On the 29’th and 30’th of June MarketForce hosted the Future of Digital Banking conference in London, England, to which I attended. The purpose of the event was to bring global banks together to inform and present ideas and strategies to one another on where the future of banking is taking place. With four sessions taking place throughout each day, broken up by intervals for networking over delectable food, the event was an undoubtedly a success.
The highlight of the event, I found, was during one of the hosted panel discussions which involved Barclay’s Director of Digital Products and Propositions, Laura Joseph. This panel discussed the nature of data-driven digital engagement strategies to which Joseph captivated the audience with her insights on the “creepiness” of data.
With the surge in big data becoming the norm and its uses expanding, Barclays decided to conduct research to find out the impact upon customers knowing what data is being collected and why. The bank found that after multiple visits to the site customers became desensitised and the tracking lost its “creepiness” as it became the standard.
During the discussion, Joseph aptly states that “loyalty is a terminally ill patient”, which is where the need to use data has come from, to measure how to keep customer retention.
The decline in loyalty can be paired with the rise in choices available to the customers which has ultimately benefited the customer and forced banks to rethink their strategies on how to go about retention.
Dr Reuven Shnaps also delivered a talk on how analytics can drive Personal Offering over the Digital Channel. This talk consisted of pointing out how old fashioned banks don’t consider what their customers want or need.
He informed the listeners that they need to stop thinking in terms of tradition and instead to push boundaries and actually assume the customer’s point of view. Shnaps outlined the way people think about finances in three time periods.
Someday; ambitions for mortgages, rainy day funds and holidays.
Tomorrow; budgeting for bills, luxuries and fairly important things.
Today; necessities such as travel and food etc.
The primary method that banks can execute to understand their customer’s financial needs is to be aware of what is happening to that customer. This takes place in the form of gathering data.
“Personalised analytics is at the heart of tomorrow’s retail banking evolution and is an opportunity that banks don’t exploit as they have a siloed approach, legacy system and lack of analytical talent.”
From BNP Paribas Cristina Cordovez de Villeneuve, Chief Digital Officer, gave a talk about how to establish the roots of future-proofing digital strategies. Using a variety of analogies to demonstrate the view of the company, she discussed the digital risks being faced by the industry, how the industry should start to transform and challenges being tackled in regards to transitioning employees onto the digital platforms.
Villeneuve explained that “digital have to be like slippers; comfy”, if they are not then it will be discarded without second thought. The notion of customer loyalty seems to be quickly becoming an idea of the past. From the rise of comparison sites it is evident that any banks’ offer is scrutinized and judged amongst their peers as if each offer is identical with the same merits. This means that banks have to approach how they interact with customers so they are able to get positive feedback and prestige on these types of sites.
Banking transformations were compared to a structure of an onion consisting of three layers. These layers were outlined as being made up of; a need to evolve the banking model transformation, business lines need to rethink the economic model and employees need to adopt a ‘digital mindset’ along with new tools. If a bank is able to develop these three layers then they can be prepared for the future.
Benjami Puigdevall, the Managing Director for Caxia Bank, offered a different insight into banking, consisting of how Caxia Bank is focussing on millennial banking. For this, the bank have released a special project named Imagin which is purely mobile, has 100% digital processes, friendly tone functional and has a social layer. The reason for this is because of Caxia’s desire to be the biggest social group for banking millenials.
Caxia Bank persued this after conducting research which showed millenials are more open to using alternative banks and a very strong percentage of them expected services to be or to become mobile without fees and with clear and direct communication.
Written by Dylan Jones