Next generation financial services Russia dec 2012

© 2012 Forrester Research, Inc. Reproduction Prohibited 1

The Next Generation Financial Services In Russia Auke D. Veenstra, Principal Analyst / Dec 2012

Making Leaders Successful

Every Day

2

We help you make better decisions in a world where

technology is radically changing your customers


Structure Follows Strategy

1) Insights into global consumers

FORRESTER CONSUMER TECHNOGRAPHICS®


How technology affects consumers' attitudes, behaviors, and motivations

Argentina

Australia

Brazil

Canada

China

France

Germany

India

Italy

Japan

Mexico

Poland

The Netherlands

Russia

South Korea

Spain

Sweden

United Kingdom

United States

+ Longest-running digital

consumer study (since 1997)

+ 330,000+ completed surveys

+ 1,400 brands

+ 300 attitudes captured

+ 6 proprietary profiles

____________________

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trended consumer insights

Custom global data

Peer collaboration

Analyst engagement

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2) Levels of Engagement



3) Research Based Consulting (outside-in)

© 2012 Forrester Research, Inc. Reproduction Prohibited

Agenda

How will Russian customers look like 3 year from now?

- State & Trends

What does this mean for Russian companies

- Age of the Customer

- 5 Challenges for 2013

Next Generation Digital Financial Services

- How can Forrester help you

Q & A


Technology matters.

But at the end of the day,

it’s all about people.


An average online Russian...

Source: Forrester Russian Technographics Online Benchmarks, Q3 2012

Base: 1,986 Online Adults age 16-55 in Russia

99% go online everyday

Spend over 18 hours online every week

94% have a

connection at home

Used Internet for around

4 years

55% has a laptop

97% use Social

networks

10% has a tablet


Younger Russians adopt Internet on par with Western Europe

Source: Forrester Technographics Benchmarks, Q2 2011 EU and RU

Base: Adults in Urban Russia, Europe

0%

20%

40%

60%

80%

100%

16 - 18years

19 - 20years

21 - 24years

25 - 29years

30 - 34years

35 - 39years

40 - 44years

45 - 49years

50 - 54years

55 - 59years

60 - 64years

65 yearsand over

PC at home - Urban Russia PC at home - EU-7

Online at least monthly- Urban Russia Online at least monthly - EU-7

“How many computers (PC/Mac/laptop/netbook/Tablet) are there in your household?”

“How often do you go online on a PC (including weekdays and weekends)?”


85%

83%

70%

34%

11%

65%

61%

37%

12%

9%

44%

13%

4%

11%

3%

2%

39%

17%

4%

Yandex

Mail.ru

Google

Rambler

Yahoo

V Kontakte

Odnoklassniki

Facebook

Narod.ru

Twitter

Youtube

Rutube

Google Player

LiveJournal

Blogger

Blogspot

Wikipedia

Google Maps

Lib.ru

Online Russians give preferences to local websites

“Which of the following websites do you visit at least monthly?”

Portals/search

Social networks

Video

Blogs

References

/information

VKontakte is the top social

networking site in Russia today it

already has 100 million users. 28

million users visit Website the

website everyday

Source: Forrester Russian Technographics Online Benchmarks, Q3 2011

Base: 2,000 Online Adults in Russia

While online banking dominates in The Netherlands, it is only used by 8% of Russians, more of whom use mobile

“Do you use the following banking channels at least monthly?”

Base: 2,355 Dutch adults age 16+; 3,181 Russian adults age 16+

(percentages may not total 100 because of rounding)

Source: European Technographics® Benchmark Survey 2012

Online

Banking

88%

Branch

7%

Mobile

Banking

14%

1%

70%

5%

12%

1%

None of these

11%

Online

Banking

8%

Branch

46%

Mobile

Banking

18%

1%

34%

1%

5%

7%

None of these

46%

2% 4%

Client-Centric Multichannel Distribution

Product-centric(push) to client-centric (pull)..

Security

Drivers

The empowered customers


People increasingly use multiple channels on a single Financial customer journey

Human assistance for

interactions that . . .

. . . are complex.

. . . happen rarely.

. . . have high emotional

involvement.

Self-service for

interactions that . . .

. . . are simple.

. . . happen often.

. . . have low emotional

involvement.

Start filling in savings

quotation online 1 Telephone the call

centre to check

specific detail 2

3 Complete quotation

and then compare

with other providers 4

Call back to check

whether the savings

deposit is backed Buy the savings

product online 5

Source: Forrester Research


The enablers….

17

Mobile Splinternet

Social Media


has

1 billion active users

accounts

has over

175 million

members has more than

200 million

active blogs

hosts more than

6 billion

images

visitors per

month, 4 billion

hours watched

per month

500 million 800 million

Social Media is mainstream

© 2010 Forrester Research, Inc. Reproduction Prohibited 19 © 2010 Forrester Research, Inc. Reproduction Prohibited

0%

10%

20%

30%

40%

50%

60%

0% 20% 40% 60% 80% 100%

Es

tim

ate

d u

se

am

on

g a

du

lts,

20

11

-20

15

Technology momentum (scale of 0% to 100%)

Mobile is the most disruptive consumer technology trend(s) from now to 2015

Loyalty

programs Social

networking

Mobile

browsing

Smartphone

apps Geo-location

Barcodes

Digital

wallets

Personal

cloud

Tablets PFM Social

gaming

Kiosks

Digital

signage

Social

commerce

Contactless

payment

NFC

Natural language Internet TV

Disruptiveness

(bigger is more

disruptive)

Financial

services

Verticals

Smart

Home

Digital

Wallets

Digital

Media

The Catalysts ….

De

vic

es

Ex

pe

rie

nc

es

Pla

tfo

rms

C

om

po

nen

ts

HA

RD

WA

RE

S

OF

TW

AR

E


As a result…

21

Consumers become always addressable

Spend shifts online

Purchase paths expand

Data becomes the new oil

Agenda


- State & Trends






Q & A


We have entered ‘The Age of The Customer’

23

Source: June 2011 “Competitive Strategy In The Age Of The Customer”


Customer obsession?

A customer-obsessed company focuses its strategy,

its energy, and its budget on processes that enhance

knowledge of and engagement with customers


A customer obsessed company…..

From

1. Traditional market

research

2. Customer service

as a cost center

3. Inefficient channel sales

4. Push advertising

To

1. Real-time customer

insights

2. Customer experience

as a differentiator

3. Agile commerce

4. Interactive content and

marketing

25

Your CHALLENGES in 2013


Challenge 1: Know Your Customer...


It pays off….

Source :http://swampland.time.com/2012/11/07

28

http://swampland.time.com/2012/11/07/inside-the-secret-world-of-quants-and-data-crunchers-who-helped-obama-win/print/




Reach and engage….


Creating customized brand ecosystems for your clients

Depth

Engagement

Reach


The new CRM is a multistage process

Data Management

Processing

Data

Customer A

Name

Phone

Twitter

FB

Opinions

Influence

Web

Transactions

Customer B

Name

Twitter

Opinions

Transactions

Customer C

Name

Phone

Twitter

FB

Opinions

Influence

Customer Data

Enterprise Data

Social Data

Dashboards Reports Consulting


Challenge 2: Always Addressable Customer


Defining the ‘Always Adressable Customer’

33

Source: Melissa Parrish, September 2012 “The Always Addressable Customer”

Frequent access

Go online at least

daily

Multiple Devices

Own at least three

connectable devices

Multiple Locations

Go online at home and/or

work, and at least one

other location


Every age group has its Always Adressable Customers

34

Base: All Dutch adults (age 16+); Source: European Technographics® Benchmark Survey, Q3 2012

3%

7%

11%

18%

29%

50%

18%

65+

55-64

45-54

35-44

25-34

16-24

Netherlands

The percentage of always addressable customers by age group


The Addressability Framework

35

Source: Melissa Parrish, September 2012 “The Always Addressable Customer”


The Three Screen World…..


Tablet usage skews toward the evening compared with PCs and smartphones

Source: comScore Custom Analysis, August 2011

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

12AM

3 AM 6 AM 9 AM 12PM

3 PM 6 PM 9 PM

PC All Tablets All Smartphones

News Category Browsing by Time of Day and Device Type


Challenge 3: Think Mobile….


Your customers and employees have given

you permission to be in their pocket.

Your customers and employees have given

you permission to be in their pocket.

What will you do with that honor?


0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016

% of European consumers owning a

device

Smartphones Tablets

Mainstreaming of smartphones and tablets

Source: Forrester Research Mobile Adoption Forecast, 2011 to 2016 (Western Europe); Forrester Research

Digital Devices Forecast, 2011 To 2016 (Europe)


Mobile phones capture a lot of consumers’ attention and time

41

Source: http://www.intomobile.com/2012/02/09/tomi-ahonen-average-users-looks-their-phone-150-times-day/; V. Bhaskaran & K. Peterson,

Transforming Customer Feedback Through Mobile, at Market Research in a Mobile World Conference, Amsterdam 2012

On average, e-mail is read 48 hours after it is sent,

while the average SMS is read in four minutes.

The average person looks at their phone

150 times a day, or once every six-and-

a-half minutes of every waking hour.

Eighty-four percent keep their device within 3

metres of them at all times.


Communicate

Create Consume

Control

Blogs

IM /

chat

SMS

Ringtones Music

Search

News

Video TV

Web browsing

Games

Maps

Health

Payment Commerce

Banking

Ticketing

Parking

Social

networks

Pictures

E-mail / MMS

Organizer Voice

Mobility: A whole new ecosystem of mobile commerce has emerged


Mobile payments may not be widely used just yet, but the interest in them presents a large opportunity

43

Base: 1,904 online Dutch adults (age 16+) who own a mobile phone; Source: European Technographics Online Financial Services Survey,

Q3 2012

“Are you interested in using, or are you already using, the following types of mobile payments?”

22%

16% 15% 15%

14%

1% 3%

1% 2%

1% 0%

5%

10%

15%

20%

25%

Unattendedmachine

payments (usingyour mobile

device to pay at aparking machineor other type of

kiosk)

Person-to-personpayments (using

your mobiledevice to pay afriend or familymember (not a

company))

In-store payments(using your

mobile deviceinstead of cash ora card in a shop)

Remote payments(using your

mobile device tobuy goods or

services on theInternet)

Payments tosmall traders(using your

mobile device topay a plumber,market stall or

other small trader)

Interested

Already using

∆ 21%

∆ 13%

∆ 14%

∆ 13% ∆ 13%


Mobile devices have unleashed a storm of innovation that will change shopping and transform payments

Offers & coupons

Product information

Loyalty & rewards

Mobile payment

Source: Forrester Research


Commonwealth Bank of Australia’s Kaching app makes it simple to make many different payments

Source: Commonwealth Bank iPhone app


T-Mobile US and Square partnership. Telia will use iZettle in its own shops.

Mobile phones as a point of sale create a new opportunity to help small traders

http://www.intomobile.com/2012/03/23/izettle-scores-deal-telia-and-now-available-its-shops-across-sweden/izettle-5/


Challenge 4: Right channeling...

High-touch Effective

Expensive

High-tech Efficient

Cheap

Routine

interactions

High-value

interactions

Right-channelling – balance technology efficiency with human effectiveness

Secure messaging

Agents and branch staff

IVR

Telephone staff

Online account access

Chat and co-browsing

ATMs

Web search & FAQs

Mobile account access

2. An upheaval on how customers engage

The Performance Of Bank X Relative To The Industry For Drivers Of Retention

October 2012 “What Drives Retention And Sales In US Banking?”


Banks are in the best position to deliver an experience that spans digital touchpoints

Support customer desire to

obtain referrals.

Obtain

recommendations

from social

networks.

Find branch

locations.

Find an advisor.

Peer

recommendations

and reviews

View product

comparisons, and

interact with a

banker.

Apply for products,

accept offers, obtain

application status, and

communicate with a

banker. Interact with financial

information, obtain live help,

and manage complex assets. Sign documents, and

obtain application

status.

Account alerts,

merchant-funded

rewards, and

digital wallet.

51

And their FAO iPad app supports the quoting activities of their independent agent channel

Source: Progressive Investor Relations Deck 06/14/12

Did you know?

Progressive sells more

insurance through

agents than online...


Opening branches won’t do the trick....

While online banking dominates in The Netherlands, it is only used by 8% of Russians, more of whom use mobile

“Do you use the following banking channels at least monthly?”

Base: 2,355 Dutch adults age 16+; 3,181 Russian adults age 16+

(percentages may not total 100 because of rounding)

Source: European Technographics® Benchmark Survey 2012

Online

Banking

88%

Branch

7%

Mobile

Banking

14%

1%

70%

5%

12%

1%

None of these

11%

Online

Banking

8%

Branch

46%

Mobile

Banking

18%

1%

34%

1%

5%

7%

None of these

46%

2% 4%


Branches are just another touchpoint


Challenge 5: Customer Experience...

© 2012, Forrester Research, Inc. Reproduction Prohibited

Three Questions Drive Forrester’s Customer experience

January 2012 “The Customer Experience Index, 2012”


Forrester literally wrote the book on how to become client-centric

59

Outside-In: The Power of Putting Customers at

the Center of Your Business

• Customer experience counts. Companies can

save billions, gain loyalty, and profit from

customer experience excellence.

• The customer experience ecosystem. The

causes of customer experience problems come

from throughout the organization.

• The six disciplines of customer experience.

Companies must master these disciplines:

strategy, customer understanding, design,

measurement, governance, and culture.

Inside-Out

Company perceptions

Company “moments that matter”

Company value

Outside-In

Customer perceptions

Customer “moments that matter”

Customer Value

Create unified customer experiences across all touchpoints

Forrester report: “Customer Experience Maturity Defined”

Customer

Understanding

Culture

Strategy

Governance Measurement

Design

Take Control: The six Disciplines of Customer Experience

Aviva Engaged Cross-functional Teams To Map Customer Journeys

CXi Leaders 22.5%

S&P 500 Index,-1.3

CXi Laggards-46.3%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Cu

mu

lati

ve t

ota

l re

turn

Five-year stock performance

Source: Watermark Consulting

Agenda


- State & Trends






Q & A


A new generation of digital financial

services is emerging that is Simple,

Ubiquitous, Personal, Empowering

and Reassuring.


Few digital financial services can match the best human agents at building customer relationships

Most digital financial services today:

Fail to recognize the customer and

create a personal and relevant

experience.

Don’t help customers understand

what to do.

Often fail to provide human help at

critical moments.

Don’t empower customers to take

action.

Don’t take advantage of the power of

community.


Simple: Make it easy for customers to achieve their goals. S

Ubiquitous: Be available wherever customers want it. U

Personal: Tailor the experience to individual needs. P

Empowering: Help customers to take action. E

Reassuring: Offer human help when and where it’s needed. R










Société Générale’s iPhone App Gives Customers A Simple View Of Their Finances

April 2012 “Trends 2012 : European Retail Banking eBusiness And Channel Strategy”


Simple ‘s communication


La Caixa’s Bar Code Scanning App Makes Bill Payments Easy









• USAA lets customers

access and manage

their accounts via its

My USAA tab in

Facebook

• Customers can add a

tab to their Facebook

page to access

account information,

services, and more

from Facebook

USAA lets customers access and manage their accounts through Facebook


Commonwealth Bank’s property guide helps home buyers get information about the homes around them









First-time visitors

Returning visitors

Source: GEICO website

GEICO offers a fully personalized home page for clients that is different to that for prospects


Backbase s’ front- and mid office solution makes segmentation possible (i.e student)









Rabobank (NL) Housing Expenses Calculator


AXA’s interactive advisor in Germany helps customers choose the right insurance for them

The interactive video is complemented with links to

calculation tools, application forms and contact

details


Israeli insurer, Migdal, built an iPhone app that gives agents easy access to sales tools and customer data

Source: Migdal iPhone application for insurance agents









State Farm lets customers to send a quote to an agent at any point in the online application process


ABN Amro specialist communicates via VC with client


Groupama’s iPhone app makes it easy to get in touch…

Contract information

Car and bike insurance quote

Home care assistance

Dental and optical insurance

Car and bike insurance claim

Other quotes

Be called back

No waiting time

Source: Groupama iPhone app


…and even tells customers how long they will have to wait

Confirm call back

Make a car or bike insurance claim

Waiting time before call back

For a better service, please get your accident report ready, your plate number or contract reference number.

Source: Groupama iPhone app









How can Forrester help you…

Our playbook framework FORRESTER’S PLAYBOOK FRAMEWORK


90

1) Insights into global consumers

FORRESTER CONSUMER TECHNOGRAPHICS®


How technology affects consumers' attitudes, behaviors, and motivations

Argentina

Australia

Brazil

Canada

China

France

Germany

India

Italy

Japan

Mexico

Poland

The Netherlands

Russia

South Korea

Spain

Sweden

United Kingdom

United States

+ Longest-running digital

consumer study (since 1997)

+ 330,000+ completed surveys

+ 1,400 brands

+ 300 attitudes captured

+ 6 proprietary profiles

____________________

= Deep, customizable,

trended consumer insights

Insights Layer

Business Lifecycle

Forrester’s M&S support

External Insights

Strategy R&D Marketing Sales Support

Internal Insights

Provide Insights

& Performance

Feedback

Provide

Requests for

Information

Product/Service Lifecycle

Marketing

Leadership & CMO

Consumer

Product Strategy

Interactive

Marketing

eBusiness and Channel

Strategy

Customer

Experience

Market

Insights

Customer

Intelligence

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Spasiba & Questions

95

Auke Douwe Veenstra - Principal Analyst

Mob: +31 651451053

Mail: [email protected]

Blog: Auke 's Blog posts

Twittter:@aukedouwe

www.forrester.com

mailto:[email protected]

http://blogs.forrester.com/auke_douwe_veenstra

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Date post:	13-Sep-2014
Category:	Economy & Finance
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Next generation financial services Russia dec 2012

Economy & Finance