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Re-imagining Personal Banking Driving Behavioral Change via Mobile Mohamed Khalil Director of Product, Data & Partnerships [email protected]
Re-imagining Personal Banking Driving Behavioral Change via Mobile
Mohamed Khalil
Director of Product, Data & Partnerships
Technology Impacts Behaviors
DATA
Storage
Retrieval
Transmission
COMPUTATION
Processing
Analysis
Insight
DECISIONING
Context
Choices
Action
New Ways to Stay Fit
New Ways to Get Around
New Ways to Find Love
There’s Almost Always an App for That
When was the last time you couldn’t…
…find your way?
…name a song?
…check on a flight?
…get the best price?
…choose a restaurant?
…etc.
But What about Banking?
What is the behavior change we’re trying to drive?
Eliminating Coupons?
Eliminating Wallets?
“Just paid our taxi with
Paypass… and didn’t have to
pull out my wallet. Loved it!
@Ryan Caldwell
Eliminating POS?
ELIMINATING FRICTION?
What kind of change?
In a perfect world you would
• buy everything at a discount
• without a physical wallet/purse
• and without having to check out
“I really wish it were easier
for me to spend my money.”
No one. Ever.
Millennials Aren’t Impressed
And They Don’t Expect to Be
Tough financial times for Millennials in the US
Average debt $45,000
Avg. credit cards 3
Unemployment 12.4%
Live with their parents 24%
Don’t pay bills on time 42%
No cash savings 70%
So What is the real Need?
Can it work the other way?
There are currently no other bank, payment, or personal financial
management experiences out there that are positioned in this way.
What we will do…
Transform the retail bank account
into a primary financial app
customers engage with 3-5x daily
What customers will say…
“Moven makes managing my money
as easy as spending it. It helps me
make smarter spending decisions
and motivates me to save.”
Moven is Re-Imagining Personal Banking
Our Business Model
Changing the Business Model of Basic Banking
Traditional Banking Model The Moven Difference
Revenue driven by punitive fees Revenue driven by added value service
High fixed costs (branches, checks, legacy
systems) makes customers unprofitable
Mobile-centric platform (just an app)
dramatically reduces cost to serve, highly
scalable
Convenience and Rate Insight and Control
$250 or more cost per acquisition $25 or less cost per acquisition
Technological laggards with mobile and
social technologies
Mobile-first design, direct social integration,
gamification and payments focus
Saddled with legacy customer base Targeting next gen customers
Moven is Re-Thinking the Bank Business Model
The Phone as Your Account
The “Bank” Account The Mobile Account
Switch banks because
we’re better!
• Rate, Rate, Rate
• More Branches
• Lower Fees
Download the app and
spend smarter!
• Spend Smarter
• Save More
• Live Better
1 2 3
Download the app, use debit card or
contactless sticker
Get instant feedback with every purchase
Track spending across all accounts
Send money easily with social integration
4
The Phone as Your Account
Bank Partner and
BIN Sponsorship
Customer Experience and
Money Management Platform
Customer
Payment
Processor
Network
Partner
Technology
Partners
Biometrics, etc
Bill pay
Future:
How Moven Works Today
Play Games to Build Confidence …still behind the curtain for now
Go Behind the Curtain
Context
(insights)
Control
(choices)
Advice
(wisdom)
Mobile Drives New Behavioral Patterns
Action
(fulfillment)
The Old Way of Getting Around
Context:
Where Am I
Control:
What Can I Do
Advice:
What Should I Do
The New Way of Getting Around
Action
How do I do It
Understanding the Driver
“A crucial fact is that the
human brain is basically a
mammalian brain with a
larger cortex. This means
human behavior will
generally be a compromise
between… animal emotions
and instincts, and… human
deliberation and foresight.”
C. Camerer (Cal Tech), G. Loewenstein (Carnegie-Mellon), D. Prelic (MIT), 2004, Neuroeconomics: Why
economics needs brains. Scandinavian Journal of Economics, 106(3), 555-579.
“We are all just monkeys with money…”
– Tom Waits
Rational Thought
Immediate Rewards
The limbic system is dopaminergic, meaning it responds to
reward-motivated behavior and stimuli.
The Biological Basis of the Human Behavior
Short Run Self Long Run Self
Plans, prepares and optimizes for
long term utility and happiness
A series of sequential selves
all focused on the immediate
“Our theory proposes that many sorts of decision problems should
be viewed as a game between a sequence of short-run impulsive
selves and a long-run patient self.”
Drew Fudenburg (Harvard U.) and David K. Levine (Washington U.), 2006, A dual-self model of impulse control.
American Economic Review, 96(5), 1449-1476.
Dual Self Model of Decision Making
“The image that I came up with … was that I was a rider on the back of an elephant. I’m holding the reins in my hands, and by pulling one way or the other I can tell the elephant to turn, to stop, or to go. I can direct things, but only when the elephant doesn’t have desires of his own. When the elephant really wants to do something, I’m no match for him.” Dr. Jonathan Haidt, (University of Virginia), The Happiness Hypothesis, 2006, p. 4, Basic Books: New York.
Riding the Elephant
Context:
Where Am I
Control:
What Can I Do
Advice:
What Should I Do
So How Do You Design for Success?
Action:
How do I do It
CONTEXT: Where Am I?
EFFORTLESS
MEANINGFUL
•Data Collection
•Transaction Categorization
•Right Level of Insight
• Individual, Peer & Benchmark
CONTEXT: Where Am I?
AND ABOVE ALL
SIMPLE
CONTROL: What Can I Do?
PERSPECTIVE
EMOTIVE
•Short Term vs. Long Term
•Alter Perceptions of Time
•Social Commitments & Life Events
•Make Marginal Decisions Emotional
NOTE: The rider may be compelled by logic or emotion, the elephant,
however, is purely emotional. To engage the elephant, the imagery of
future goals must evoke emotion.
CONTROL: What Can I Do?
AND MUST BE
PREDICTIVE!
ADVICE: What Should I Do?
TRANSPARENT
ALIGNED
•Clarify True Cost of Action
•Highlight Tradeoffs Required
•Offers, Discounts & Rewards
• Product & Merchant Recommendations
ADVICE: What Should I Do?
AND ALWAYS
TRUSTWORTHY
ACTION: How Do I Do It?
FRICTIONLESS
SOCIAL
•Moment of Pause
•Or Instantly Actionable
•Status & Achievements
•Goals & Milestones
Engagement should accommodate
different states of social
transparency.
Pre-Commit to Fewer Temptations
Bad Behaviors
Good Behaviors
• Increase cost
• Reduce rewards
• Make harder
• Reduce costs
• Increase rewards
• Make easier
ACTION: How Do I Do It?
AND CAREFULLY
ARCHITECTED!
Mobile is the Opportunity to Differentiate
Mobile enables differentiated experiences that
• Directly address a segment’s financial concerns
• Create an eco-system of lifestyle solutions
• Establish an ongoing dialogue with the user
Mobile measures success based on users
• Feeling empowered to behave effectively
• Actually improving their finances or lifestyle
• Trusting the provider by accepting the advice
The Journey’s Just Begun
Thank You!
Mohamed Khalil
Director of Product, Data & Partnerships
@getMoven @mikhalil
