Using digital to drive future retail banking profitability

The new digital tipping point Using digital to drive future retail banking profitability
The migration to digital in Australian retail banking
June 2012
The new digital tipping point Using digital to drive future retail banking profitability June 2012 1
What is the digital tipping point?
It is the point that is driven by customers’ attitude towards, and uptake of, digital banking. It is the point at which digital goes from being an adjunct to a banking proposition, to being essential. It is the point that banks go from having a digital proposition, to being a digital proposition. Most importantly we think that point is now, and it affects how banks should think about their market and investment strategies.
PwC conducted research with 1,000 Australian customers to test the impact and extent of the digital tipping point in retail banking. The respondents represented a cross-section of customers in terms of demographic attributes. Our intent was to supplement and augment the insights that Australian banks already have on their own customers, and provide an ‘outside-in’ perspective including global, good practice insights.
Our banks were among this nation’s earliest adopters of the internet and rank as four of the top 25 most visited Australian websites. Among bank customers, some 75% use digital banking. Digital channels can easily account for the majority of interactions a customer has with a bank.
Given how widespread digital banking is in the Australian market, it may feel odd to be discussing a ‘digital tipping point’. However there are still some challenges limiting Australia’s digital banking experience. There are across-the-market questions about security of mobile channels, and segment-specific issues to do with usability and uncompleted sales. Australian banks also have varied models for digital governance and levels of digital investment that can limit their digital proposition.
This report, The New Digital Tipping Point: Using Digital to Drive Future Retail Banking Profitability, seeks to better understand Australian retail banking customers’ perception of digital. A core finding is how central the digital banking experience is to many, many customers. What it highlights is how core digital is to customers. Not only does it offer a low cost and targeted interaction for banks with their customers, customers also find it the easiest channel with which to interact for many needs.
This has important implications for the way banks plan their digital investments and view their offline assets. It also means banks must address some of the key barriers for customers to switch to online banking, and to leverage the range of digital channels.
The opportunity is material. Customers fully leveraging digital have a product penetration up to 20% higher than ‘non-digital’ customers. Digital customers are also up to 1.5 times more profitable, due to a far lower cost to serve and higher retention and cross-selling.
Our Australian research on the digital tipping point in retail banking has been developed to help retail banks understand the opportunities and risks in the new digital era and to maximise their investment now and into the future.
We hope you find this report useful in growing your business.
Best,
Michelle Fitzgerald
About PwC’s Australian digital tipping point research
Which customer segments are leading the digital tipping point in Australian retail banking?
How can retail banks balance and optimise digital and multichannel investments?
How can retail banks use digital and multichannel capability to create more main bank customers?
Questions the digital tipping point research helps answer
How can retail banks accelerate customer migration to digital and multichannel banking?
How can retail banks shift from ‘having’ a digital capability, to ‘being’ a digital enterprise?
Contents
1. The digital tipping point in Australian banking – it’s already here 4
2. The case for digital – digital is key to driving future retail banking profitability 8
3. Maximising your digital investment returns – using digital to create more 13 ‘main bank’ customers
4. Your digital action plan – shift from ‘having’ digital capability to ‘being’ 18 a digital enterprise
Insights for the Australian retail banking sector
1. The digital tipping point in Australian retail banking – it’s already here
Digital is already a key part of retail banking in Australia
Source: Alexa.com June 2012
Digital is already a key part of retail banking in Australia
Banks, in stark contrast to their occasional image as staid, unchanging institutions, have often been among the quickest to adopt technology. And it has always been so. From the earliest abacus to the cloud computing of our era, banks and technology are a perfect combination.
In Australia, bank websites rank in four of the nation’s top 25 most visited while some 75 per cent of bank customers are using basic online banking features. More and more customers are adopting value-added digital features such as payment app’s and personal financial management (PFM) tools. Customers are also increasingly engaging with social media as a tool to talk about their banking experiences – both good and bad.
Top Australian Sites*
1 Google Australia
13 Blogspot.com.au
14 Amazon.com
15 Ninemsn
17 PayPal
19 Westpac Banking Corporation
25 Real Estate Australia
Digital channels easily account for the majority of direct and indirect interactions a customer has with their retail bank. And amongst all of these developments the real game-changer, mobile payments, is yet to reach its full potential.
Given how established digital banking is in the Australian market, it may appear odd to be discussing a ‘digital tipping point’. However the insights from PwC’s recent survey with Australian consumers shows that there is still a lot of untapped opportunity for our local retail banks to use digital to drive customer and business benefits.
4
6
8
10
(contact centre) 6.9
Importance of each factor measured out of 10, weighted average score across all segments
Digital banking is already more important to customers than going into a branch, using a contact centre or ATM banking.
Digital has become a priority channel.
Australian retail banking has reached a digital tipping point across all customer segments
Source: PwC Australia Digital Tipping Point customer research, May 2012
Importance of banking features to customers – digital features ranked highest
75% At least 75% of online customers use digital banking
90% At least 90% of digital banking customers perform basic banking tasks like bank transfers, bill payments and checking account balances
Online security and online capability are two of the most important features for Australian bank customers
Digital adoption is being led by high income and Generation Y customers
Digital is not just about Gen Y – in fact, high income earning customers are ahead of Gen Y in the adoption of digital banking in Australia.
High income customers ($150K+ households) matter to banks because they are high value customers.
Gen Y customers (18 to 34 year olds) matter to banks because many of them are now choosing their primary financial services provider.
‘Asset rich’ Baby Boomer customers (45+ years) are also important to banks, and represent the greatest digital migration opportunity as they significantly lag other customer segments in digital banking adoption.
Note: the customer segment-level analysis conducted in this research included: technology adoption rates; importance and satisfaction ratings of a range of banking features including digital and physical channel attributes; current digital banking activities (devices, types of interactions by product, frequency); level of effort for digital and physical channel sales and service interactions; multichannel preferences for selected simple and complex banking products, the drivers of these preferences and problems encountered in multichannel interactions; the relationship between digital banking features and customer acquisition, retention and cross-sell; willingness to pay for selected digital banking services and products; attitudes towards new banking entrants and incentives required to switch customers to digital-only banking providers.
Boomers age 45+
Compared to all other age segments:
• Lag digital banking adoption across all measures (1% take up new devices immediately and 42% in 12 months or less; 8% usually access digital banking via mobile, 2% usually via tablet; many prefer a voice / face to face interaction)
• Biggest migration opportunity for digital
Gen X age 34-44
• ‘Middle of the pack’ between Baby Boomer and Gen Y customers for most digital banking activities except tablet banking (5% take up new devices immediately and 56% in 12 months or less; 22% usually access digital banking via mobile phone, 9% via tablet)
• Significant migration opportunity for digital
Gen Y age 18-34
• Lead new technology, mobile and banking adoption (7% take up new devices immediately, and 65% in 12 months or less; 34% usually access digital banking via mobile phone, 8% usually via tablet)
• Most frequent users of digital banking (24% access digital banking on a daily basis)
• Highest users of digital banking for advice, research and shopping
High income households ($150k+)
Compared to all other segments:
• Lead new technology and tablet banking adoption (11% take up new devices immediately and 64% within 12 months or less; 12% usually access digital banking via tablet)
• Highest and most frequent users of digital banking (83% use the internet for digital banking, 32% on a daily basis)
• Highest awareness of value-added digital banking features (eg personal budgeting tools, ‘pay anyone’ capability)
Gen Y customers prefer to use digital channels across banking products (simple and complex) 1 for all stages
Digital interactions are also preferred by most retail banking customers across the product lifecycle – with selective support from traditional channels Using mortgages as an example, most customer segments prefer to use digital channels across the product lifecycle. Our research shows that this is the case for many products including credit cards and simple wealth management1.
The exception for mortgages is Baby Boomers, who prefer to go to a branch to compare product offers, apply for a mortgage, and make their first payment. They are then happy to transfer to a digital channel for ongoing transacting and servicing.
This example indicates that digital cannot be looked at as a stand-alone activity and investment in retail banking, as it has critical interdependencies with traditional channels across the customer experience and product lifecycle.
Baby Boomers have the highest reliance on branch support across both simple and complex products
Contact centres are generally seen as a support channel, rather than a preferred channel, by customers
Learn and compare
Channel first preference
Notes
1 The specific products included in PwC’s Digital Tipping Point research with Australian customers were: transaction accounts, credit cards, mortgages and wealth management (superannuation and/ or life insurance).
2 Refers to the product application stage.
2. The case for digital – digital is key to driving future retail banking profitability
Digital is key to driving future retail banking profitability.
Provided that it is well managed, digital banking can drive a lower Customer Effort Score, a higher number of customer interactions, higher average customer product holdings and profitability and lower cost to sell and serve. This is particularly important in a low credit growth environment and where competition for deposits in high.
Digital is not just a lower cost channel but is also a key lever to improve the customer experience, making it well worth the effort to invest in customers migrating to digital.
Digital presents an opportunity to retail banking because it is virtuous
Digital capability drives retail
Number of customer interactions
$

$
$
$
PwC’s research shows digital banking has the lowest Customer Effort Score compared to traditional banking channels.
The Customer Effort Score suggests the less effort customers need to make in a sales or service interaction, the more likely they are to reuse a service, giving more opportunity to connect and spend more. The lower the score, the better.
For a retail bank, this means the best way to encourage existing customers to purchase more of your products is to reduce the effort customers need to make in sales and service interactions across the product lifecycle by leveraging digital. However, given that many customers additionally require selective support from traditional channels, retail banks need to consider customer effort across all channels, not just digital.
Reducing customer effort can involve increasing levels of automation such as price decisioning and simplifying documentation such as application forms; activities which additionally deliver material cost reduction for banks.
Digital banking drives a lower Customer Effort Score (CES)
Effort required to obtain a satisfactory outcome by channel - Australian retail banking customers
Customer effort measured out of
5 Branch banking
3.2 Mobile banker
3.1 Telephone banking
3.1 Online banking
2.3
Customer effort measured out of 5 (most effort required), weighted average score across all segments. A low score indicates customers think their bank’s digital channels are more convenient.
Customer Effort Score and loyalty
The Customer Effort Score is measured by asking customers “How much effort did you personally have to put forth to handle your request?”
According to empirical research, the Customer Effort Score is a better way of predicting whether customers will buy more products and services from their bank than the Net Promoter Score (NPS) and Customer Satisfaction Index (CSAT).
Pr ed
ic ti
ve p
ow er
High
HighLow
Source: PwC Australia Digital Tipping Point customer research, May 2012; ‘Stop trying to delight your customers’ Harvard Business Review, July - August 2010; Corporate Executive Board, ‘Engineering the low-effort customer experience’, 2010
Introducing the Customer Effort Score
Digital banking drives customer interaction by providing customers with choice. For example, time and motion analysis recently conducted by one of the big four Australian banks shows that customers generally prefer to access digital banking services via:
• desktop when they first arrive at work
• mobile whilst they are commuting from work to home, or ‘on the go’
• tablet whilst they are at home during the evenings.
A similar principal applies to multichannel banking – offering customers access to traditional and digital channels gives them the freedom to bank how they want, when they want.
Digital and multichannel capability is important because the customers using these channels not only have a higher number of interactions with their bank, they are also likely to hold more products and be more profitable customers.
Digital and multichannel retail banking drives increased customer interaction, penetration and profitability
Notes 1. Multichannel defined as branch, contact centre, ATM and digital. Source: PwC client experience and research; Commonwealth Bank Technology Update, May 2012; Wells Fargo Community Banking Market Update, May 2011; Future Foundation, “Emerging Trends in Mobile Banking”, 2011
p3x number of transactions across all channels
p20% average number of products
p40% average profit contribution
p1.8x likelihood to cross-sell
Multichannel1 retail banking customers, compared to single channel customers, can deliver up to...
69.6%
47.2%
UK population Users of mobile banking
0
20%
40%
60%
80%
31.6%
18.2%
30.5%
3.1%
8.6%
Telephone Banking Going into the branch
For example, UK mobile banking customers interact more frequently across all channels % of population who use banking channel three times a week or more
Digital channels operate at materially lower costs than traditional channels such as branches and contact centres.
Digital channels enable customers to self-serve for many products. This requires many processes to be automated, including pricing, credit decisioning and fulfilment, which frees up operational staff capacity.
Customer self-service via digital channels also frees up branch and contact centre capacity so that lower numbers of staff can support higher value customer interactions, for example needs analysis and complex wealth management advice.
However banks need to ensure that capacity and capability are aligned to demand for every channel not just digital, to ensure that increased transactions volumes do not result in cost growth.
Banks also need to ensure that the customer has a positive digital experience, rather than simply being moved to a low cost digital channel.
Digital can also be a lower cost banking channel – provided that the investment is well managed
Cost to sell and serve per customer across branch, contact centre and digital channels - UK Bank
p77x The cost to sell per customer is up to 77x greater in a branch than via digital
p43x The cost to sell per customer is up to 43x greater in a contact centre than via digital
p16x The cost to serve per customer is up to 16x greater in a branch than via digital
p6x The cost to serve per customer is up to 6x greater in a contact centre than via digital
0
5
10
15
20
Service Sales
A ve
ra ge
c os
t p
er c
us to
m er
Source: PwC analysis
3. Maximising your digital investment returns – using digital to create ‘main bank’ customers
Executed well, digital turns existing customers into active users and main bank customers
Australian banks need to remove a number of obstacles to migrate more customers to digital and multichannel banking, and therefore create more main bank1 customers, by:
• ‘Pulling’ more customers to digital banking to reduce customer effort and cost to sell and serve, and
• Accelerating customer migration to mobile and tablet banking and selectively supporting multichannel interactions, to increase interactions, improve customer experience and therefore customer product penetration and profitability.
A. Not active, not main banked customers
Typically lowest average product holdings
Activate with marketing, better digital propositions and effective onboarding
B. Active, not main banked
Digital drives better average holdings
Promote to main bank through rich digital experiences and by adding value and insight to customer data
C. Not active, main banked
Main bank primacy drives good product holding levels and higher average deposits
D. Active, main banked
Best level of average product holdings from digital usage and main bank relationshipB
D
P ro
m ot
e Notes 1. Main bank is defined as the bank that a customer holds their transaction/savings account with, and that their salary is paid into.
But Australian retail banks need to remove a number of obstacles to digital banking adoption by customers
Australian customers who are not currently using digital banking cite some common barriers to adoption such as security concerns and screen size usability. In addition there are barriers unique to specific segments, for instance ‘high income’ and ‘Baby Boomer’ customers would be more inclined to use digital channels if voice or face-to-face support options better complemented digital products and services. In fact. video conferencing support was one of the most desired features across segments.
Digital strategies cannot be ‘one size fits all’, and need to be tailored at a segment level to entice more customers to the digital tipping point – and maximise return on investment for the banks.
High income and Baby Boomer customers value voice/face-to-face support to complement digital banking
High income, Gen Y and Gen X customers value special offers and price as incentives to move to digital channels
Notes 1 For mobile and tablet devices. Source: “Productivity in Australian Banking – Sailing Through the Perfect Storm”, PwC Australia, March 2012
Customers that are not currently using digital banking would consider migrating if the following were offered:
Customer segment Common needs Tailored needs
High income • Security concerns satisfied
• Screen size optimised1
• Fewer technical glitches
• Voice/face-to-face support option
Baby Boomers • Voice/face-to-face support option
There is a material gap between mobile and tablet device ownership and usage for digital banking among Australian customers.
This matters because analysis shows customers generally prefer to use different digital devices for banking throughout the day (eg desktop at work, mobile ‘on the go’, tablet at home). Customers using multiple digital devices are likely to have more banking interactions, and therefore hold more banking products and be more profitable.
Banks need to address online security and screen usability concerns for mobile and tablet devices, which are the key barriers to Australian customers using these devices to do their banking today.
This will become more important as mobile and tablets become the devices of choice for customers. This is a moving target as Australia already has one of the highest take-up rates of smartphones in the world and ownership is expected to almost double within the next three years. Tablet ownership is also expected to increase by up to 220% over this time.
Further effort is required to accelerate customer migration to mobile and tablet banking
33% of Baby Boomer customers who don’t currently use a mobile phone for banking would consider it
44% of Gen X customers who don’t currently use a mobile phone for banking would consider it
46% of Baby Boomer customers who don’t currently use a tablet for banking would consider it
64% of Gen X customers who don’t currently use a tablet for banking would consider it
The digital banking gap for Baby Boomer customers using mobile devices
Notes 1 Based on Baby Boomers customers that said they do not usually access digital banking via their mobile phone. Source: PwC Australia Digital Tipping Point customer research, May 2012; Commonwealth Bank Technology Update, May 2012; Telstra Smartphone Index; PwC Australia Entertainment & Media Outlook
Why would you not consider using a mobile phone for online banking? (Baby Boomer responses)1
Prefer using big PC rather than small screen mobile
Security risks via online banking
Likely encounter technical glitch/problem
52%
44%
21%
12%
Own a mobile device
Usually use digital banking via
mobile device
96%
61%
8%
Further effort is also required to support multichannel interactions
Multichannel capability is required to drive increased customer product penetration and profitability in retail banking.
But Australian customers cite a number of problems when using multiple retail banking channels. For instance, switching channels can drive higher effort for customers, threatening the promise of improved customer experience. Banks need to make it easier for customers to switch channels when they want.
Source: Pwc Australia Digital Tipping point customer research. May 2012
0 10 15 25 30 35
Having to repeat personal data provision
Incomplete information available about the product / service I need
Lack of awareness about my profile and / or product holdings
Not being directed to other ways to access more information
Not being able to do certain things across all channels (eg Digital, phone & branch)
Other methods do not meet my needs
31%
14%
12%
10%
9%
2%
Having to repeat personal data provision is the biggest problem customers encounter when using multiple banking channels
Most frequent problems encountered by customers when using multiple banking channels
Inconsistent access to features and services across different channels is a major annoyance
4. Your digital action plan – shift from ‘having’ digital capability to ‘being’ a digital enterprise
A digital action plan is critical to shift from ‘having’ digital capability to ‘being’ a digital enterprise
‘Having’ digital capability
Average number of products and average customer profitability
Cost to sell and serve
1. Respond to market
2. Further reduce customer effort and cost
Integrate digital and traditional channel capabilities and investment to help digitise the customer experience.
3. Measure and manage digital interactions
Increase digital sales by measuring and managing the way you do business.
4. Put digital at the heart of your strategy, culture and operating model
Integrate digital throughout your organisation so that you ‘tip’ to become a digital enterprise.
Digital action planSome Australian banks still face the dilemma of having to choose one of two available paths to them:
• to stay with their traditional banking model and ‘have’ some digital capability embedded within this; or
• embrace change and integrate digital into the heart of their strategy, culture and operating model so that they ‘tip’ to become a digital enterprise.
The victors will be the banks that set out a clear digital vision supported by a digital action plan that aligns with targeted customer and business benefits.
1. Respond to market – attract more customers online by removing known obstacles
Australian retail banks need to attract more customers to digital channels by removing known obstacles. ‘Good practice’ banks have overcome customers’ digital security and screen visibility concerns by investing in new capabilities and/or proactively marketing these capabilities to customers.
For example, most Australian banks have invested heavily in digital security capabilities and appropriate customer support, but few are actively promoting this to their customers.
Conversely, some overseas banks have also learned that ‘push’ strategies, such as increasing the cost to customers of using traditional channels, are not well received and can result in negative media attention.
Notes 1. For mobile and tablet devices Source: PwC research.
Digital securityExternal Digital securityDigital security Screen usability1
• Offer free security software to mobile and tablet banking users
• Allow customers to deactivate their debit card in real time via their mobile phone
• Use multi-factor security layers, eg:
– allow customers to register their desktop, mobile and/or tablet
– use location-based verification for mobile and/or tablet
• Focus brand campaigns on mobile and tablet security and customer support in addition to traditional authentication modes.
• Customise mobile and tablet offerings based on an appropriate subset of desktop functionality – this has been done for a range of offers beyond basic retail banking, eg:
– online trading
– Personal financial management (PFM) tools
• In one example, one-third of a bank’s online banking customers migrated onto its mobile PFM tool.
Promote your digital offering as being safe, secure and usable – good practice examples
2. Further reduce customer effort and costs by integrating channel capabilities and investments
If digital is just added as another ‘layer’ on top of existing retail banking channels, the risk is that overall customer effort and costs will increase. Australian retail banks need to selectively invest in multichannel capabilities for specific interactions, with specific products, for select customer segments.
This means digital and traditional channel roles need to be meticulously aligned and integrated over time so that customer effort can be further reduced. But this also needs to be done in a way that doesn’t add to costs, and ideally reduces costs overall.
‘Good practice’ banks are re-purposing traditional channels to provide customer education and support for digital interactions. They are also creating new social channels to provide customer advice. These activities will help accelerate customer self-service via digital, which in the long-term will free up a smaller number of traditional channels to support higher value customer interactions.
They are also investing in customer insight and analytics to identify trigger event and life event sales opportunities, and to support cross-channel leads and case management systems, which will generate new sales and create smoother customer transitions between channels, therefore further reducing customer effort. Source: PwC research
Integrate digital and multichannel capabilities and align investments – good practice examples
Leverage all channels to drive a better customer experience via digital
Invest in customer insight and analytics to make multichannel interactions easier
• Advise branch and contact centre staff of an individual customer’s history of repeat requests for simple interactions, and use staff education and FAQ tools to teach customers how to conduct those interactions online
• Use contact centre staff to offer proactive chat requests to online customers (eg explain product features and fees)
• Use contact centre staff to follow up customers’ incomplete online applications via telephone
• Create digital social channels to provide speedy, relevant answers to customers’ questions for complex products (eg tax advice for financial planning)
• Use online avatars to deliver personalised savings and investment advice for complex products.
• Use analytics to identify customer cross-sell opportunities and deliver targeted marketing offers via their most frequently used digital device at an appropriate time of day
• Use leads in real-time and allow customers to book appointments with financial planners online
• Deploy a cross-channel case management system to share data across channels and provide visibility into case loads and customer resolution times.
Source: PwC Australia Digital Tipping Point customer research, May 2012; PwC Singapore Digital Tipping Point customer research, May 2012.
3. Measure and manage the quality of digital interactions in an integrated fashion
Most banks are tracking statistics associated with their digital channels. The challenge is to integrate them into a coherent dashboard to track the quality of their digital interactions and focus investment capital.
PwC has developed an integrated dashboard which looks at external and internal factors. A benefit of this integrated, fact-based approach has been an increase in the return on digital investment. Interestingly, it often directs investment into areas beyond building new technical features and functionality, including targeted marketing or enhanced training support.
Digital security
Digital engagement • Total online population • Number of unique visitors • Number of customers • Time spend on site • Number of fans
Social media buzz • Number of snippets • Number of snippets per topic • Distribution of snippets • Number of like
Sentiment • Negative verses positive sentiment • Purchase intent
External Digital securityInternal
Behavioural economics • Number of Sales process started • Abandonment rate • Percentage of online sales • BE maturity store
User experience • User experience • Click through rates
4. Put digital at the heart of your business strategy, culture and operating model
Digital cannot be run as a stand-alone activity.
It needs to be led from the top and executed in an innovative and integrated manner across your organisation for maximum effectiveness and profitability.
Lead digital from the top and set a clear vision • A clear digital vision led by the CEO and senior
executives needed to show staff why digital is critical to the future customer experience and bank profitability, and what role it needs to play
• Senior leaders also need to ‘walk the talk’ and lead digital usage adoption.
Create a culture of digital innovation • Continuously adapt and roll out innovative
digital services
• Use innovation labs with third parties and provide incentives for employees to generate new ideas.
Integrate digital into your Target Operating Model (TOM) • Integrate digital into your business from top to
bottom, including
– corporate strategy – governance and decision making – product and channel design – processes – culture and capability.
Adopt a ‘lean’ approach to execution • Have a clear and realistic execution plan but
revisit priorities and progress frequently and adapt plans as needed
• Create an evolutionary path with frequent deliverables that drive clear customer and business benefits, rather than just a long-term project plan.
• Drive agility and relevance
customers via apps, personal financial management (PFM) tools and gamification
• Integrate and monetise social media as part of the consumer experience.
The challenge is how to shape your organisation around digital. Which way will you tip?
The digital tipping point in Australian retail banking is upon us. Digital is no longer a trade off. Digital needs appropriate relevance in the operating model and culture of a bank. The level of digital interaction, increases in the proportion of customers using digital channels and the rapid increase in social media need to be factored into governance, investment and organisation structures. A clear digital action plan is critical to shift from ‘having’ digital capability to ‘being’ a digital enterprise, in order to fully realise the promised benefits of digital banking.
‘Having’ digital capability
Average number of products and average customer profitability
Cost to sell and serve
Market context
Digital lowest CES High digital usage Trend of increase uptake
1. Respond to market
2. Further reduce customer effort and cost
Integrate digital and traditional channel capabilities and investment to help digitise the customer experience.
3. Measure and manage digital interactions
Increase digital sales by measuring and managing the way you do business.
4. Put digital at the heart of your strategy
Integrate digital into your operating model so that you ‘tip’ to become a digital enterprise.
The survey was conducted online demonstrating that all respondents have access to the internet through either a desktop,mobile or tablet device
Respondents
Note: the customer segment-level analysis conducted in this research included: technology adoption rates; importance and satisfaction ratings of a range of banking features including digital and physical channel attributes; current digital banking activities (devices, types of interactions by product, frequency); level of effort for digital and physical channel sales and service interactions; multichannel preferences for selected simple and complex banking products, the drivers of these preferences and problems encountered in multichannel interactions; the relationship between digital banking features and customer acquisition, retention and cross-sell; willingness to pay for selected digital banking services and products; attitudes towards new banking entrants and incentives required to switch customers to digital-only banking providers.
Michelle Fitzgerald Partner, Financial Services, PwC Consulting
+61 (3) 8603 2997 [email protected]
Hugh Harley Financial Services leader, PwC Australia
Shane O’Sullivan Principal, Financial Services, PwC Consulting
pwc.com.au
© 2012 PricewaterhouseCoopers. All rights reserved. In this document, “PwC” refers to PricewaterhouseCoopers a partnership formed in Australia, which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
Acknowledgements:
PwC Australia Selim Ahmed Jeremy Barton Simon Doukas Andreas Skopal Shu Shan Tan Tristan Saw
PwC UK Steve Davies Sean Mahdi
PwC USA Eileen Perrin Kanika Thakar

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Using digital to drive future retail banking profitability

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