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1 The Revere Group Financial Services Practice presents Trends in Interactive Banking Backbase Webinar Series, 2/24/2011
1
The Revere Group Financial Services Practice
presents
Trends in Interactive Banking
Backbase Webinar Series, 2/24/2011
2
AGENDAWhat are we going to talk about?
• 10 Key Business Drivers in Financial Services
• Critical Technologies Needed to Support the Business Drivers
• Trends in Interactive Banking
• Architectures to Support the New Trends
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Case Study ProfilesTHE DRIVERS…What are 10 key business issues in financial
services?1. Regulators will require financial services firms to concentrate on transparency and
risk management.
2. Transaction banking will have a strong resurgence and will need to offer product and delivery innovation, including social media, new interactive strategies, and mobile banking.
3. Lending Activity will continue to recover and increase.4. The handful of global banks likely to be flourishing in the future will owe much of their
success to having significantly scaled back the complexity of their operations.
5. Globalization and emerging markets will represent growth opportunities.
6. Traditional fee sources will end / change.
7. Wealth management will remain strategic, but with some shifts.8. Prioritizing Investments will remain critical as hard times hinder innovation.
9. Security will remain a primary consumer concern.
10.Non bank banking ecosystems will begin to develop.
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Case Study ProfilesTHE TECHNOLOGIES…What technologies are needed to support the
business?• Increased emphasis on Interactive
related technologies: Mobile, enhanced Web, and Social Networking.
• Improvements in data consolidation and rationalization; Information analytics and real-time information.
• Evolution of core financial services software platforms.
• Increased IT Governance.• Emphasis on improved “non-invasive”
security processes and systems• Continued Efficiency improvements in
infrastructure
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THE TRENDSWhat are leading trends in interactive banking?
• Dynamic online help / chat• More / enhanced product selector tools• More video / audio usage• Better / less risky account opening• Explosion of mobile banking, more useful
applications• Creative uses of social networking• Increased use of targeted marketing for
Cross Sell; subtle/overt and life events.• Better business analytics – web analytics
integrated with bank CRM data• Improved online PFM; Personalized Portals
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TRENDS IN INTERACTIVE BANKINGDynamic On-line Help / Chat
• Should provide Standard and context / action based• Improves conversion, increases cross-sell, and reduces abandonment
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TRENDS IN INTERACTIVE BANKINGDynamic On-line Help / Chat
• And an even better example……………….
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TRENDS IN INTERACTIVE BANKINGMore / enhanced product selector tools
• The traditional selector• Still ok for some audiences
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TRENDS IN INTERACTIVE BANKINGMore / enhanced product selector tools
• The interactive selector• Key for certain groups: Younger, less knowledgeable, etc
Small set of key differentiators
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TRENDS IN INTERACTIVE BANKINGMore / enhanced product selector tools
• The results…………….
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TRENDS IN INTERACTIVE BANKINGMore video / audio usage
• For sales or product explanation / help / CEO messages / etc• Critical for young adult market segments
Select videos based on topic
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TRENDS IN INTERACTIVE BANKINGMore video / audio usage
• Another example – using a key quote summary plus a more detailed video to appeal to multiple groups.
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TRENDS IN INTERACTIVE BANKINGBetter / less risky new account opening
• It needs to be offered at the right time and work easily, completely• It needs to include real time funding verification, as applicable.
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TRENDS IN INTERACTIVE BANKINGExplosion of mobile banking, more useful
applications• Adoption and usage increasing faster than any other channel in history• 86 million in U.S. are projected to be actively mobile banking by 2015.• Taking advantage of the unique capabilities of mobile is key….
Actionable Alerts!
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TRENDS IN INTERACTIVE BANKINGExplosion of mobile banking, more useful
applications• Another great example, with revenue generation opportunities….
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TRENDS IN INTERACTIVE BANKINGExplosion of mobile banking, more useful
applications• And a way to get the overdraft fees back…..
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TRENDS IN INTERACTIVE BANKINGExplosion of mobile banking, more useful
applications• And finally, the “cool” mobile remote deposit capture app….
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TRENDS IN INTERACTIVE BANKINGCreative uses of social networking
• Still evolving in Financial Services, but huge opportunity• One of the best ones to date……..
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TRENDS IN INTERACTIVE BANKINGCreative uses of social networking
• Seamless connection from previous banking site home page to….
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TRENDS IN INTERACTIVE BANKINGCreative uses of social networking
• Selecting the “Managing Your Money” topic brings you here…..
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TRENDS IN INTERACTIVE BANKINGIncreased use of targeted marketing for Cross Sell
• Stage 1…..Static offer for all – changes periodically, but not automatically• Same offer given to all owners of same account type
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TRENDS IN INTERACTIVE BANKINGIncreased use of targeted marketing for Cross Sell
• Stage 2…..dynamic offers personalized by general characteristics…
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TRENDS IN INTERACTIVE BANKINGIncreased use of targeted marketing for Cross Sell
• Stage 3…..personalized per person, per event, dynamically…
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TRENDS IN INTERACTIVE BANKINGImproved online PFM; Personalized Portals
• Should allow client personalization, customization, and aggregation• What does your online banking offering offer? Does it look like this?
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TRENDS IN INTERACTIVE BANKINGImproved online PFM; Personalized Portals
• And don’t forget about the new entrants……
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THE ENABLERSWhat architectures are needed to support the new
trends?• Two Key Components are needed:
• Data Integration - A consolidated Business Intelligence / Data architecture
• Provides consolidated view of a customer’s relationships• Provides integration of internal and external customer data• Provides for personalization and targeted offers
• Presentation Integration - A flexible Portal system
• Provides client and bank customization and personalization• Provides easy integration with bank systems, data, and external
content / applications
• What might that look like?
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THE ENABLERSWhat architectures are needed to support the new
trends?• A consolidated data architecture for personalization and targeted offers
Web Analytics
External Marketing Data
Bank Data
Centralized Data
Warehouse
Data Mart
Data Mart
Customer Cross-sell Recommendations
Engine(s)
CustomerData
What to recommend(products/offers)
Who to recommend
it to
• • •
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THE ENABLERSWhat architectures are needed to support the new
trends?• The data architecture at a more detailed level…….
Centralized DWH
-Dimension: Customer Information
-Dimension: Account Information
-Dimension: Balance Information
-Dimension: Transactions Information
-Dimension: Site Metrics
.
.
.
External Account Info-Account Information-Transactions
Web AnalyticsClickstream data of embedded website/web service
FI Customer Info-Demographic/Geographic -Account information
FI Internal Systems and Processes
Service Offering
Customer Acquisition
Customer Advocacy
Clickstream data of Website & Home banking
Data MartsBased on functional areas
Campaign Evaluation
Services Portal ManagerETL Engine
Application of data rules
Security Services
Aggregation Services
Personalization Services
Content Services
Integration Services
Presentation Services
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THE ENABLERSWhat architectures are needed to support the new
trends?• What about a Portal solution…….
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ABOUT REVERE
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ABOUT US
The Revere Group is the North American consulting unit of NTT DATA.
NTT DATA is a $13 billion consulting company which is part of the NTT Group - one of the largest IT\Telecom companies in the world.
OVERVIEWNTT
CommunicationsNetwork,
Managed Hosting, Data Center
Services
$8.8B
NTT EastTelephone Company
$19B
NTT DoCoMoMobile & Wireless
Solutions
$46B
NTT WestTelephone company
$18B
NTT DataIT Solutions &
Managed Services
$13B
NTT Group
$100B
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ABOUT US
Revere has a 19 year history of working with Financial Services Companies, including Banks, Securities and Capital Management firms, and Insurance companies.
We provide a wide variety of solutions in Business Transformation, Business Intelligence, Enterprise Applications and Interactive areas.
Our team consists of nearly 400 employees nationally and over 32,000 employees globally
With over twenty years of experience on average, including former CIO’s and CTO’s of Fortune 100 organizations, our Financial Services consultants are seasoned professionals in the industry.
KEY FACTS
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CREDITSPresentation includes partial images from………
• www.lendingtree.com• www.dell.com• www.liverperson.com• www.reveregroup.com• www.wellsfargo.com• www.suntrust.com• www.livesolid.com• www.ingdirect.com• www.amazon.com• www.schwab.com• www.clarimail.com• www.banksimple.com
