EVOLUTION OF BANKING

Recommendations

Info

COMPREHENSIVE CREDIT REPORTING Comprehensive Credit Reporting – A New Opportunity Early adopters of Comprehensive Credit Reporting (CCR) will be looking to use their appetite and ability to leverage positive data to maximise value immediately and therefore gain competitive advantage over those who don’t. In contrast to the old model of relying on negative data to assess the credit worthiness of potential customers, today’s provider can use positive data to achieve a clearer indication of a borrower’s debt profile and their potential ability to handle credit – each key elements of customer acquisition strategies. Early Movers Grab Market Share Lenders around the world who quickly embraced positive reporting were able to cherry-pick better risk customers, leaving their competitors with adverse selection from a pool of potentially riskier accounts. Feedback from overseas bankers who have made the full transition to CCR shows that, 70 per cent saw an increase in lending, 80 percent saw a decrease in delinquency rates and 70 percent were able to widen the customer base by lending to previously under-served segments. More than 70 per cent of lenders in transitioning economies reported using CCR data to achieve increased margins. This huge increase in positive outcomes boosts activity and drive economic growth. Lenders report that a switch to CCR is also good for consumers as it increases access to credit for many, and helps ensure that borrowers receive credit products suited for their individual circumstances. Experian’s early-mover clients overseas have seized opportunities to use comprehensive data to design new finance products and programs that are more profitable. More than 70 per cent of lenders transitioning economies reported using CCR data to achieve increased margins. Global Expertise to Secure Australian Success Drawing on its global success, Experian will also position Australian lenders to benefit from the changes to credit reporting. No other credit bureau in Australia has the breadth of CCR experience around the world that Experian has achieved. Adopting CCR involves realigning business strategies and Experian is here to assist lenders to get the most out of the insight and predictive power offered by increased data. Our experts help establish timelines for integration of data reporting including technical connectivity, operational and compliance issues, and models for decision-making. 50 | The Evolution of Banking and Financial Services
RETAIL A new bank proposition – helping educate, plan and protect for life’s financial journey Australian retail banks are challenged to differentiate themselves from one another. They offer the same products via the same channels, which brings with it the danger of being seen as a utility service, leading to customer apathy over the choice of provider. Internally banks have done a phenomenal job in keeping the show on the road over the past five years in what has been life changing times. Advice Sector vs. Sales Sector Wealth is global with the advent of the global career, and advice (e.g. adviser time) and education are now as important as specific customer product offerings and other services. There is an urgency in the industry to get to grips with how personalised service and technology can co-exist to reinvent customer propositions. These propositions may include insights from social media as well as from more usual contexts from which data insights are obtained, as customers broadcast changes in their life and status. Recommendations via LinkedIn, video chat interaction, real-time questions and answers, connectivity and control are all major catchcries. Technology allows the creation of a global view of customers, their assets and liabilities and their future plans. Core channels converge Branch Telephony Online Mobile Banks are starting to introduce services that help businesses connect, network and do business with other businesses. Providers could develop new concepts to help business by making targeted marketing data and tools available to customers to help them grow their business. Business would also benefit from digital assistance that supports them locally. Services like these will be key to generating customer delight and building reputations for helpfulness, those things that will help banks and the financial services industry to grow – ‘give to get’. Social The Evolution of Banking and Financial Services | 51
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 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: THE FUTURE Customer Educated and em
Page 53 and 54: THE way forward Financial instituti
Page 56: Experian Australia Pty Ltd Melbourn

EVOLUTION OF BANKING

Create successful ePaper yourself

Delete template?

Save as template?