EVOLUTION OF BANKING

Recommendations

Info

THEIR FINANCIAL NEEDS, WANTS and PROBLEMS Short Term Money transmission Overdraft and short term lending Credit card Self reliance versus welfare state There is a growing realisation across society that the governments cannot afford to provide for an ageing population and that consumers MUST make provision for themselves in savings, investments and self-managed superannuation. Customers will need significant help here. Banker not a Retailer Customers want and need a trusted, two-way relationship with their bank; they don’t expect a hard sell. They expect trusted guidance, where they are known and helped by their bank. Relevant communications highlight suitable products matched to needs. Insurance – home/car Life Insurance Medium Term Lending-mortgage/loans Cash savings Critical illness cover Illness and health protection Share dealing and investments Long Term Superannuation and retirement provisioning Reverse mortgages Estate Planning Educated on life’s financial journey The cost of providing financial advice within a heavily regulated environment will further constrain what banks can provide to customers. We see advice being maintained for high net worth and wealth segments but focussing on social media style education for mass market, driving self directed solution development across the industry. Rise of the self directed, self service customer Mobile revolution As everything goes mobile, customers will expect super easy, secure capability without all the hassle of passwords and onerous authentication. Digital wallet will be a key focus in banking and payments over the next 5 years. Mobile changes the type of relationship the customer wants with their bank: higher frequency, shorter duration, personalised to them. Whilst regulation and technology change the delivery landscape, the core things customers need from their financial services provider do not change; they still want help in achieving their life goals and dreams whilst avoiding the nightmares. Access to information, including in video format online and across multiple different channels (and the integration of these), is beginning to create a more empowered, informed, ‘self-directed’ customer – not afraid to make financial decisions for themselves and who will look for reassurance on their actions through social and financial networks. How banks and other financial institutions go about providing financial advice and education over the coming years will be critical given the changing demographics of the Australian marketplace, because of the diverse needs of the population. The most significant changes will be in the group aged 65 years and over. Their numbers, and their proportion of the population, is projected to increase rapidly from 3.2 million at 30 June 2012 to between 5.7 million and 5.8 million in 2031, when this will make up almost one fifth of the Australian population 1 . Among other considerations such as health and housing services, growth in this age group has particular implications for retirement income planning 2 and the provision of and access to financial services tailored to their aspirations and needs. 6 | The Evolution of Banking and Financial Services 1 Australian Bureau of Statistics, Dec 2013. 2 Department of Treasury, 2010.
MULTI CHANNEL SERVICING Convenience • Preferred channel to service specific need, but will use all channels • Service is King • Always on / mobile connected Cost • Risk based pricing • Effort to get / best use of my energy • Not price driven • Constrained by existing debt • Value for money Choice • Give me options and I’ll decide • Don’t try to lock me into your brand, I want flexibility Customers want multi channel banking services. Face to face service is still an expectation in the Australian marketplace though the paradigm under this is this offered is shifting. For example, research from the Control • Comforted by being in control but needs to accept responsibility and move away from claim culture • Expects instantaneous gratification / fast response • Focussed on self Communication • Contact me on my terms, when relevant • Stop asking me for information you should know already / portability of my data • Networked with companies, institutions and each other through the internet and social media Australian Prudential Regulation Authority (APRA) shows a decline in the past year in Australian Deposit Taking Institutions (ADIs) offering a branch level of service but an increase in other ‘face to face’ services. At the same time, customer uptake of online and mobile banking continues to grow as these digital channels offer products and services to their customers effectively 24x7. Customers expect to get cash at midnight, pay bills from the laptop in the lounge room and check balances when they are away from home. Australian bank customers also expect fairness, transparency, accountability and reliability from their financial institutions. These expectations including in relation to the fairness of fees, are being expressed in litigation. Credit providers are under real pressure. Significantly a series of bank fee class actions for repayment of fees, including honour and dishonour fees on bank accounts, as well as over limit and late payment fees on credit cards, promise to be the largest collective legal action ever in Australia. Branch Conveniently located branches Appointments readily available Open at convenient times Enough staff to avoid lengthy queues Telephony Knowledgeable staff available 24/7 Offer call back at times that suit Free calls to Customer Services Call centres at the heart of Customer Service Digital Easy-to-use online and mobile Let me instantly move money Web / apps clear and easy to navigate Offer 24/7 access to accounts The Evolution of Banking and Financial Services | 7
Page 1 and 2: COMPETITION LOYALTY COMPREHENSIVE-R
Page 3 and 4: 01 CUSTOMER 02 REGULATORy Framework
Page 5: EXPECTATIONS OF THEIR BANK Know me
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
show all

EVOLUTION OF BANKING

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?