advanced
trends such as enriched user experience, personalized marketing &
customer service, enhanced security, voice recognition and near field
communication
There is a growing trend in FIs
looking for ways to monetize the
digital channel
Questions we see FIs (Banks, CUs, Credit Card Cos) looking to solve for, now that they
have a ‘Digital 1.0’ mobile and online presence in place:
Reaching Customers - Digital Banking 2.0
3/11/2015
36
3/11/2015Blackstone Technology Group Proprietary and Confidential
Software Architecture Maturity and Responsive Design Approaches Are
Making These Unified Digital Banking Platforms A Reality
Emerging Strategies – Digital Banking 2.0
Convergence of Mobile and Online Banking Solutions
Creating Consistency in the Cross-Device User Experience
Benefits
One Platform to Deploy Ads Across the Digital
Channel
Integrated Activity/Response Reporting Across the
Digital Channel
Faster Time to Deploy Products and Services Across
the Digital Channel
37
3/11/2015Blackstone Technology Group Proprietary and Confidential
Mint.com For Your Bank
Platforms are Enabling Banks to Help Their Customer Consolidate their
Finances and Provide Financial Planning Tools
Benefits
Creates More Stickiness to Your Bank Site By Enabling
Them to Come to ‘One Site’ to Manage Their
Finances
Arm Your Customers with Tools to Help them Be
More Fiscally Responsible
Ability to Create Personal Cross-Sell Marketing
Campaigns Based on What Other Products They
Have (Win-Win)
Sample Financial Planning Tool
Emerging Strategies – Digital Banking 2.0
38
3/11/2015Blackstone Technology Group Proprietary and Confidential
Making More Judicious Use of the Tablet
No longer just ‘An iPhone App running in an iPad’
Benefits
Take Advantage of the Larger Screen Real
Estate and Computing Power
Provide More Account Details, More
Product and Offer Information
Leverage As Tool to Create Account
Opening Workflows with Ease of Form
Completion and OnBoard Camera
(Patriot Act Compliance) Sample iPad Tablet Banking App
Emerging Strategies – Digital Banking 2.0
39
Catering to the Mobile Smartphone vs. the Tablet, based on their respective orientations, continue to
reveal more distinct use cases as the use of tablet devices continues to further proliferate in the
marketplace. This presents opportunities for digital marketers to take advantage of the lean back
orientation of tablet users to be able to promote product and services that would likely not be as highly
considered in the ‘lean forward’ orientation of a mobile smart phone user.
‘Lean Back’ Tablet Characteristics ‘Lean Forward’ Smart Phone Characteristics
◊ More Time ◊ Less Time
◊ Stationary Utilization ◊ On-The-Go Utilization
◊ Exploration Oriented ◊ Action Oriented
◊ Higher UX ◊ Lower UX
Making More Judicious Use of the Tablet
Emerging Strategies – Digital Banking 2.0
How to Better Serve and Originate Customers
40
3/11/2015Blackstone Technology Group Proprietary and Confidential
The [digital device] camera, geolocation services, and mobile
operator subscriber databases are all being leveraged to
improve banking services…”1
Potential Uses:
1 - Oct 30th, 2014 Article
Device Camera
-Take Picture of your Bill to Auto Setup as
biller
-Take Picture of ID and Utility Bill for New
Customer Account Opening
Geolocation
-Correlating customer location with
transaction activity to detect potential fraud
-’Geofencing’ to identify/pre-serve a customer
before they walk in the door of the branch
With more digital device capabilities comes more opportunity for
innovative ways to serve customers better
Emerging Strategies – Digital Banking 2.0
Blackstone Technology Group Proprietary and Confidential
41
Step 1
Tap the
new voice
login
button
Step 2
Speak your
Voice
passphrase
Step 3
Bank
using voice
comands
A
C
C
E
S
S
Future - Voice-Enabled Mobile Banking
3/11/2015
Emerging Strategies – Digital Banking 2.0
Prototyped voice banking concept on Monitise mobile platform
Beyond Listening
Becoming part of the conversation
Leading with ‘What’s In it for them’, then tie it to a
relevant product or services that could help
Staying relevant and having presence where customers
and/or future customers congregate more and more
42
3/11/2015
Social Media – Contributing to Stay Relevant
Emerging Strategies – Digital Banking 2.0
Some banks are adopting a posture towards social media
contribution of “don’t ‘sell’, just ‘connect’”
Expanding Insight and Tracking across entire digital channel
Capture page Flows across all digital channels (mobile, online, loan origination, etc)
Not Just Transactions, but View Page Flow Activity by user, channel, device, region, etc.
Trend across time as data accumulates
43
3/11/2015
Digital Insight – Measuring More Comprehensive Activity
Emerging Strategies – Digital Banking 2.0
Sample New Digital Intelligence
Insight Targeted Action
44
3/11/2015
Digital Insight – Better Targeting
Location based: High mobile banking use in a specific
county business park
Target mobile small business
banking banner ads in this
geography
Behavior based: Spike in use of used car loan financial
calculator
Target mobile auto loan
banner ads in mobile channel
Location/Behavior based: High number of ATM searches
on a specific zipcode in a specific county
Add an ATM in the highly
requested geography
Target mobile ATM ads in this
geography
Emerging Strategies – Digital Banking 2.0
Uncover Missed Opportunities
 Ad Placement issues (High Page usage, No Ads)
 Ad Creative issues
 High Time Spent, Low Click
 Low Click, High Apply
 Product issues (High Click, Low Apply)
 Process issues (High Click, High Apply Begin, Low Apply End)
 Strategy issues (High Channel Spend, Low ROI)
 Target User issues (Low Click, Apply and Conversion)
Discover New Potential
 Trends in channel usage and conversion across time
 High conversion on ad resulting in multiple product sales
45
3/11/2015
Digital Insight – Better Feedback Mechanisms
Emerging Strategies – Digital Banking 2.0
46
3/11/2015
Digital Insight – Better Targeting
Emerging Strategies – Digital Banking 2.0
‘Data is the New Oil in the Digital Economy’
“Data is an immensely, untapped valuable
asset”
“Data infrastructure should become a profit
center”
“Good data beats opinion”
Source: ‘DATA IS THE NEW OIL OF THE DIGITAL ECONOMY’, Wired, http://www.wired.com/2014/07/data-new-oil-digital-economy/
Blackstone Technology Group Proprietary and Confidential
48
Takeaways
 The digital age is here to stay, embrace it to stay competitive
 Shifting consumer demographics show us that today’s (and future)
customers expect and demand to interact with us via digital channel,
so stay tuned to social and digital mediums
 Continued features and updates to digital channel show banks
‘interest’ and dedication in serving customers
 Consider emerging platforms that combine mobile and digital into one
platform, that provides better customer experience, ability for
personalized marketing, and lower TCO
 Data is the new oil in the digital age, the more you track the more
you’ll learn and be able to better market to and serve your customers
Blackstone Technology Group Proprietary and Confidential 3/11/2015
Blackstone Technology Group Proprietary and Confidential
Prepared by: Prepared for:Ken Hans
Partner, Executive Director
Financial Services
Blackstone Technology Group Proprietary and Confidential

More Related Content

What's hot

Experience-Led Digital Banking: Getting Customers to Buy with Low Cost Digita...
Experience-Led Digital Banking: Getting Customers to Buy with Low Cost Digita...Experience-Led Digital Banking: Getting Customers to Buy with Low Cost Digita...
Experience-Led Digital Banking: Getting Customers to Buy with Low Cost Digita...Capgemini
 
Disruption in Digital Banking
Disruption in Digital BankingDisruption in Digital Banking
Disruption in Digital BankingBackbase
 
The future of banking
The future of bankingThe future of banking
The future of bankingBarbara Biro
 
Creating a Digital Banking Strategy - 01.23.15
Creating a Digital Banking Strategy - 01.23.15Creating a Digital Banking Strategy - 01.23.15
Creating a Digital Banking Strategy - 01.23.15Calvin Turner
 
1-to-1 Banking in a Digital World
1-to-1 Banking in a Digital World1-to-1 Banking in a Digital World
1-to-1 Banking in a Digital WorldAlison Berman
 
Digital Banking - Industry Trends for Customer Service
Digital Banking - Industry Trends for Customer ServiceDigital Banking - Industry Trends for Customer Service
Digital Banking - Industry Trends for Customer ServiceGianluca Ferranti
 
Innovation in bank payment systems and related services among selected commer...
Innovation in bank payment systems and related services among selected commer...Innovation in bank payment systems and related services among selected commer...
Innovation in bank payment systems and related services among selected commer...Alexander Decker
 
FinQLOUD platform for digital banking
FinQLOUD platform for digital bankingFinQLOUD platform for digital banking
FinQLOUD platform for digital bankingMaxim Orlovsky
 
MY DIGITAL BANKING NIRVANA - JIM MAROUS
MY DIGITAL BANKING NIRVANA - JIM MAROUSMY DIGITAL BANKING NIRVANA - JIM MAROUS
MY DIGITAL BANKING NIRVANA - JIM MAROUSJim Marous
 
2015 Banking Trends
2015 Banking Trends2015 Banking Trends
2015 Banking TrendsMX
 
Great Banking Experience by Service Design - Banks vs. FinTechs
Great Banking Experience by Service Design - Banks vs. FinTechsGreat Banking Experience by Service Design - Banks vs. FinTechs
Great Banking Experience by Service Design - Banks vs. FinTechsChristian Graf
 
Digital Innovation: A Look Of Tomorrow
Digital Innovation: A Look Of TomorrowDigital Innovation: A Look Of Tomorrow
Digital Innovation: A Look Of TomorrowRaja Teh Maimunah
 
Case study: Building Online Banking User Experience
Case study: Building Online Banking User ExperienceCase study: Building Online Banking User Experience
Case study: Building Online Banking User ExperienceLiga Letina
 
Auto Digital Transformation CBA Live 2016
Auto Digital Transformation CBA Live 2016Auto Digital Transformation CBA Live 2016
Auto Digital Transformation CBA Live 2016Kristin Herring
 
Designing the future bank for the digital era
Designing the future bank for the digital eraDesigning the future bank for the digital era
Designing the future bank for the digital eraPol Navarro
 
Digital Innovation in Financial Services
Digital Innovation in Financial ServicesDigital Innovation in Financial Services
Digital Innovation in Financial ServicesNick Baker
 
Banking on innovation by Raja Teh Maimunah
Banking on innovation by Raja Teh MaimunahBanking on innovation by Raja Teh Maimunah
Banking on innovation by Raja Teh MaimunahJoe Najib
 
SAP - Omni Channel Banking
SAP - Omni Channel BankingSAP - Omni Channel Banking
SAP - Omni Channel BankingThorsten Georgi
 
"Smart Banking- Real Time Driven at Number26", Christian Rebernik, CTO at Num...
"Smart Banking- Real Time Driven at Number26", Christian Rebernik, CTO at Num..."Smart Banking- Real Time Driven at Number26", Christian Rebernik, CTO at Num...
"Smart Banking- Real Time Driven at Number26", Christian Rebernik, CTO at Num...Dataconomy Media
 

What's hot (19)

Experience-Led Digital Banking: Getting Customers to Buy with Low Cost Digita...
Experience-Led Digital Banking: Getting Customers to Buy with Low Cost Digita...Experience-Led Digital Banking: Getting Customers to Buy with Low Cost Digita...
Experience-Led Digital Banking: Getting Customers to Buy with Low Cost Digita...
 
Disruption in Digital Banking
Disruption in Digital BankingDisruption in Digital Banking
Disruption in Digital Banking
 
The future of banking
The future of bankingThe future of banking
The future of banking
 
Creating a Digital Banking Strategy - 01.23.15
Creating a Digital Banking Strategy - 01.23.15Creating a Digital Banking Strategy - 01.23.15
Creating a Digital Banking Strategy - 01.23.15
 
1-to-1 Banking in a Digital World
1-to-1 Banking in a Digital World1-to-1 Banking in a Digital World
1-to-1 Banking in a Digital World
 
Digital Banking - Industry Trends for Customer Service
Digital Banking - Industry Trends for Customer ServiceDigital Banking - Industry Trends for Customer Service
Digital Banking - Industry Trends for Customer Service
 
Innovation in bank payment systems and related services among selected commer...
Innovation in bank payment systems and related services among selected commer...Innovation in bank payment systems and related services among selected commer...
Innovation in bank payment systems and related services among selected commer...
 
FinQLOUD platform for digital banking
FinQLOUD platform for digital bankingFinQLOUD platform for digital banking
FinQLOUD platform for digital banking
 
MY DIGITAL BANKING NIRVANA - JIM MAROUS
MY DIGITAL BANKING NIRVANA - JIM MAROUSMY DIGITAL BANKING NIRVANA - JIM MAROUS
MY DIGITAL BANKING NIRVANA - JIM MAROUS
 
2015 Banking Trends
2015 Banking Trends2015 Banking Trends
2015 Banking Trends
 
Great Banking Experience by Service Design - Banks vs. FinTechs
Great Banking Experience by Service Design - Banks vs. FinTechsGreat Banking Experience by Service Design - Banks vs. FinTechs
Great Banking Experience by Service Design - Banks vs. FinTechs
 
Digital Innovation: A Look Of Tomorrow
Digital Innovation: A Look Of TomorrowDigital Innovation: A Look Of Tomorrow
Digital Innovation: A Look Of Tomorrow
 
Case study: Building Online Banking User Experience
Case study: Building Online Banking User ExperienceCase study: Building Online Banking User Experience
Case study: Building Online Banking User Experience
 
Auto Digital Transformation CBA Live 2016
Auto Digital Transformation CBA Live 2016Auto Digital Transformation CBA Live 2016
Auto Digital Transformation CBA Live 2016
 
Designing the future bank for the digital era
Designing the future bank for the digital eraDesigning the future bank for the digital era
Designing the future bank for the digital era
 
Digital Innovation in Financial Services
Digital Innovation in Financial ServicesDigital Innovation in Financial Services
Digital Innovation in Financial Services
 
Banking on innovation by Raja Teh Maimunah
Banking on innovation by Raja Teh MaimunahBanking on innovation by Raja Teh Maimunah
Banking on innovation by Raja Teh Maimunah
 
SAP - Omni Channel Banking
SAP - Omni Channel BankingSAP - Omni Channel Banking
SAP - Omni Channel Banking
 
"Smart Banking- Real Time Driven at Number26", Christian Rebernik, CTO at Num...
"Smart Banking- Real Time Driven at Number26", Christian Rebernik, CTO at Num..."Smart Banking- Real Time Driven at Number26", Christian Rebernik, CTO at Num...
"Smart Banking- Real Time Driven at Number26", Christian Rebernik, CTO at Num...
 

Viewers also liked

Edital progep 2016_015
Edital progep 2016_015Edital progep 2016_015
Edital progep 2016_015Miriam Neres
 
Mindfulness
MindfulnessMindfulness
MindfulnessHDOº
 
Pechakucha HDOº 2016
Pechakucha HDOº 2016Pechakucha HDOº 2016
Pechakucha HDOº 2016HDOº
 
BSL Fintech special / english-french
BSL Fintech special / english-frenchBSL Fintech special / english-french
BSL Fintech special / english-frenchLucile Mathe
 
دورة الإعلام الجديد ليوم
دورة الإعلام الجديد ليومدورة الإعلام الجديد ليوم
دورة الإعلام الجديد ليومRami Skaik
 
Producción y aplicaciones de enzimas obtenidas a partir de Trichoderma sp.
Producción y aplicaciones de enzimas obtenidas a partir de  Trichoderma  sp.Producción y aplicaciones de enzimas obtenidas a partir de  Trichoderma  sp.
Producción y aplicaciones de enzimas obtenidas a partir de Trichoderma sp.Marco Acuña
 
«Развитие творческих способностей детей дошкольного возраста с использование...
«Развитие творческих способностей детей дошкольного возраста с использование...«Развитие творческих способностей детей дошкольного возраста с использование...
«Развитие творческих способностей детей дошкольного возраста с использование...ruster_c
 
«Познавательное развитие детей 3-4 лет»
«Познавательное развитие детей 3-4 лет»«Познавательное развитие детей 3-4 лет»
«Познавательное развитие детей 3-4 лет»ruster_c
 
Medios de cultivo caseros
Medios de cultivo caserosMedios de cultivo caseros
Medios de cultivo caserosMarco Acuña
 
雲端學校訂餐系統
雲端學校訂餐系統雲端學校訂餐系統
雲端學校訂餐系統佳陵 林
 

Viewers also liked (11)

Edital progep 2016_015
Edital progep 2016_015Edital progep 2016_015
Edital progep 2016_015
 
Mindfulness
MindfulnessMindfulness
Mindfulness
 
Pechakucha HDOº 2016
Pechakucha HDOº 2016Pechakucha HDOº 2016
Pechakucha HDOº 2016
 
BSL Fintech special / english-french
BSL Fintech special / english-frenchBSL Fintech special / english-french
BSL Fintech special / english-french
 
دورة الإعلام الجديد ليوم
دورة الإعلام الجديد ليومدورة الإعلام الجديد ليوم
دورة الإعلام الجديد ليوم
 
Producción y aplicaciones de enzimas obtenidas a partir de Trichoderma sp.
Producción y aplicaciones de enzimas obtenidas a partir de  Trichoderma  sp.Producción y aplicaciones de enzimas obtenidas a partir de  Trichoderma  sp.
Producción y aplicaciones de enzimas obtenidas a partir de Trichoderma sp.
 
«Развитие творческих способностей детей дошкольного возраста с использование...
«Развитие творческих способностей детей дошкольного возраста с использование...«Развитие творческих способностей детей дошкольного возраста с использование...
«Развитие творческих способностей детей дошкольного возраста с использование...
 
«Познавательное развитие детей 3-4 лет»
«Познавательное развитие детей 3-4 лет»«Познавательное развитие детей 3-4 лет»
«Познавательное развитие детей 3-4 лет»
 
Medios de cultivo caseros
Medios de cultivo caserosMedios de cultivo caseros
Medios de cultivo caseros
 
雲端學校訂餐系統
雲端學校訂餐系統雲端學校訂餐系統
雲端學校訂餐系統
 
Anato higado
Anato higadoAnato higado
Anato higado
 

Similar to Digital In Banking - Summary Trends - Virginia Bankers Association - March 2015

Mobile Wars: Fintech vs. Banks... and Big Tech in Ambush
Mobile Wars: Fintech vs. Banks... and Big Tech in AmbushMobile Wars: Fintech vs. Banks... and Big Tech in Ambush
Mobile Wars: Fintech vs. Banks... and Big Tech in AmbushKatia Bazzocchi
 
The Evolving Realities of Digital Marketing:
The Evolving Realities of Digital Marketing: The Evolving Realities of Digital Marketing:
The Evolving Realities of Digital Marketing: RENGAN SRINIVASAN
 
Eric van Tol - Businesscases & Verdienmodellen
Eric van Tol - Businesscases & VerdienmodellenEric van Tol - Businesscases & Verdienmodellen
Eric van Tol - Businesscases & VerdienmodellenMedia Perspectives
 
Big Data in Banking (White paper)
Big Data in Banking (White paper)Big Data in Banking (White paper)
Big Data in Banking (White paper)InData Labs
 
Emerging Technology, Shiny Objects & The Future of Media - iSummit - Fred Steube
Emerging Technology, Shiny Objects & The Future of Media - iSummit - Fred SteubeEmerging Technology, Shiny Objects & The Future of Media - iSummit - Fred Steube
Emerging Technology, Shiny Objects & The Future of Media - iSummit - Fred SteubeFred Steube
 
1. FINTECH Course NMIMS - CONTEXT (Guest Lecture by NIRAJ VAIDYA)
1. FINTECH Course NMIMS - CONTEXT (Guest Lecture by NIRAJ VAIDYA)1. FINTECH Course NMIMS - CONTEXT (Guest Lecture by NIRAJ VAIDYA)
1. FINTECH Course NMIMS - CONTEXT (Guest Lecture by NIRAJ VAIDYA)Niraj Vaidya
 
Maximising Online Resource Effectiveness Workshop Session 1/8 Introduction
Maximising Online Resource Effectiveness Workshop Session 1/8 IntroductionMaximising Online Resource Effectiveness Workshop Session 1/8 Introduction
Maximising Online Resource Effectiveness Workshop Session 1/8 IntroductionPlatypus
 
Maximising Online Resource Effectiveness: Workshop Introduction
Maximising Online Resource Effectiveness: Workshop IntroductionMaximising Online Resource Effectiveness: Workshop Introduction
Maximising Online Resource Effectiveness: Workshop IntroductionJISC Netskills
 
Ps113 transactis-june2010
Ps113 transactis-june2010Ps113 transactis-june2010
Ps113 transactis-june2010Ian Jindal
 
Getting Going with Mobile (What Your Users Really Want!)
Getting Going with Mobile (What Your Users Really Want!)Getting Going with Mobile (What Your Users Really Want!)
Getting Going with Mobile (What Your Users Really Want!)Forum One
 
Mobile Banking Trends
Mobile Banking TrendsMobile Banking Trends
Mobile Banking TrendsZSL Mobile
 
South By South Best 2018
South By South Best 2018 South By South Best 2018
South By South Best 2018 James Quinlan
 
Six Fintech Trends of Foremost Importance in 2017
Six Fintech Trends of Foremost Importance in 2017Six Fintech Trends of Foremost Importance in 2017
Six Fintech Trends of Foremost Importance in 2017eTailing India
 
TOP TEN: Big Data_ Issue 16 _ Dec 2014
TOP TEN: Big Data_ Issue 16 _ Dec 2014TOP TEN: Big Data_ Issue 16 _ Dec 2014
TOP TEN: Big Data_ Issue 16 _ Dec 2014MOTC Qatar
 
Early Stage Fintech Investment Thesis (Sept 2016)
Early Stage Fintech Investment Thesis (Sept 2016)Early Stage Fintech Investment Thesis (Sept 2016)
Early Stage Fintech Investment Thesis (Sept 2016)Earnest Sweat
 
Mobile in Banking and Finance - What Make Sense and What Not
Mobile in Banking and Finance - What Make Sense and What NotMobile in Banking and Finance - What Make Sense and What Not
Mobile in Banking and Finance - What Make Sense and What Notr4b
 
Australian Telco Digital Strategy Trends 2014 / 2015 v1
Australian Telco Digital Strategy Trends 2014 / 2015 v1Australian Telco Digital Strategy Trends 2014 / 2015 v1
Australian Telco Digital Strategy Trends 2014 / 2015 v1Neil Aitken
 

Similar to Digital In Banking - Summary Trends - Virginia Bankers Association - March 2015 (20)

Mobile Wars: Fintech vs. Banks... and Big Tech in Ambush
Mobile Wars: Fintech vs. Banks... and Big Tech in AmbushMobile Wars: Fintech vs. Banks... and Big Tech in Ambush
Mobile Wars: Fintech vs. Banks... and Big Tech in Ambush
 
The Evolving Realities of Digital Marketing:
The Evolving Realities of Digital Marketing: The Evolving Realities of Digital Marketing:
The Evolving Realities of Digital Marketing:
 
Eric van Tol - Businesscases & Verdienmodellen
Eric van Tol - Businesscases & VerdienmodellenEric van Tol - Businesscases & Verdienmodellen
Eric van Tol - Businesscases & Verdienmodellen
 
Big Data in Banking (White paper)
Big Data in Banking (White paper)Big Data in Banking (White paper)
Big Data in Banking (White paper)
 
Emerging Technology, Shiny Objects & The Future of Media - iSummit - Fred Steube
Emerging Technology, Shiny Objects & The Future of Media - iSummit - Fred SteubeEmerging Technology, Shiny Objects & The Future of Media - iSummit - Fred Steube
Emerging Technology, Shiny Objects & The Future of Media - iSummit - Fred Steube
 
1. FINTECH Course NMIMS - CONTEXT (Guest Lecture by NIRAJ VAIDYA)
1. FINTECH Course NMIMS - CONTEXT (Guest Lecture by NIRAJ VAIDYA)1. FINTECH Course NMIMS - CONTEXT (Guest Lecture by NIRAJ VAIDYA)
1. FINTECH Course NMIMS - CONTEXT (Guest Lecture by NIRAJ VAIDYA)
 
Clintwhitepaper
ClintwhitepaperClintwhitepaper
Clintwhitepaper
 
Maximising Online Resource Effectiveness Workshop Session 1/8 Introduction
Maximising Online Resource Effectiveness Workshop Session 1/8 IntroductionMaximising Online Resource Effectiveness Workshop Session 1/8 Introduction
Maximising Online Resource Effectiveness Workshop Session 1/8 Introduction
 
Maximising Online Resource Effectiveness: Workshop Introduction
Maximising Online Resource Effectiveness: Workshop IntroductionMaximising Online Resource Effectiveness: Workshop Introduction
Maximising Online Resource Effectiveness: Workshop Introduction
 
Ps113 transactis-june2010
Ps113 transactis-june2010Ps113 transactis-june2010
Ps113 transactis-june2010
 
IBM Report Final
IBM Report FinalIBM Report Final
IBM Report Final
 
Getting Going with Mobile (What Your Users Really Want!)
Getting Going with Mobile (What Your Users Really Want!)Getting Going with Mobile (What Your Users Really Want!)
Getting Going with Mobile (What Your Users Really Want!)
 
Mobile Banking Trends
Mobile Banking TrendsMobile Banking Trends
Mobile Banking Trends
 
The Digital Revolution
The Digital RevolutionThe Digital Revolution
The Digital Revolution
 
South By South Best 2018
South By South Best 2018 South By South Best 2018
South By South Best 2018
 
Six Fintech Trends of Foremost Importance in 2017
Six Fintech Trends of Foremost Importance in 2017Six Fintech Trends of Foremost Importance in 2017
Six Fintech Trends of Foremost Importance in 2017
 
TOP TEN: Big Data_ Issue 16 _ Dec 2014
TOP TEN: Big Data_ Issue 16 _ Dec 2014TOP TEN: Big Data_ Issue 16 _ Dec 2014
TOP TEN: Big Data_ Issue 16 _ Dec 2014
 
Early Stage Fintech Investment Thesis (Sept 2016)
Early Stage Fintech Investment Thesis (Sept 2016)Early Stage Fintech Investment Thesis (Sept 2016)
Early Stage Fintech Investment Thesis (Sept 2016)
 
Mobile in Banking and Finance - What Make Sense and What Not
Mobile in Banking and Finance - What Make Sense and What NotMobile in Banking and Finance - What Make Sense and What Not
Mobile in Banking and Finance - What Make Sense and What Not
 
Australian Telco Digital Strategy Trends 2014 / 2015 v1
Australian Telco Digital Strategy Trends 2014 / 2015 v1Australian Telco Digital Strategy Trends 2014 / 2015 v1
Australian Telco Digital Strategy Trends 2014 / 2015 v1
 

Digital In Banking - Summary Trends - Virginia Bankers Association - March 2015

  • 1. Blackstone Technology Group Proprietary and Confidential Prepared by: Prepared for:Ken Hans Partner, Executive Director Financial Services
  • 2. 2 Table of Contents  Digital Trends  Shifting Banking Trends  Here Come the Millennials  Strategies to Reach Customers-Digital Banking 1.0  Emerging Strategies to Reach Customers-Digital Banking 2.0  Takeaways Blackstone Technology Group Proprietary and Confidential 3/11/2015
  • 3. Blackstone Technology Group Proprietary and Confidential
  • 4. Global ‘Tech’ Statistics Related to Our Everyday Life 4 3/11/2015Blackstone Technology Group Proprietary and Confidential It is estimated that 10% of all photos in existence on the planet were created in last 45 days Digital Trends Banking & Technology Conference, 2014 “It is estimated that every 24 hours the world produces a greater volume of overall digital content than all paper-based books, newspapers and magazines ever made” Given how much digital data the world is consuming, digital information scientists see that the world is not far away from having to commonly quantify data capacities in yottabytes Value Metric 1000 kB kilobyte 10002 MB megabyte 10003 GB gigabyte 10004 TB terabyte 10005 PB petabyte 10006 EB exabyte 10007 ZB zettabyte 10008 YB yottabyte
  • 5. ‘Tech’ Statistics Related to MY Everyday Life 5 3/11/2015Blackstone Technology Group Proprietary and Confidential Number of Household Internet-Connected Digital Devices This Speaker’s Household Dad, Age 43 Mom, Age 43 Daughter, Age 9 Son & Daughter (twins), Age 7 Son, Age 5 Mobile Devices 1.Samsung Galaxy S5 (Dad) 2.iPhone 5s (Mom) 3.iPhone 4s (Kids HMD) 4.iPhone 4 (Kids HMD) 5.iPod Touch (Kids) 6.iPod Touch (Kids) Tablets 1.iPad Air (Dad) 2.iPad3 (Mom) 3.iPad2 (Kids HMD) 4.iPad (Kids HMD) 5.Kindle (Mom) 6.Kindle (Daughter) Laptops 1.Dell-Windows7 (Dad) 2.Dell-Linux (Mom) 3.Dell-Linux (Kids HMD) Media Servers 1.Dell-Linux (Dad) 2.Sony-Linux (Dad) Notes HMD – hand me down - engaged in digital banking Digital Trends
  • 6. Source: AntiqueTech: The ENIAC vs. The Cell Phone, http://www.antiquetech.com/?page_id=1438 Source: Wikipedia: ENIAC (http://en.wikipedia.org/wiki/ENIAC) Modern Phones/Devices 6 3/11/2015 VS. An ‘Old School’ Mobile Device The First Computer The ENIAC – The Electronic Numerical Integrator And Computer Cost: $6,000,000 Size: 8’ H x 3’ D x 80’ L Weight: 30 tons Uptime: 50% Digital Trends Samsung SGH-A850 ‘Flip’ phone Cost: $350 (17,000x less) Size: 1.5”H x 0.5” D x 2.5” L (40Mx smaller) Weight: 8 oz (120,000X lighter) Uptime: 99.999% Calcs per Second: 385 Calcs per Second: 390,000 (1000x)
  • 7. And How about ‘Modern’ Mobile Devices? 7 3/11/2015Blackstone Technology Group Proprietary and Confidential Five Fast Facts on Modern Smartphones Digital Trends Source: Gadgets Arena: 5 Mind Blowing Facts about your smartphone (http://www.gadgets-arena.com/5-mind-blowing-facts-about-your-smartphone/) 1. Off the Charts Processing Power ENIAC => Flipphones => Smartphones Calcs/Commands per Second 385 390,000 28,000,000,000 xFaster -- 1,000 72,000 2. By Definition, it IS a PC 3. Smartphone Market is fastest growing industry ‘A personal computer (PC) - a general-purpose computer, whose size, capabilities and original sale price makes it useful for individuals, and is intended to be operated directly by an end-user with no intervening computer operator’. 1975 to 2008: 1 billion computers were sold (desktops, laptops and servers) 2013: 1 billion+ smartphones were sold Around 80% of the world’s total population now has a smartphone
  • 8. And How about ‘Modern’ Mobile Devices? 8 3/11/2015Blackstone Technology Group Proprietary and Confidential Five Fast Facts on Modern Smartphones Digital Trends 4. NASA will use smartphones as ‘cheap satellites’ 5. Devices that Smartphones now replace PhoneSat takes advantage of commercial products already imbued with: 1) speedy computing chips 2) lots of memory 3) ultra-tiny sensors like high-resolution cameras and navigation devices “That’s a mix of attributes akin to what spacecraft require. [And] those are already built into a smart phone.” 1) Phones 2) Flashlights 3) Compasses 4) Cameras 5) Voice recorders 6) Calculators 7) Watches 8) Alarm clocks 9) Gaming Systems 10) Maps & GPS Systems Smartphone satellite prototype Source: Gadgets Arena: 5 Mind Blowing Facts about your smartphone (http://www.gadgets-arena.com/5-mind-blowing-facts-about-your-smartphone/)
  • 9. Are Digital Companies Cashing In? 9 3/11/2015Blackstone Technology Group Proprietary and Confidential Digital Companies Worth Digital Trends Time Magazine Recently Reported Three US tech companies are now each officially worth more than Russia’s entire stock market: Digital Companies are in the green Source: Google joins an elite list of companies, including Exxon Mobile, Microsoft and Apple, Time, Dec 18th, 2014, http://time.com/3639596/google-russian-stock-market/ Apple (AAPL), $654.63 Microsoft (MSFT), $388.82 Exxon Mobil (XOM), $377.72 Berkshire Hathaway (BRK-A), $359.68 Google (GOOG), $358.41 Russia, $325.00 $0.00 $100.00 $200.00 $300.00 $400.00 $500.00 $600.00 $700.00 Stock Value Stock Value (in billions) as of Dec 18th, 2014
  • 10. Blackstone Technology Group Proprietary and Confidential
  • 11. Technology Innovation Has Spawned Financial Innovation Banking 30 Years Ago 1985 Online Banking 1992 Early Mobile Banking 1997 Invention of Smart Phone and Tablet 2007-2010 The pace of technical financial innovation within the last 5 years has moved faster than the last 30 Banking Today Today 11 3/11/2015Blackstone Technology Group Proprietary and Confidential 2007 2010 Banking Trends
  • 12. Where are Customers Interacting with Us 12 3/11/2015Blackstone Technology Group Proprietary and Confidential ‘Bricks and Mortar’ VS. ‘Clicks and Twitter’ Some Branch Stats “~12% of all bank transactions being conducted face-to-face.” -Great Lakes Area Community Bank “~80% of day-to-day banking transactions being conducted digitally.” -Top 10 US Bank “We’ve seen a ~60% reduction in branch traffic over last 10 years.” -Top 10 US Bank Why Branch Slowdown? Banking Trends Reported US Branch Openings/Closings, Q1 20141 1 - Source: Grand Openings: The State of Marketing New Branches, ,Media Logic, Dec 3, 2014, http://www.medialogic.com/financial-services/blog/grand-openings-state-marketing-new-branches/ “People effectively carry a branch in their pocket.” -Brian Moynihan, CEO, Bank of America
  • 13. Our Digitally-Connected Bank Customers are Moving Towards the Path of Least Resistance Where are Customers Interacting with Us 13 3/11/2015Blackstone Technology Group Proprietary and Confidential ‘Bricks and Mortar’ VS. ‘Clicks and Twitter’ We’re no Longer Able to Readily Promote, Observe, and Interact with Customers in Traditional Branch Setting Banking Trends Why? Digital Channel has given customers the most expedient path to conduct financial transactions (i.e., Path of Least Resistance) My Own Experience… Is this Bad? While banks can debate this, interactions by today’s bank customer through the digital channel are:  Easier for Customers (Higher Satisfaction)  Cheaper for Bank (Lower Cost of Service) 1 - Source: Will Becoming Smaller Pay Off For Bank of America and JPMorgan Chase & Co?, Motley Fool, http://www.fool.com/investing/general/2014/07/10/will-becoming-smaller-pay-off-for-bank-of-america.aspx $4.25 $1.25 $0.10 $- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $4.50 Branch-Teller-Assisted Check Deposit Branch-ATM Check Deposit Digital-Mobile Check Deposit Average Bank Processing Cost for a Check Deposit
  • 14. 14 3/11/2015Blackstone Technology Group Proprietary and Confidential ‘Bricks and Mortar’ VS. ‘Clicks and Twitter’ The New Rules of the Road to Reach Customers Banking Trends Where are Customers Interacting with Us
  • 15. START CONTINUE COMPLETE Where are Customers Interacting with Us 15 3/11/2015Blackstone Technology Group Proprietary and Confidential ‘Bricks and Mortar’ VS. ‘Clicks and Twitter’ 98% of people move across digital channel devices (mobile phone, tablet, online) within same day to accomplish specific tasks - Backbase Banking Trends Customers Want to Interact Easily with their Bank Across Their Devices Goal: Reduce Friction, and Make Process Seamless
  • 16. 16 3/11/2015Blackstone Technology Group Proprietary and Confidential Banking Trends Where are Customers Interacting with Us ‘Bricks and Mortar’ VS. ‘Clicks and Twitter’ 53% of respondents said they use their current banks’ mobile app at least weekly, and more than 88% of these frequent mobile banking app users also indicated that they log into their bank’s online banking website at least weekly. - The Financial Brand Banking Customers are traversing online and mobile frequently Goal: Cater to Each Digital Banking Channel, while Striving for Consistency of User Experience 1 - Mobile vs. Online Banking: It’s Not Either/Or, Consumers Want Both, The Financial Brand, August 12, 2014, http://thefinancialbrand.com/41560/mobile-online-banking-usage/
  • 17. Device Market Penetration: The ‘Big 2’ 17 3/11/2015Blackstone Technology Group Proprietary and Confidential iOS and Android currently own 90%+ of consumer penetration in the mobile and tablet marketplaces, respectively. Statistics which support this: Mobile Devices iOS and Android OS combined for close to 94% of mobile device market share through 2014. Tablets iOS and Android combined for 98% of tablet market share in 2012, and these two operation systems are forecasted to hold 90%+ market share of the tablet market through 2017. Source1: http://www.comscore.com/Insights/Market-Rankings/comScore-Reports-July-2014-US-Smartphone-Subscriber-Market-Share Source 2: http://tabtimes.com/resources/the-state-of-the-tablet-market, section: ‘OS market share in tablet unit sales’ Banking Trends This device market data shows why mobile banking vendors are catering to iOS and Android virtually exclusively at this stage
  • 18. Are Banks Believing the Digital ‘Hype’? 18 3/11/2015Blackstone Technology Group Proprietary and Confidential Banking Trends “BBVA will be a software company in the future” Francisco Gonzalez, Bank Chairman % of BBVA Bank Employees Focused on Digital Banking 2015 2020 (Estimated) 3% 50% The New Competitor Landscape (in addition to traditional banks) from BBVA’s perspective: Source: Mobile Turning BBVA’s Future Into a Software Company, pymnts.com, March 6th, 2015, http://www.pymnts.com/news/2015/mobile-turning-bbvas-future-into-software-company/
  • 19. Are Banks Believing the Digital ‘Hype’? 19 3/11/2015Blackstone Technology Group Proprietary and Confidential Banking Trends Top 2015 Priorities for Bank CIOs1 1. Mobile Banking 2. On-Line Banking … 1 - Source: How Banks Are Allocating Their Tech Budgets for 2015, America Banker, Dec 8, 2014, http://www.americanbanker.com/news/bank-technology/how-banks-are-allocating-their-tech-budgets-for- 2015-1071546-1.html 2 – Source: Top 10 Community Bank IT Projects, American Banker, http://www.americanbanker.com/gallery/top-10-community-bank-it-projects-1072933-1.html Select Top Community IT Projects2 1. Real-Time Electronic Payments - CBW Bank 2. Mobile App Integration with Their ATMs – Wintrust Financial 3. Overhauled mobile and online platforms – Radius Bank 4. Expanded Mobile App Offering to Small Business Loans – C1 Financial … A Large Midwest Bank’s Lesson…
  • 20. Blackstone Technology Group Proprietary and Confidential
  • 21. The Millennials Customer Demographic Trends 21 3/11/2015Blackstone Technology Group Proprietary and Confidential Source: ‘This year Millennials will overtake Baby Boomers’, January 16th, 2015 (http://www.pewresearch.org/fact-tank/2015/01/16/this-year-Millennials-will-overtake-baby-boomers/) This year, the “Millennial” generation is projected to surpass the outsized Baby Boom generation as the nation’s largest living generation By 2015 Millennials will increase in size to 75.3 million and become the biggest group [for the better part of this century]
  • 22. The Millennials So Who are the Millennials 22 3/11/2015Blackstone Technology Group Proprietary and Confidential Sources: 1. Top 7 Things Millennials Demand from Brands, Immersive, Feb 19th, 2015, (http://www.immersiveyouthmarketing.com/blog/top-7-things-Millennials-demand-from-brands) 2. Millennial Marketing: New Age of Hospitality Consumers, Richfield Hospitality, Aug 14th, 2014, http://www.richfield.com/blog/?p=339 3. Hiring Millenials-How This Generation can impact your team, SmartTalent, Aug 15th, 2014, http://www.smarttalent.net/tag/tips-for-hiring-Millennials/ 4. Millennials Use Mobile Devices More Than Previous Generations, ScreenMedia Daily, Apr 4, 2013, http://screenmediadaily.com/Millennials-use-mobile-devices-more-than-previous-generations/ Caucasian 60% Hispanic 20% Black 14% Asian 5% Other 1% Ages 18-34 (DOB 1981-1997) Top 5 Things Making Them Unique 1. Technology Use 2. Intelligence 3. Music & Pop Culture 4. Libertarianism & Tolerance 5. Clothes & Fashion Also Known As “The Net Generation” Beginning to enter their earning and spending years Leverage mobile devices more than most others…
  • 23. The Millennials How Different Are Millennials than Previous Generations? 23 3/11/2015Blackstone Technology Group Proprietary and Confidential Gen X Concerts Millennial ConcertsVS
  • 24. The Millennials How Different Our Millennials than Previous Generations? 24 3/11/2015Blackstone Technology Group Proprietary and Confidential VS
  • 25. Gen X Brand Exposure The Millennials How Different Our Millennials than Previous Generations? 25 3/11/2015Blackstone Technology Group Proprietary and Confidential Millennial Brand ExposureVS
  • 26. The Millennials How Similar Our Millennials than Previous Generations? 26 3/11/2015Blackstone Technology Group Proprietary and Confidential Source: Millennial Marketing: New Age of Hospitality Consumers, Richfield Hospitality, Aug 14th, 2014, http://www.richfield.com/blog/?p=339 Millennials Say Some of the Most Important Things in Their Lives will be: Important to Them Being a Good Parent Owning a Home Having a High-Paying Career Relationship Opportunity for Banks Credit/Loan Products to Support Family Life Mortgage, HELOCs Additional Loans/Credit to Fund Lifestyle
  • 27. Blackstone Technology Group Proprietary and Confidential
  • 28. Blackstone Technology Group Proprietary and Confidential 28 3/11/2015 Reaching Customers - Digital Banking 1.0 Reaching Customers with Live and Fresh Information Live ‘Channels’ within Your Digital Apps Samples Live Product & Rate Feeds News Feeds Dynamically Controlled Bank Controlled Marketing Ads Interweaving Messaging and Customer Touch- points in and Around Banking Functionality You Bank Rates - Charlottesville
  • 29. Blackstone Technology Group Proprietary and Confidential 29 Celebrating The Product and Services You Deploy to Customers Reaching Customers - Digital Banking 1.0 Forever the Mindset: “What’s In it For Them” Samples (In and Around Launch) HTML Emails Prominent Website Shingle (in and around feature launch) Updates to LinkedIn and Facebook Don’t keep a secret the services you’ve worked hard to deploy to your digital channel
  • 30. Blackstone Technology Group Proprietary and Confidential 30 3/11/2015 Reaching Customers - Digital Banking 1.0 Ratings and Comments Providing Insight Into What Customers Want App Stores Driving Banking Digital Roadmaps Meaningful Customer Input Real-time feedback mechanism from digital channel What is working / what is not (performance, features) What other services desired App Store Feedback is driving input into digital roadmaps Samples: “Where’s my loan?”//“Where’s my tablet app?”// “I wish I could manage my cards…”
  • 31. Source: ‘CMO of the Week: Michael Lacorazza, of Wells Fargo, on Staying Customer-Centric’, Social Media Today, Feb 26, 2015, http://www.socialmediatoday.com/special-columns/2015-02-26/cmo-week- michael-lacorazza-wells-fargo-staying-customer-centric?utm_content=12561656&utm_medium=social&utm_source=twitter Source: ‘7 Social Media Trends for Consumers: New Research’, Social Media Examiner, January 16, 2013, http://www.socialmediaexaminer.com/7-social-media-trends-for-consumers-new-research/ Listening to Social Media 31 3/11/2015Blackstone Technology Group Proprietary and Confidential Reaching Customers - Digital Banking 1.0 Meaningful Customer Insight More and more consumers prefer to address issues via social channels vs. calling a contact center Banks are both tuning in and responding to customers issues / complaints / wants, in real time As well, consumers are using social media to listen and learn more about brands, products, and services they are shopping for Banks Incorporating ‘Social Care’ as Part of Customer Care Experience “Our customers live digital, mobile and social lives. We are continuously investing in social infrastructure to enable us to serve our customers and connect with them where they are.” Michael Lacorazza, CMO, Wells Fargo
  • 32. Alerts 32 3/11/2015Blackstone Technology Group Proprietary and Confidential Reaching Customers - Digital Banking 1.0 Keep ‘Talking’ to Your Customers Banking alerts help to increase customer engagement levels As well, they are helping banks convey to customers: -Protection: We are watching your money and keeping it safe Source: ‘Stay in Touch with your Money’, Brochure on Text Alerts, http://www.comerica.com/personal- finance/Documents/Mobile_Alerts_Handout.pdf Source: ‘Text Message Marketing Statistics”, Tatango, April 10, 2013, http://www.tatango.com/blog/sms-open-rates-exceed-99/ -Convenience: We will let you know about specific money transactions that you specify -Financial Responsibility: We will help you proactively better manage your money Sample Alerts Convenience Low Balance Overdraft Savings Goal Statement Available Transaction Monitoring Large Withdrawal Large ATM Large Debit Transaction Identity Protection Username changes Password changed Account locked Account unlocked Suspicious Activity Card Not Present Foreign Country Transaction Pay At the Pump
  • 33. Understanding Behavior – Digital Enrollment & Activity 33 3/11/2015Blackstone Technology Group Proprietary and Confidential Reaching Customers - Digital Banking 1.0 Digital Chanel Adoption Trend Line 79,421 <-- Your Bank Evaluating Tangible Activity Check Balance, 1,771,624 , 43% View Transaction History, 1,362,343 , 33% View Payees/Make payments, 465,210 , 11% Configure Alerts, 318,242 , 8% Make a Transfer, 114,322 , 3% Find a Location, 78,522 , 2% Digital Banking Activity Baseline of transactions users are conducting ‘1.0’ version of reporting on mobile/tablet: -Enrollment -Server Side Committed Transactions Gaps Lack of continuity in reporting across online and mobile Lack of Non-committed activity (RDC abandonment, use of financial tools/calculators)
  • 34. Blackstone Technology Group Proprietary and Confidential
  • 35. FIs are Beginning to Define a ‘Digital 2.0’ Strategy Blackstone Technology Group Proprietary and Confidential 35 How do we now differentiate beyond the ‘me too’ to create a ‘Digital 2.0’ experience? Integrated online and mobile banking is in its relative infancy, and more and more customers are interchanging throughout each as their preferred channels of bank interaction How do we create more stickiness and brand loyalty via digital? It’s important to build on a platform that can provide flexibility for future updates How do we monetize the digital channel? The future of digital banking is heading towards more advanced trends such as enriched user experience, personalized marketing & customer service, enhanced security, voice recognition and near field communication There is a growing trend in FIs looking for ways to monetize the digital channel Questions we see FIs (Banks, CUs, Credit Card Cos) looking to solve for, now that they have a ‘Digital 1.0’ mobile and online presence in place: Reaching Customers - Digital Banking 2.0 3/11/2015
  • 36. 36 3/11/2015Blackstone Technology Group Proprietary and Confidential Software Architecture Maturity and Responsive Design Approaches Are Making These Unified Digital Banking Platforms A Reality Emerging Strategies – Digital Banking 2.0 Convergence of Mobile and Online Banking Solutions Creating Consistency in the Cross-Device User Experience Benefits One Platform to Deploy Ads Across the Digital Channel Integrated Activity/Response Reporting Across the Digital Channel Faster Time to Deploy Products and Services Across the Digital Channel
  • 37. 37 3/11/2015Blackstone Technology Group Proprietary and Confidential Mint.com For Your Bank Platforms are Enabling Banks to Help Their Customer Consolidate their Finances and Provide Financial Planning Tools Benefits Creates More Stickiness to Your Bank Site By Enabling Them to Come to ‘One Site’ to Manage Their Finances Arm Your Customers with Tools to Help them Be More Fiscally Responsible Ability to Create Personal Cross-Sell Marketing Campaigns Based on What Other Products They Have (Win-Win) Sample Financial Planning Tool Emerging Strategies – Digital Banking 2.0
  • 38. 38 3/11/2015Blackstone Technology Group Proprietary and Confidential Making More Judicious Use of the Tablet No longer just ‘An iPhone App running in an iPad’ Benefits Take Advantage of the Larger Screen Real Estate and Computing Power Provide More Account Details, More Product and Offer Information Leverage As Tool to Create Account Opening Workflows with Ease of Form Completion and OnBoard Camera (Patriot Act Compliance) Sample iPad Tablet Banking App Emerging Strategies – Digital Banking 2.0
  • 39. 39 Catering to the Mobile Smartphone vs. the Tablet, based on their respective orientations, continue to reveal more distinct use cases as the use of tablet devices continues to further proliferate in the marketplace. This presents opportunities for digital marketers to take advantage of the lean back orientation of tablet users to be able to promote product and services that would likely not be as highly considered in the ‘lean forward’ orientation of a mobile smart phone user. ‘Lean Back’ Tablet Characteristics ‘Lean Forward’ Smart Phone Characteristics ◊ More Time ◊ Less Time ◊ Stationary Utilization ◊ On-The-Go Utilization ◊ Exploration Oriented ◊ Action Oriented ◊ Higher UX ◊ Lower UX Making More Judicious Use of the Tablet Emerging Strategies – Digital Banking 2.0
  • 40. How to Better Serve and Originate Customers 40 3/11/2015Blackstone Technology Group Proprietary and Confidential The [digital device] camera, geolocation services, and mobile operator subscriber databases are all being leveraged to improve banking services…”1 Potential Uses: 1 - Oct 30th, 2014 Article Device Camera -Take Picture of your Bill to Auto Setup as biller -Take Picture of ID and Utility Bill for New Customer Account Opening Geolocation -Correlating customer location with transaction activity to detect potential fraud -’Geofencing’ to identify/pre-serve a customer before they walk in the door of the branch With more digital device capabilities comes more opportunity for innovative ways to serve customers better Emerging Strategies – Digital Banking 2.0
  • 41. Blackstone Technology Group Proprietary and Confidential 41 Step 1 Tap the new voice login button Step 2 Speak your Voice passphrase Step 3 Bank using voice comands A C C E S S Future - Voice-Enabled Mobile Banking 3/11/2015 Emerging Strategies – Digital Banking 2.0 Prototyped voice banking concept on Monitise mobile platform
  • 42. Beyond Listening Becoming part of the conversation Leading with ‘What’s In it for them’, then tie it to a relevant product or services that could help Staying relevant and having presence where customers and/or future customers congregate more and more 42 3/11/2015 Social Media – Contributing to Stay Relevant Emerging Strategies – Digital Banking 2.0 Some banks are adopting a posture towards social media contribution of “don’t ‘sell’, just ‘connect’”
  • 43. Expanding Insight and Tracking across entire digital channel Capture page Flows across all digital channels (mobile, online, loan origination, etc) Not Just Transactions, but View Page Flow Activity by user, channel, device, region, etc. Trend across time as data accumulates 43 3/11/2015 Digital Insight – Measuring More Comprehensive Activity Emerging Strategies – Digital Banking 2.0
  • 44. Sample New Digital Intelligence Insight Targeted Action 44 3/11/2015 Digital Insight – Better Targeting Location based: High mobile banking use in a specific county business park Target mobile small business banking banner ads in this geography Behavior based: Spike in use of used car loan financial calculator Target mobile auto loan banner ads in mobile channel Location/Behavior based: High number of ATM searches on a specific zipcode in a specific county Add an ATM in the highly requested geography Target mobile ATM ads in this geography Emerging Strategies – Digital Banking 2.0
  • 45. Uncover Missed Opportunities  Ad Placement issues (High Page usage, No Ads)  Ad Creative issues  High Time Spent, Low Click  Low Click, High Apply  Product issues (High Click, Low Apply)  Process issues (High Click, High Apply Begin, Low Apply End)  Strategy issues (High Channel Spend, Low ROI)  Target User issues (Low Click, Apply and Conversion) Discover New Potential  Trends in channel usage and conversion across time  High conversion on ad resulting in multiple product sales 45 3/11/2015 Digital Insight – Better Feedback Mechanisms Emerging Strategies – Digital Banking 2.0
  • 46. 46 3/11/2015 Digital Insight – Better Targeting Emerging Strategies – Digital Banking 2.0 ‘Data is the New Oil in the Digital Economy’ “Data is an immensely, untapped valuable asset” “Data infrastructure should become a profit center” “Good data beats opinion” Source: ‘DATA IS THE NEW OIL OF THE DIGITAL ECONOMY’, Wired, http://www.wired.com/2014/07/data-new-oil-digital-economy/
  • 47. Blackstone Technology Group Proprietary and Confidential
  • 48. 48 Takeaways  The digital age is here to stay, embrace it to stay competitive  Shifting consumer demographics show us that today’s (and future) customers expect and demand to interact with us via digital channel, so stay tuned to social and digital mediums  Continued features and updates to digital channel show banks ‘interest’ and dedication in serving customers  Consider emerging platforms that combine mobile and digital into one platform, that provides better customer experience, ability for personalized marketing, and lower TCO  Data is the new oil in the digital age, the more you track the more you’ll learn and be able to better market to and serve your customers Blackstone Technology Group Proprietary and Confidential 3/11/2015
  • 49. Blackstone Technology Group Proprietary and Confidential Prepared by: Prepared for:Ken Hans Partner, Executive Director Financial Services
  • 50. Blackstone Technology Group Proprietary and Confidential