EVOLUTION OF BANKING

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INTRODUCTION AND CONTENTS This paper is an exploration of how Experian can provide relevant, meaningful support and service to the organisations which we serve as they face the current and evolving Australian financial services landscape. The industry has faced significant headwinds in recent years, as it has dealt with a challenging and changing economic environment, including the pressure of continuing low interest rates, the demands of capital adequacy rules, the rise of digital, and new challengers in the Australian market. Cost reduction and management, including efficient recognition of and delivery to customer needs has become increasingly a key focus to protect investor’s return on equity and to meet shareholder expectations. Alongside this, the Australian financial services industry is confronted with an increasingly complex privacy and credit regulatory landscape. The interaction of the different regulatory requirements do not neatly dovetail and synergising them adds to the rigours and cost of compliance. In addition, there are changes in customer behaviour and expectations as they adopt new technology at ever increasing rates. Despite the complexities, significant opportunity exists for those providers who can serve their customers well, utilising new technologies across all channels. However, the less agile and more cost constrained organisations are likely, as always, to find the next five years as challenging as the last. It’s anticipated the convergence of mobile technology, customer needs and wants, as well as new players through digital wallet and other digital device propositions being a catalyst for change across the financial services industry. This could be as far reaching as the changes in the past decade to the music industry.
01 CUSTOMER 02 REGULATORy Framework 03 NEW ENTRANTS Overview Customers are the life blood of any organisation and must be positioned at the heart of product and proposition design to ensure success. Delivering excellent customer experiences will define banking and bring additional challenges as the customers increasingly demand greater responsiveness, and personalisation of products and services. Overview The regulators, post the global financial crisis continue to deliver financial services reform. Creating an environment where customer and investor focus are paramount and education of the marketplace are also major concerns. As a result of the introduction of Comprehensive Credit Reporting (CCR), financial organisations have the opportunity and need to evolve practices of data and risk management, customer interactions and technology. Overview This is a regulatory and political environment that wants to encourage competition and choice. New entrants will find the Australian banking and financial services environment tough to get started, but as innovative entrants have demonstrated, if you can fill a gap in the market, there is space and money to be made. Delivering internal reform and innovations such as those in the digital wallet space and peer to peer lending are challenging and building market share. Focus areas • Expectations of their bank • Their financial needs, wants and problems • Multi channel servicing • Customer experience Focus areas • Shaping a new environment with Comprehensive Credit Reporting (CCR) • Expectations of regulated entities • Driving a paradigm shift for customers • Stronger process and evidence • Creating a customer culture Focus areas • Non-banks and digital wallet • Mobile payment: an opportunity and threat • New banks • Crowd funding and investment 04 TECHNOLOGY 05 <strong>BANKING</strong> <strong>EVOLUTION</strong> Overview Technology is inextricably linked with the very essence of a bank – from balances to transactions and customer information existing in a bank’s data centre. More than ever before, technology is shaping the next evolution in banking and financial services. Without state of the art management and innovative blue sky thinking, it could also constrain the pace of its progress. Online and high tech fraud is increasingly impacting the bottom line. Overview Developing differentiation within the industry and between brands will be a transformative journey. At its very heart are customers. Listening to what their needs, wants and problems are and providing help, solutions and guidance to navigate through life’s financial journey as well as the education that can enrich their conversations with their financial services providers. Focus areas • Delivering change / standardisation and APIs • Big Data • Security, fraud and biometrics • Future innovation impacting and protecting financial services Focus areas • The future • Retail – a bank for life • Wealth • SME business
Page 1: COMPETITION LOYALTY COMPREHENSIVE-R
Page 5 and 6: EXPECTATIONS OF THEIR BANK Know me
Page 7 and 8: MULTI CHANNEL SERVICING Convenience
Page 9: The way forward A move to a custome
Page 12 and 13: Responding to the global financial
Page 14 and 15: Comprehensive Credit Reporting is a
Page 16 and 17: DRIVING CUSTOMER CENTRICITY Good co
Page 18 and 19: A MODEL OF CHECKS AND BALANCES FOR
Page 20 and 21: DELIVERING GREAT CUSTOMER EXPERIENC
Page 23 and 24: 03 NEW ENTRANTS The Evolution of Ba
Page 25 and 26: MOBILE PAYMENTS: AN OPPORTUNITY AND
Page 27 and 28: NON BANKS: DIGITAL WALLET, MULTIPLE
Page 29 and 30: CROWD FUNDING AND INVESTING Crowd f
Page 31 and 32: DELIVERING CHANGE Legacy Systems Of
Page 33 and 34: AP Interfaces TO SUPPORT BANKS’ S
Page 35 and 36: HARNESSING BIG DATA TO SERVE CUSTOM
Page 37 and 38: INNOVATION IMPACTING BANKING: ID an
Page 39 and 40: EXAMPLE OF PERSONAL FINANCIAL MANAG
Page 41 and 42: MOBILE BANKING payment £ £ PAY Mo
Page 43 and 44: VIDEO INNOVATION IMPACTING BANKING
Page 45 and 46: The way forward Technology solution
Page 47 and 48: 05 BANKING EVOLUTION The Evolution
Page 49 and 50: THE FUTURE Customer Educated and em
Page 51 and 52: RETAIL A new bank proposition - hel
Page 53 and 54:
THE way forward Financial instituti
Page 56:
Experian Australia Pty Ltd Melbourn
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EVOLUTION OF BANKING

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