Building the 10x better bank, by @joukpleiter & @jelmerdejong
Slides of the November 11, 2015 webinar 'Omni-channel banking & the digital transformation roadmap'.
In this webinar, Jouk Pleiter and Jelmer de Jong of Backbase will talk about building the 10-times-better bank.
The financial services market is going through many changes. New challengers have appeared and are looking for a slice of the market. In addition, customers are more demanding and more informed, expecting convenience and simplicity when it comes to financial services, particularly online and via mobile devices. People love digital services such as Netflix, Amazon, and Uber because they’re easy to use and deliver great customer experiences. They deliver 10 times more convenience and better customer experiences than the status quo, and are therefore winning the market. It’s only a matter of time before the 10-times-better bank is founded, a thought that's on the radar of every banker.
In this webinar, we outline the journey of creating the 10-times-better bank, providing a detailed analysis of how banks can begin their digital journey, with a strong focus on five main points:
1) new competitors in banking: the disrupters
2) customer experience: the key ingredients
3) omni-channel and the changing channel mix
4) mobile's impact on online sales and share of wallet
5) regaining control in the era of digitization
5. New competitors in banking
0
5
10
15
20
25
30
5
Who do you see as the Biggest Threat?
6. New competitors in banking
6
Where are you Investing?
0% 50% 100%
Digital Channels
Customer Service &
Experience
New Products & Services
Physical channels
distritbution
Core Systems & Processes
Increase
No Change
Decrease
7. New competitors in banking
1. Start with the customer experience
2. Pursue an omni-channel delivery model
3. Make mobile the key growth channel
4. Regain control over your digital strategy
5. Digital Transformation Economics
In short: Beat the Disrupters at their own Game.
7
Digital Transformation – Disrupt Yourself
9. Customer experience: the key ingredients
0 5 10 15 20 25 30
Too many silos
Shortage of quality people
Projects take too much time
High costs
Nu support from senior management
No or low customer culture
9
Customer Experience Roadblocks
10. Customer experience: the key ingredients
10
Challenge: Too Many Silo’s
Secure
Portal 1
Secure
Portal 2
Mobile
App 1
Mobile
App 2
Intranet
App 1
Extranet
App 1
11. Customer experience: the key ingredients
11
Move to a Unified CX Layer
Customer Experience Platform
Superior
Experience
Personal &
Relevant
Fast &
Frictionless
Anytime
Any place
Application
Integration
CRM
Integration
Process
Integration
Security &
Compliance
Existing
Systems CRM Processes IDM
SSO
12. Customer experience: the key ingredients
12
A paradigm shift: Outside-in Approach
Outside-in
Customer enablement
Inside-Out
Web/Mobile Enablement
19. Omni-channel and the changing channel mix
61%
25%
8%
6% Extremely important
Very important
Important
Somewhat
important
19
Seamless Omni-Channel Experiences
20. Omni-channel and the changing channel mix
20
Current Status of the Omni-Channel
19%
30%
25%
22%
4% Expanding
Deploying
Experimenting
Exploring
Not on our radar
21. Omni-channel and the changing channel mix
21
From Channel Islands to Omni-Channel
Source: Forrester Wave for Omni-Channel Banking, September 2015.
“Banks will move from Channel
Islands to Omni-Channel
Banking. This is not about just
technology, it's about the path
to great customer experience
(CX) across all channels, using
the right customer touch-point
at the right time.”
22. Omni-channel and the changing channel mix
22
Vertical monoliths vs Horizontal Layers
23. Omni-channel and the changing channel mix
23
Widgets: Re-Usable Business Capabilities
Omni-channel CXP
Re-Usable
Widgets
P2P, Bill Pay,
Transfer, ….
Payments
Messages, Notify,
Alert, Chat, …
Communication
Core Banking,
Cards, Accounts, …
BANKING SYSTEMS
Portfolio, Coupons,
Offers, eCommerce, ...
3RD PARTY APPS
Spend Analysis,
Goals, Cash flow, …
PFM
Marketing, Campaigns,
FAQ, Support, ...
Content
Origination,
Self-Service, etc.
Origination
24. Omni-channel and the changing channel mix
24
Omni-Channel Orchestration Layer
Core Systems
Core
Systems
Digital
Banking
Services
• Banking: Transactions, Cleansing,
Categorize, Enrich, Savings, Budgets,
Payments, Accounts, Entitlements, …
• Universal: Alerts, Notifications,
Message Center, Auditing, Contacts, …
• Re-Use & Rationalize Existing
Systems
Widget Widget Widget Widget
API API API
Digital Banking Services
CXP Integration Services
25. Omni-channel and the changing channel mix
25
Four Scenarios of the Future Bank
After Alessandro Hatami, published on Banknxt.
Scenario 1
Better Bank
Scenario 2
New Bank
Scenario 3
Distributed Bank
Scenario 4
Omni-Channel Bank
Built-for-Digital Banking Platform
Digital
Banking
Interface
Banking
Services
Aggregator
Full
Omni-Channel
Banking
Interface
Fintech Providers
Fintech Providers
Fintech Providers
Legacy Banking Platform
Fintech Providers
Fintech Providers
Fintech Providers
Banking Platform
Customers
26. Startups win by doing
one (1) thing well
Banks win by integrating the UX
using APIs.
26
27. Omni-channel and the changing channel mix
Technology : API Gateway
Enterprise API Delivery Platform
• Leverage existing systems,
processes, & relationships
• Support multiple platforms from a
single infrastructure
• Convert backend interfaces into
usable external APIs
• Meet enterprise security,
compliance, & operational
requirements
Partners API Owners Applications
Own APIs 3rd Party APIs
Partner
Platform
Internal
Platform
28. Omni-channel and the changing channel mix
Business : Accelerate Digital + Monetize your Assets
30. Regain control in the era of digitization
0
10
20
30
40
50
60
Physical
Channels
Agents Contact
Center
Online
(web)
Mobile Other
30
What channel drives the most revenue?
2015
31. Regain control in the era of digitization
0
10
20
30
40
50
60
Physical
Channels
Agents Contact
Center
Online
(web)
Mobile Other
31
And your expectations for 2020?
2020
32. Regain control in the era of digitization
30%
25%7%
7%
30%
1%
Public Marketing Site
Campaign Pages
Closed Internet Banking
Mobile Apps
Social Media
Other
32
What Channels can Business Manage?
33. Regain control in the era of digitization
33
Capitalize on your OLB / MB Traffic
15% 85%
Bookmarks Mobile
Public Site Closed Environment
34. Regain control in the era of digitization
34
Create, Measure and Optimize Journeys
35. Regain control in the era of digitization
35
Empower Business with Visual CX Editor
36. Regain control in the era of digitization
36
Enable Business & IT collaboration
43. Start your journey now
Our mission is to help Financials to Create, Manage, and
Optimize Omni-Channel Customer Interactions.
43
44. Start your journey now
44
Backbase = Omni-Channel Banking Leader
Forrester Market Wave for
Omni-Channel Banking Solutions
Jost Hopperman (September 2015)
“Backbase leads the Pack”.
ü Broad business capabilities,
ü Rich customer experience,
ü Very solid technology and
architecture
45. Start your journey now
Digital Transformation RoadmapDigital Transformation
Not restricted to channels or
technology only, needs to be a
holistic transformation across back-
office, staff and operations as well.
About building the right mix of
“Bricks and Clicks”.
No silver bullet, it has to be unique
strategy based on business drivers,
customer segment, goals etc.
47. Get the report
47
Efma & Backbase present
Omni-channel banking
The digital transformation roadmap
All you need to create the 10x better bank.
- 15+ executive interviews
- 100+ survey respondents
- 7 habits by Roberto Ferrari
See @backbase on Twitter.
When it comes to industry disruption, who or what do you see as the biggest threat?
25% says technology companies as Google, Apple, Amazon.
22% says startups as Square, Stripe, etc.
19% says neobank of existing players (Simple by BBVA, Touch Bank by OTP Group)
How is your bank investing in 2015?
Most agree
Increase spent:
1) Digital channels
2) Customer Experience
The top 3 roadblocks
Projects take too much time
Too many silos
High costs
Expensive
Three platforms (iOs, Android, Windows), 3 dev-teams
Manageability
IT has content management, business can’t do anything
Cross-device Journey
From phone > tablet > desktop without losing dating / picking up where one left off
Cross-device Insights
Measuring all these different journey’s
ALL in our survey say creating a seamless omni-channel experience is important
The majority (86%) saying it is very or extremely important.
However, when all find it important, only 19% have it currently running.
Rest is still exploring, experimenting or busy deploying.
Critical Business Issue
eBusiness and channel strategy executives need to develop a new generation of digital financial services that are SUPER: simple, ubiquitous, personal, empowering, and reassuring.
Most online banking solutions are good at the basic online transaction capabilities. Rising customer expectations mean that financial services e-Business executives need to fundamentally improve the way they serve customers via digital channels that go way beyond today's transaction capabilities.
Backbase Solution
Backbase Bank 2.0 Portal offers a single platform to manage, monitor and optimize all your online customer interactions.
It enables Banks to create a seamless customer journey between public and personal information and across multiple devices and channels.