Shona McMahon
Future of banking & customer pathways
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Macro environment: Most banks will need to embark on fundamental transformation…McKinsey 2016
• Slow growth
• Low interest rates
• Digitisation
• New regulation
Macro economic Counter factors
• Productivity
• Viability – balance sheet
• Reorientation – business
model (customer + digital)
• Future is deep
connections with the
customer
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V U C A
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Fundamental business reorientation is recommended ….
McKinsey, 2016
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We are in the Age of the Customer…. …and customers are showing a strong preference to engage with us digitally
The upside is Cx and Value …. ….with human assistance and Best Bankers the critical ‘glue’ for transformation
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Speed Ease Transparency Vocal
Queues are a major cause of detraction
Digital Sales doubled in last 2 years (Finalta, AU/NZ)
70%of Kiwis
33% increase in mobile logins
Online txns have increased by 61% overall (last 5 years)
Westpac’s channel improvements are driven by the customer
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Westpac Self serve channels: Making banking a better experience with ease, convenience & speed
• Westpac One and mobile app
• ATM
• Phone banking
• Business Online
• Customer driven channel improvements (technical)
supported by our people and customer knowledge
• Confidence
• > 55 years customer group
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• Happy to use technology if shown and educated how to do
it.
• Prefer using a printed step by step guide over videos to
learn
• Security is a major concern when it comes to depositing
money at ATM
• Unhappy because they don’t understand how to use the
self serve channels and are asked to do so with little or no
knowledge.
• Staff awareness and confidence plays a huge part
• Education – some willing to embrace, but show me!
• I am not that generation. Someone to show me (more than
once!)
Self serve customer research (> 55 years speed date): Security is a top concern
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Banking Tech: Australia and New Zealand banks among most digitally innovative in the world, Forrester, 2016
VideoANZ, BNZ, CommBank and Westpac Aust. already offer video banking services at the branch, helping customers reach a remotely located expert.
Mobile money withdrawalWestpac and CommBank in Australia use mobile banking apps, which include Touch ID authentication, to let customers get money from an ATM using their mobile phone.
Personal Financial Management innovationKiwibank offers a digital money management service called ”heaps.Westpac has partnered with US startup Moven to launch CashNav
The History of Digital Personal
Assistants
1988
The History of Personal Assistants
1997
The History of Personal Assistants
1997
The History of
Digital Personal Assistants
2011
The History of
Digital Personal Assistants
2011
Search: Movie “Artificial Intelligence” + main character
The History of VA
1988 1997 2008 2011 2012 2014 2016
April, 2016
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RBS and NatWest
and SEB banks
deploying VA for AI
driven customer
service
Web based software voice detection: To respond to simpler customers queries, quicker
“Luvo” - can understand human diction at 90%
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Other Tech: Artificial intelligence allowing rapid future evolvement
AI – set of techniques / research, codes and platforms which
are coming to life as VA and chatbots:
- computer based learning to perform tasks normally
requiring human intelligence eg: visual perception,
speech recognition, decision-making and translation
between languages.
Digital Wallets – take your cell phone not your wallet
Virtual reality – in consumer space (not banking) – we’ve
used for L&D and prototyping branch layouts
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Video: Automated Teller Assist (ATA) at ATMs is low maturity globally. Aimed at increasing Cx
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P2P lending: Varying commentaries but most say low risk to banks
P2P Payments - making payments frictionless eg pay
$4.50 for coffee .
Acorns – wealth management app
P2P Lending – attacks on bank’s lending continue
but attracting customers to unknown brands means
survival hard.
• The rise of invisible AI• Netflix
• Google Maps
• Same experience just better
• All together now
• Aggregation of data with a conversational interface
• Real time language translation
• Let’s talk feelings
• Real time sentiment analysis via video and audio
• EI ??
• Emotional intelligence – having a true conversation
• Manipulating emotions for an outcome
What’s possible