Banking On Mobile - Getting Ready For 2016
Tom Farrell - VP Marketing Barry Nolan - VP Strategy
Build a direct relationship with customers
Know and personally interact with every customer in one simple platform.
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3
371K Babies born each day
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580K iPhones sold each day
1,500K Android devices activated each day
371K Babies born each day
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1 @facebook 2 China 3 Tencent @WeChat 4 India 5 @WhatsApp 6 @LinkedIn 7 @instagram 8 @twitter 9 U.S. 10 @Snapchat
Mobile First
When do we stop calling it a phone?
soundandvision
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Data
Voice
The phone is one of the least used apps
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13.0%87.0%
On mobile, people spend 87% time in-app,
versus on the mobile web. ComScore
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7s 38s
Average Interaction Times
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Microsoft attention spans, Spring 2015 | @msadvertisingca #msftattnspans
We know human attention is dwindling
Source: Statistic brain
The average human attention span in
2000 The average human attention span in
2013The average attention span of a
goldfish
12 seconds
8 seconds
9 seconds
6
Why the fast and frictionless win
Microsoft attention spans, Spring 2015 | @msadvertisingca #msftattnspans
We know human attention is dwindling
Source: Statistic brain
The average human attention span in
2000 The average human attention span in
2013The average attention span of a
goldfish
12 seconds
8 seconds
9 seconds
6
The future in banking in two charts
modernlove
The future in banking in two charts
Mobile is universal 4 bn users
source: A16Z
The future in banking in two charts
source: A16Z
Mobile banking apps are rewiring customer interactions
Wherearewenow?
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Internet MobileTelephoneBranch
-15% -13% 25% 940%
Source: BBA 2010-2015
# INTERACTIONS 2010-2015
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2%
- of payments and transfers by HSBC are now done in a branch
- the proportion of all digital banking by Halifax
now done on a mobile phone
65%
Source: BBA
17
NatWest Bank’s busiest branch is the 7:15am train from St. Albans.
This is a mobile-moment
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Customer behavior and loyalty in retail banking | Bain & Company, Inc.
Page 10
10
15
20
25
30
35
40
45
50
55%
10 15 20 25 30 35 40 45 50 55%
Mobile interactions as a percentage of total interactions, 2013 and 2015
South Korea NetherlandsMobile exceeds online
Online exceeds mobileUS
AustraliaChina
Singapore
HongKong
Mexico
India
UK
France
CanadaPoland
Germany
Spain
Online interactions as a percentage of total interactions
Japan
Sources: Bain/Research Now NPS surveys, 2013 and 2015; Bain/GMI NPS surveys, 2013
2013 2015
0
20
40
60
80
100%
Chi
na
Sout
h Ko
rea
Indi
a
Hon
g Ko
ng
Braz
il
Pola
nd
Fran
ce
Mex
ico
Spai
n
US
Sing
apor
e
Net
herla
nds
UK
Aus
tralia
Ger
man
y
Can
ada
Japa
n
Percentage of people who would miss their phone more than their wallet, 2015
AverageUnder age 25
Age 55 or more
Source: Bain/Research Now NPS surveys, 2015
Figure 4: Mobile is displacing online in banking
Figure 3: Most consumers in most countries would miss their phone more than their wallet
Customer behavior and loyalty in retail banking | Bain & Company, Inc.
Page 10
10
15
20
25
30
35
40
45
50
55%
10 15 20 25 30 35 40 45 50 55%
Mobile interactions as a percentage of total interactions, 2013 and 2015
South Korea NetherlandsMobile exceeds online
Online exceeds mobileUS
AustraliaChina
Singapore
HongKong
Mexico
India
UK
France
CanadaPoland
Germany
Spain
Online interactions as a percentage of total interactions
Japan
Sources: Bain/Research Now NPS surveys, 2013 and 2015; Bain/GMI NPS surveys, 2013
2013 2015
0
20
40
60
80
100%
Chi
na
Sout
h Ko
rea
Indi
a
Hon
g Ko
ng
Braz
il
Pola
nd
Fran
ce
Mex
ico
Spai
n
US
Sing
apor
e
Net
herla
nds
UK
Aus
tralia
Ger
man
y
Can
ada
Japa
n
Percentage of people who would miss their phone more than their wallet, 2015
AverageUnder age 25
Age 55 or more
Source: Bain/Research Now NPS surveys, 2015
Figure 4: Mobile is displacing online in banking
Figure 3: Most consumers in most countries would miss their phone more than their wallet
Mobile is displacing online in banking
Source: Bain Research
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Customer behavior and loyalty in retail banking | Bain & Company, Inc.
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0
5
10
15
20 20
17
1514 14 14
12 12 1211
10 10 9 9 9
6
2
Average number of routine interactions per respondent in last quarter, 2015 N
ethe
rland
s
Sout
h Ko
rea
Fran
ce
Aus
tralia US
UK
Chi
na
Spai
n
Pola
nd
Indi
a
Sing
apor
e
Braz
il
Mex
ico
Hon
g Ko
ng
Can
ada
Ger
man
y
Japa
n
Smartphone app Tablet app Mobile browser
Source: Bain/Research Now NPS surveys, 2015
0
5
10
15
20
25
Netherlands
South Korea
Canada
Japan
2012 2013 2014 2015
Mobile interactions per respondent in last quarter, 2012–2015
Global weighted averageChinaUS
Note: Data not available for Netherlands and South Korea for 2014, thus chart interpolates between 2013 and 2015.Sources: Bain/Research Now NPS surveys, 2012–2015; Bain/GMI NPS surveys, 2012 and 2013; Euromonitor
Figure 6: Consumers use apps more than mobile browsers
Figure 5: Mobile usage continues its rapid rise in most countries
When banking, consumers instinctively reach for an appAverage number of routine interactions per respondent in last quarter, 2015
Source: Bain Research
73%
64%
20
76% use banking apps every week.
62% more than once a week
Trends in Consumer Mobility ReportBank of America
32015
Constantly connected
A majority (89%) of respondents check their smartphone at least a few times a day; 36 percent say they check it constantly. Younger millennials (ages 18-24) are most likely to constantly check their mobile phones (54%).
Mobile banking mania
I am constantly checking and using my phone
About once every hour
A few times throughout the day
In the morning and evening
Hardly ever, only when I really need it
36%
21%
28%
4%
10%
54%
36%
6%
0%
2%
Consumers’ need for constant
connectivity also extends to mobile banking. Of those using a mobile banking
app, more than six in 10 (62%) access it
at least a few times a week or more; two in 10 (20%) check once a day or more.
Total respondents
Younger millennials
A few times a week42%
Once a week14%
A few times a month17%
Once a day13%
A few times a year5%
More than once a day7%
Always On
http://newsroom.bankofamerica.com/files/doc_library/additional/2015_BAC_Trends_in_Consumer_Mobility_Report.pdf
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Where people use mobile banking apps?
Mobile-Moments
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Every new mobile sensor and service, has created new interaction opportunities that are avidly used.
Camera OCR - Check Deposit
Video chat GPS Location-based services
Wallets Transactions & rewards
Push Notifications Customer messaging
Biometrics (Touch-ID) Customer authentication
Headphones Accept payments
Source: Fiserve
Millennials are the battleground
youngAmericans
24Source: Tech.pinions
25http://blog.medallia.com/customer-experience/how-a-great-customer-experience-is-really-delivered/
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27
Millennials are nearly twice as likely to switch
financial service provider
18%
10%
3%
Millennials (18-34) 35-54 55+
+80%
Source: Accenture, June 2015
Switched their primary bank last year
+600%
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Digital Services
33%18%
of Millennials switched their primary bank within the past 12 months.
stay with their bank because of good digital services.
WINNING MILLENNIAL CUSTOMERS
Source: Accenture, June 2015
Are the biggest factor for Millennials deciding to
stay or switch.
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When consumers bank via apps they are happier & generate more revenue
GoldenYears
30
Source: Accenture, 2015
Transactional rather than relationship driven
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Customer behavior and loyalty in retail banking | Bain & Company, Inc.
Page 5
0
4
8
12%24 28 32%
Online routine Mobileapp routine
Sixinteractions
in last quarter
ATM
Onlinesales/service
Mobilesales/service
Branchsales/service
Phone
Chat/video
Increasing likelihood to delight
Reliable
Percentage of US respondents, 2015
Decr
easin
g lik
elih
ood
to a
nnoy
Annoying
Delightful
Variable
Notes: Responses on a scale from -5 to 5 for “to what extent did the interaction increase or decrease your likelihood to recommend your bank?”; likelihood to delight=percentage of respondents answering ≥4; likelihood to annoy=percentage of respondents answering ≤-1Source: Bain/Research Now US NPS survey, 2015
Branchroutine
Mobilebrowserroutine
Figure 1: Mobile is consistently more likely to delight than other channels
to their primary bank. Interactions with bank staff, a bank’s product value proposition (including rates and fees), and the emotional connection (or lack thereof) to the brand all play important roles in loyalty. However, the role of the branch and frontline staff is changing rapidly. Our consumer surveys and evidence from leading bank initiatives all show that routine interactions work better and cost less when done digitally, without requir-ing a customer to visit a branch or call a contact center. Many banks have started down this path. In Germany, for example, banks have cut routine interactions at the branch by half over the past two years by migrating those interactions online and to ATMs.
Employees still play essential roles in more complex sales, service and advice, but the way they interact with customers is changing as well. They’re increasingly communicating not in a branch but via chat or video. Dutch bank ABN Amro, for instance, has been advising on and processing mortgages via webcam so that customers don’t have to physically hand over documents at a branch. As banks plug their frontline staff into the mobile hub, they can raise sales and service productivity by reaching more customers and reducing paperwork.
The writing is on the wall: Customers increasingly view having to use branches and call centers as an incon-venience for many transactions. We estimate that 50% to 70% of call volumes at a typical bank are bad or avoid-able. So although omnichannel customers still give higher loyalty scores than digital-only or branch-only customers, the branch as currently confi gured will not survive. At all cost, banks should avoid policies (such as ceilings on remote deposits) that force customers to go to a branch and stand in line.
Mobile apps delight more than other channels
Source: Bain Research
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Revenue is higher with mobile banking users. • 46% increase in POS card transactions. • 45% increase in monthly transaction from
$550 to $801.
Why? The app puts them more in control of their finances
Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions
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+46% POS
transactions
+25% ATM
transactions
+46% ACH
transactions
-32% branch
visits
-50% customer
churn
Mobile banking versus non mobile-banking customers
Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions
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The average number of product holdings, including loans, certificates of deposit, credit cards and mortgages, immediately
increased after consumers’ adoption of mobile banking.
Among banks in the study, the average unique product holdings – the number of different products held by a customer – increased by 12% in the three months after adoption of mobile banking
Average total product holdings increased by 11% post-adoption
Increased Product Holdings
Mobile banking customers at the banks in the study – not just new adopters – have higher product holdings at 2.3 products vs. 1.3 for branch-only customers. The results are similar for credit unions. Why do mobile bankers typically use more financial institution products than those who don’t use mobile banking? Consumers
who use mobile are likely more engaged with their financial institutions. As the relationship between consumers and financial institutions deepens, it enables other types of engagement. If customers have savings accounts, auto loans and mobile banking with a bank, for instance, they’re more likely to think of that
financial institution when they need mortgages or other financial services products. As consumers use more products, they turn to mobile banking to help them manage increasingly complex financial lives. This may lead them to specifically seek out mobile banking capabilities as part of an overall financial relationship.
2.3 Product
Holdings
1.3 Product
Holdings
Mobile Banking Customers
Branch-Only Customers
Deepening the Relationship
y
y
Mobile bankers typically use more bank products.
Why? Mobile users are more engaged, and have a deeper relationship with the bank, enabling more product adoption.
Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions?
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Trends in Consumer Mobility ReportBank of America
82015
Mobile check deposit on the rise
More than six in 10 (63%) respondents have used mobile check deposit, with older millennials (ages 25-34) the most likely to use it (72%). More than half (52%) of those ages 50+ have used it, up 15 percent from 2014.
Staying in control
The majority (81%) of mobile banking app users are also using banking notifications and alerts. Gen X (ages 35-49) is the most likely to receive alerts in comparison to the other demographics (91%).
Have used mobile check deposit
Older millennials
Ages 50+
63%
72%
52%
35%
35%
41%
43%
41%
27%
23%
18%
12%
41%
36%
45%
50%
41%
32%
28%
23%
20%
Total respondents Gen X
Banking Behaviors
Bill payment due
Check/payment cleared
Deposit made
Low balance
Fraud/unusual activity
Account accessed via a new device
Credit card limit
New mobile banking functionality
Banking appointment reminder
http://newsroom.bankofamerica.com/files/doc_library/additional/2015_BAC_Trends_in_Consumer_Mobility_Report.pdf
Staying in control
81% of mobile banking app users use notifications and alerts.
Trends in Consumer Mobility ReportBank of America
82015
Mobile check deposit on the rise
More than six in 10 (63%) respondents have used mobile check deposit, with older millennials (ages 25-34) the most likely to use it (72%). More than half (52%) of those ages 50+ have used it, up 15 percent from 2014.
Staying in control
The majority (81%) of mobile banking app users are also using banking notifications and alerts. Gen X (ages 35-49) is the most likely to receive alerts in comparison to the other demographics (91%).
Have used mobile check deposit
Older millennials
Ages 50+
63%
72%
52%
35%
35%
41%
43%
41%
27%
23%
18%
12%
41%
36%
45%
50%
41%
32%
28%
23%
20%
Total respondents Gen X
Banking Behaviors
Bill payment due
Check/payment cleared
Deposit made
Low balance
Fraud/unusual activity
Account accessed via a new device
Credit card limit
New mobile banking functionality
Banking appointment reminder
36
Customer behavior and loyalty in retail banking | Bain & Company, Inc.
Page 19
Figure 14: The preference for mobile broadly applies across age groups
China
UK
US
55–64
18–24
65+
45–54
35–44
55–64
45–54
35–44
25–34
18–24
65+
55–64
45–54
35–44
18–24
25–34
0% –5 –10–10 –15 –20 –25 –30
Source: Bain/Research Now NPS surveys, 2015
25–34
Channel experience score relative to leading channel, which is indexed to zero, 2015
Mobile Online ATM Branch Phone
Channel experience score relative to leading channel, which is
indexed to zero, 2015
The channel experience for mobile applies across age groups.
Customer behavior and loyalty in retail banking | Bain & Company, Inc.
Page 19
Figure 14: The preference for mobile broadly applies across age groups
China
UK
US
55–64
18–24
65+
45–54
35–44
55–64
45–54
35–44
25–34
18–24
65+
55–64
45–54
35–44
18–24
25–34
0% –5 –10–10 –15 –20 –25 –30
Source: Bain/Research Now NPS surveys, 2015
25–34
Channel experience score relative to leading channel, which is indexed to zero, 2015
Mobile Online ATM Branch Phone
Source: Bain Research
37
customers who had the best past experiences spend 140% more compared to those who
had the poorest past experience.
https://hbr.org/2014/08/the-value-of-customer-experience-quantified
where are we headed?
fiveyears
39
Internet
Mobile
Telephone
Branch
2010 2015 2020 Source: BBA
# INTERACTIONS
2015 Most customers are “mobile-first”
40
Internet
Mobile
2015 2020
2020 Most customers will be “mobile-only”
41
Mobile
2020
We’ve seen this story before
42
POSIT Are the best banks mobile apps?
43
what do you do when your customers live behind an app?
44
Don’t do this
45
A shrunken website
46
There are over 20 different products on this home page. (And a hundred more startups unbundling them).
Browse and self-serve doesn’t work well on mobile.
47
Think, and act, mobile first:
Simplify banking
Solve people’s problems
Save people time
The future of banking isn’t products it’s service experiences.
48
Personalised to the customer, reflects needs
and wants
Intuitive, simple to use, simple to act.
Speaks in human, jargon-free language
Omni-channel aware, joined up experiences
Know what the data is telling you.
Deliver at, or anticipates, the moment of need
The future of banking isn’t products it’s service experiences.
49
25% of new users will use your app once. Most 2-3 times.
Personalising onboarding transforms conversion
50
Kate was acquired via a student
campaign.
This is her first app open.
Build interactions around mobile-moments moments when your brand is most needed
52
mobile-moment
53
mobile-moment
I need an overdraft Need a €500 overdraft?
customer bank
Interact at moment of most need for the customer
54
Personalised Real-Time Interaction
Action
In-app Message
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Trends in Consumer Mobility ReportBank of America
82015
Mobile check deposit on the rise
More than six in 10 (63%) respondents have used mobile check deposit, with older millennials (ages 25-34) the most likely to use it (72%). More than half (52%) of those ages 50+ have used it, up 15 percent from 2014.
Staying in control
The majority (81%) of mobile banking app users are also using banking notifications and alerts. Gen X (ages 35-49) is the most likely to receive alerts in comparison to the other demographics (91%).
Have used mobile check deposit
Older millennials
Ages 50+
63%
72%
52%
35%
35%
41%
43%
41%
27%
23%
18%
12%
41%
36%
45%
50%
41%
32%
28%
23%
20%
Total respondents Gen X
Banking Behaviors
Bill payment due
Check/payment cleared
Deposit made
Low balance
Fraud/unusual activity
Account accessed via a new device
Credit card limit
New mobile banking functionality
Banking appointment reminder
http://newsroom.bankofamerica.com/files/doc_library/additional/2015_BAC_Trends_in_Consumer_Mobility_Report.pdf
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Make banking simpler
if it can be done on a smartphone, it will be done on a smartphone.
57
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How do you sell?
Personalised in-app campaigns have the highest conversion of ANY channel.
59
Who doesn’t have a credit card account
with us?
Swrve tells youDeliver and
complete the campaign in-
app
60
Using people’s name: Builds better brand rapport and engagement
Simple to personalise
61
Predictive: Swrve knows (through analysing passed usage) that 6:17pm is the optimal time to message Kate.
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Targeted: Kate doesn’t have a credit card with the bank. Behavioural targeting
63
Goal focused Every time you communicate, you should track against measurable goals.
Swrve automatically tracks goalsSet message objectives
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Goal focused Every time you communicate, you should track against measurable goals.
Swrve automatically tracks goalsSet message objectives
65
Tested A/B/n test the perfect message.
Variant B
Which message works best?
66
Every message is 1-touch programmable, making interaction (and conversion) easy.
Interactive In-App Message
67
An in-app message center saves every important message.
Inbox’s can drive engagement to over
80%.
68
Think, and act, mobile first:
Simplify banking
Solve people’s problems
Save people time
The future of banking isn’t products it’s service experiences.
Thank you - any questions?
Tom Farrell - VP Marketing Barry Nolan - VP Strategy