EVOLUTION OF BANKING

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PERSONAL FINANCIAL MANAGEMENT TOOLS – CASE STUDIES FROM OVERSEAS PFM could be the core customer interface across channels Mobile Monthly spend summary PFM Personal Data Consolidation, Insight & Action Your spending Online Category Spending (£) Mortgage / rent 800.00 Living / Travel 680.00 Credit card 200.00 Loan 365.00 Insurance 400.00 Regular savings 300.00 Life & Pensions 1200.00 Other commitments 230.00 Total 4175.00 The provision of detailed, actionable insight is transforming PFM into a service with clear mass market and high net worth appeal that has the ability to drive profitability, loyalty and other customer metrics whilst also being a key tool in serving customers across channels. The premise of PFM is that it consolidates or aggregates all the customers financial detail into one area, pulling data through multiple logins into one highly visual interface and highlights areas of potential extra focus across levels of customer sophistication from ‘you are spending more than you earn’,to ‘you have a retirement planning issue’ to ‘your portfolio is overweight in Japanese and technology stocks’. Effective use of such tools whilst being highly engaging for self service could also be fashioned to support adviser led interactions where the data is already assimilated and the focus is on the needs, wants and problems of the customer rather than the current 45 minute plus data transfer conversation that is the precursor to any personal banking, mortgage or wealth adviser meeting, which customers are bored of completing. PFM creates a completely new opportunity bringing data and tools together about the customers finances, to give a simple clear view which they can interact with to make the most of their money to drive action and monitor progress. Some overseas banks that have implemented MoneyDesktop into their digital banking solutions have reported that as many as 60% of their customers were using the service within the first year. Significant improvements have been seen in profitability (12% growth in profit per customer), average balances (9% rise in average balances), and retention rates (4% improvement in retention) among users of the service, according to MoneyDesktop’s research. An independent PFM provider linked to a price comparison capability could make a very compelling proposition for consumers to save money and obtain best in market deals. The increasing complexity of managing finances combined with a higher frequency of account switching could see personal financial management (PFM) providers take over primary customer relationships. You’re spending less than you earn each month, with £230 left over. Where the money goes Your spending Category Spending (£) Mortgage / rent 800.00 Living / Travel 680.00 Credit card 200.00 Loan 365.00 Insurance 400.00 Regular savings 300.00 Life & Pensions 1200.00 Other commitments 230.00 Total 4175.00 Needs and goals Is there anything you’d like to talk about or start planning today? Affordability validation Branch and Telephony +Add NEXT 38 | The Evolution of Banking and Financial Services
EXAMPLE <strong>OF</strong> PERSONAL FINANCIAL MANAGEMENT FROM OTHER MARKETS ReadyForZero is a US provider helping Consumers in debt giving them a way to automatically manage and reduce debt online. In the United States, Americans manage over $11 trillion in personal debt on their own. Reducing debt and building wealth are common financial goals that affect more than 144 million Americans. ReadyForZero can help Consumers better manage credit card, student loan, mortgage, Car loan or other personal debt online – automatically. Primary focus of their toolset is on Tackling Debt + Protect Credit with proven financial tools for managing debt, tracking credit, and building wealth. Step 1: Get your free ReadyForZero plan Take control of your debt with this free tool. Get a 360-degree view and make smarter decisions on your own with a complete picture of your finances. This award-winning online and mobile planning tool is free forever. Step 2: Upgrade to reach your financial goals faster (monthly fee) “I’m still over the moon that I was able to pay down all my high interest debt and I credit ReadyForZero with keeping me on track. You made me feel like I was pursuing a goal rather than barely staying ahead of ever-mounting debt. It’s a subtle difference in thought but it made a huge impact on me.” User “ReadyForZero is dedicated to the creation of financial tools that simplify your life”. Know and Track Your Credit Score with ReadyForZero PLUS Upgrade to ReadyForZero PLUS Credit to get your VantageScore 3 credit score (provided by Experian), which we’ll update monthly for you. What better way to measure your financial health and succeed financially? Automate Your Plan with ReadyForZero PLUS Boost your plan with automatic payments. Your upgraded ReadyForZero PLUS plan works for you around the clock with biweekly, monthly, and one-time payments that save you time and money. Automate all your payments to tackle debt faster, and use our deposit alerts to make payment decisions. The Evolution of Banking and Financial Services | 39
Page 1 and 2: COMPETITION LOYALTY COMPREHENSIVE-R
Page 3 and 4: 01 CUSTOMER 02 REGULATORy Framework
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: INNOVATION IMPACTING BANKING: ID an
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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