efma journal2013 digital d_villaseca

Interview Aurelio Montinola and Raul Dimayuga from the Bank of the Philippine Islands

Special report Making profit from the SME segment

Efma Journal No. 236 January/February 2013

THE DIGITAL BANKING ISSUE: HOW FAR WILL DIGITALISATION GO IN FINANCIAL SERVICES?

Plus: A focus on Australia and New Zealand – Roundtable on attracting and retaining customers – and much more…

JOURNAL

Going digital

issue 236 o

f the Efma Jo

urnal.

To sta

rt off the new

year w

e’re focusing

topic tha

t is undoub

a key a

f focus fo

r the vast m

rity of reta

il financia

l services org

tions a

t the mom

ent – dig

ital b

anking

Indeed

, as m

obile techno

logy b

es ubiq

uitous, a

more p

eople find

it hard

to think o

f life witho

ut the internet, custom

ers are d

n increasing

number o

ital cha

nnels so tha

t they ca

n interact w

ith their bank w

herever and

whenever they cho

ose. O

ver story o

n page 1

hlights the key trend

challeng

es in the dig

ital b

anking

scape, a

es insight into

the strateg

ies of

the most successful reta

il banks a

t the mom

In this issue we a

lso ha

ve a very interesting

table a

rticle on p

hich gathers o

n from

e of the lea

rities in financia

l services. Together, they a

ddress the to

f attra

cting a

nd reta

ining custo

mers. O

n page 4

e have a

specia

cus piece o

n Austra

n page 5

there’s a ro

rticles that lo

t the challeng

e of p

better services to

e also

have a

n interview w

ith two senio

eople fro

m the B

f the Philippine Isla

nds, a

piece o

n the future o

f cash, a

uch much m

I hope yo

u enjoy this issue a

ish you a

erful 2013.

Philip

rial B

irman, Efm

Genera

l Mana

ger, Priva

te Banking

For Efma Sa

Publish

er ��

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rs �� For Tud

or Rose:

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irecto

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ITORIA

Chairm

Philippe W

Genera

l Mana

ger, Priva

te Banking

Christia

n Casseb

ember o

f Board

llianz B

tungs- u

ertrie

Driss M

Directeur D

istributio

n Produits et M

archés

Attija

riwafa

ien De Po

nthaud

f Custo

mer Exp

erience A

Rodrig

uez-Bra

un Seg

ments D

evelopm

ent Directo

r Banco

Tobbia

s Schloem

irector, G

lobal M

arketing

munica

Deutsch

endrik K

Genera

l Mana

ger, G

Strateg

Markus D

iemayer

f Retail B

Office

Erste G

roup B

Franco

is Duchesne

Directeur Princip

al, Intellig

ence d’A

ffaires et D

istributio

tion d

s Desja

s du Q

uébec

Retail B

anking

Marketing

Divisio

Isbank

Patrick K

Marketing

Directo

Marc A

laurent

Directo

r of Pa

yments

en Laustsen

uty Hea

f Banking

Philippe C

heyssial

Directeur d

u Marketing

Clients Pa

rticuliers Socié

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Diviesh V

ithlani

petitive Intellig

ence Sw

edbank

Illustra

tions ��#��

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Efma Journal is published by Tudor Rose on behalf of Efm

Tudor Rose 8, rue B

ayen, 7

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ris, France

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ouse, 6

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N >AJ76A@E57I?G7:IE6F7J<A@7JCF;ECGI?@6AJ?<EJAC>A;A<J67KHA?>A?;7CA67;O@E5?>A<;;A@FAI?<BAEMJA;@8P<AM@AQF;A@@AC<J?><@67=7R<JA7;AJE?JAIA@@7;<:K?>E@AE5456789IIAF?7JIAE57CBA;?<@A6AJ?@CEA@JE?<6F:KE55<I<7:AJCE;@A6AJ?E5?>AF;ECGI?@E;@A;B<IA@IEJIA;JAC8S><:AABA;KI7;A>7@HAAJ?7OAJ?EAJ@G;A7IIG;7IKE5IEJ?AJ?LJE;A@FEJ@<H<:<?KI7JHA?7OAJ5E;7JKA;;E;@7JCTE;E6<@@<EJ@8UA7CA;@@>EG:C?7OA7FF;EF;<7?AF;E5A@@<EJ7:7CB<IAHA5E;A7I?<J=EJ7JK<@@GA;7<@AC>A;A<J8

Efma Journal N

ry/Feb

ruary 2

rnet b

al fin

line s

les fo

r servic

ital b

y to w

line c

ximize

line s

fficie

ary, P

line b

ost im

t way to

d it o

nel to

sell n

line s

ices lik

ave ra

, fierc

petitio

layers

justin

ess to

rnet B

rokera

rtfolio

line S

line a

l is to

, turn

it into

xperie

nce, a

xpecta

f tech

-users

xperie

r the p

ast ye

true s

uccess s

f-the-a

rt tech

y to m

IND nnovativ

Genera

Efma Journal N

o. 236

cting a

ing cu

all the info

rmatio

n they need thro

their mobile d

evices. This mea

ns new

custom

er dem

s for us a

– custom

ers expect to

nswers to

their q

uestions q

uicker, and

they want

e able to

reach b

anking

services w

hile on the m

seca: C

ers world

e are cha

matica

lly. Inform

ing, they a

re far m

atic. They w

ant to

be truly

consid

ered, a

sk for

real so

lutions to

their needs.

What a

tail fi

nancia

l serv

tions in

cting a

zuba: The key is to

cesses and

systems w

hich will

enable the rea

individ

custom

er appro

ach. W

e also

e able to

accura

tely pred

ict custo

mer exp

ectatio

ns and

viour.

It’s no lo

nger a

bout p

nket pro

duct o

fferings, b

ut about

today’s cu

rent th

zuba: Very d

ifferent! This is b

ecause o

f the chang

technolo

l environm

ent, and

due to

a shift in client need

ectatio

ns. We’ve o

bserved

huge cha

nge in client b

ehavio

ur over

recent years. Peo

t like to b

e trea

ted the sa

nymore.

Furlan: O

ur customers ha

ve radica

lly cha

their beha

viour in recent yea

rs: they have m

ore information;

they compare b

ank offers; a

all, they exp

ect a custom

er experience

simila

r to wha

t they experience w

ith reta

ilers and

telcos, both in term

s of flexib

ility and

in terms of m

ulti-channel

capabilities. They exp

ect to be a

to get in touch w

ith the bank throug

h different cha

nnels in an ea

sy way, a

they apprecia

te being

able to visit the

nch when they p

refer. Furthermore,

the crisis has m

ade their b

ehaviour

e: if they don’t find

ood offer,

or they are not sure, they d

on’t buy.

Lindell: O

ur custom

ers’ basic

needs rem

ain the sa

ut the new

environm

ent mea

ns that their

expecta

tions a

re much hig

her than

re. They want to

ble to

access

their bank w

herever and

whenever

they want, m

ixing a

atching

nnels in a w

ay tha

t suits them.

Torstend

ahl: Perha

ps the clea

rest cha

nge is tha

t our custo

mers ha

ve beco

obile.

Private custo

mers a

s well a

s entrep

reneurs are used

ccessing

The customer’s

ays rig

htIn tod

ay’s vola

tile economy, effectively a

ttracting

retaining

customers is fund

ental to

success. Lindsa

es spea

ks to five bankers to find

out about their a

ches to winning

mainta

ining a

share of the custom

er’s wallet.

THE PA

lobal hea

d of custom

ent, BBVA

Rickard

Lindell

Genera

l mana

ger, H

of segm

entation a

lue prop

osition, Nord

Furlan

d of tra

nsactiona

l prod

ucts, Intesa Sa

npaolo

“It’s no longer a

bout p

roviding

nket prod

uct offering

s, but a

bout d

elivering a

le of ded

icated services a

roducts w

hich will

make our clients’ lives ea

sier”

Krzyszto

f Czub

lior B

Krzysztof C

uty CEO

lior Bank

Mats Torstend

d of reta

il banking

delivering

undle o

icated

services a

roducts w

hich will

make o

ur clients’ lives easier.

Furlan: Fro

uisition p

of view

, the key challeng

e is to b

e able to

talk the sa

s our p

ect custom

ers. It is importa

offer ta

ilored

price p

ns and

ttractive service m

odel a

duct ra

nge, b

ut it is also

relevant

r the ranking

on the sites

where p

otentia

l custom

ers navig

to fine tune the w

nd the

tools a

potentia

l custom

er may check

in ord

er to verify w

hether the offer fits.

More tha

n that, it’s a

bout sa

tisfying

the existing custo

ase in o

rder to

genera

te a p

ositive w

Lindell: The b

asic fund

princip

les of b

anking

are cha

is the regula

tory la

t the sa

me tim

e, custom

er expecta

are hig

her than ever. W

e need to

adapt to

f this. Success today

is very much a

bout d

istributio

banking

easy fo

r custom

ers. Torstend

ahl: H

competition is

ably the b

iggest cha

llenge, w

ith so m

ifferent pla

yers on the market

today. The tra

ditiona

l wholesa

le bank

is just one of the alterna

tives and

Efma Journal N

o. 236

cting a

ing cu

are not just com

peting

in traditiona

nymore. O

ther bra

connection to other prod

uct area

ctive alterna

tives for the customers,

therefore build

ing loya

lty is even m

ore crucial tha

n earlier.

seca: O

ur business focus is

ing fina

ncial a

nd non-fina

solutions, based

on a d

eep loca

erstand

ing of custom

er’s needs a

the latest technolog

ies. The second

challeng

e is to be releva

nt for each

customer, a

ctual or p

otential, w

hether a H

I or a SM

E or a com

pany. The

organisa

tion needs to a

lign everything

in ord

er to work for a

better future for

each custom

er, both on servicing

advising

all seg

ments.

Is a fa

adviso

importa

a: It d

s on the

definitio

n of fa

ce-to-fa

ce, beca

use the tra

eaning

of it ha

. We d

ffer a vid

connectio

n with o

ur virtual b

ranch,

which ha

s been w

ell-received.

ever, there will a

lways b

e clients tha

t prefer to

visit a b

ranch; w

e’re just no

t sure wha

t the bra

nch will

look like in the future.

Furlan: The co

rrect answ

er is tha

t it dep

ends: it d

s on the

custom

er preferences a

n the sp

ecific situatio

n. The key is the ability to

serve the custom

er in a

fessiona

l way. A

lthoug

h it is a

fact tha

t many custo

mers a

pprecia

te a fa

ce-to-fa

ce adviso

ry appro

especia

lly for investm

ents, it is also

importa

nt to b

e able to

serve custo

mers a

t their pla

ce if they prefer it o

r via a

remote a

Lindell: It’s not about one or the other: it’s about the individual needs of the custom

er. Some custom

ers prefer face-to-face, som

e prefer remote. It depends

on the circumstances and on the product

the customer is looking at. M

any custom

ers can spend a long period

being happy with a rem

ote relationship, but a significant life event m

ay spur the need for a face-to-face m

eeting. To

rstendahl: W

e think that it

is importa

nt to und

erstand

different cha

nnels fulfil different

custom

er needs. O

ur vario

us cha

nnels: the bra

nch offices;

the internet bank; the telep

bank; a

ur mobile services

all co

ent each o

ther, and

mers cho

ifferent channels

ifferent needs. The p

hysical

meeting

occurs less freq

uently than

re, but is still a

very importa

f meeting

our custo

mers. A

we kno

t many custo

mers w

eet som

ebody in p

erson w

hen it co

mes to

more co

mplex a

dvice o

nt issues, such as b

uying a

use or a

n apartm

ent. Villa

seca: The key is to

serve the best w

our custo

mers, a

nd they

e when a

connect

with us. The a

nswer is a

n innova

tive m

ulti-channel a

ach: w

e offer o

ur services b

ff-line, throug

nches, and

re also

focused

on the b

est online b

anking

What is y

cting n

does p

ricing p

zuba: W

e have co

nceived severa

jects in ord

er to a

ttract new

mers. Fo

r exam

ple ‘K

ill bill’

ws custo

mers to

ills free of

e. We w

ere the first in Pola

ffer this, giving

custom

ers a 1

decrea

se in their energy, p

hone a

internet bills, a

with b

anking

insura

nce services. In additio

n to this

ve created

r sync- the first truly virtua

l bank, a

ther sm

aller initia

tives like real esta

te agencies in b

ranches. Pricing

have a

substa

ntial ro

le here – we

have to

differentia

te pricing

policies

duct a

nd services.

Furlan: W

e have d

eveloped

ecific project ca

lled Sup

erflash in ord

ct new young

customers. Follow

a holistic a

ch we’ve review

ed the

uct rang

e, chang

ed our la

joined socia

l networks, tried

new store

formats a

nd crea

specific loya

lty pla

tform for them

. We b

elieve that p

rice is im

nt, but it is not the only key

to acq

uire a new

customer: the key

factor is relia

bility a

consistent and

mless exp

erience.

Lindell: W

hen we’re ta

lking a

cting new

customers, p

rice is a

very importa

nt component, b

ut as a

tionship b

ank it’s m

ore than tha

t – w

e build

on a holistic a

ch. When

we sta

rt dea

ling w

ith a new

customer

it is genera

lly a key event – b

uying a

house or g

etting m

arried

– so we a

to provid

e added

value ra

ther than just

rices. From our p

oint of view it’s

about looking

at the w

hole offer, and

ting sim

plicity a

se of use. To

rstendahl: O

ur main fo

cus is to

strong

, long

-term rela

tionship

ith our custo

mers. W

e want to

everyday life ea

sier for them

them to

meet a

ll their financia

l need

s. We rew

lty and

ritise full service custom

ers. Of

course, a

ttractive p

rices are to

e extent im

nt when it co

mes to

cting new

custom

ers as w

ell as to

ing existing

custom

ers.Villa

seca: W

e connect w

ith co

nsumers w

e on d

ifferent levels, esp

ecially w

ith a stro

key glo

bal sp

rships. Fo

r insta

nce, in basketb

all, B

is the O

fficial B

ank fo

r the NBA

all, B

is the title sponso

the Spanish Fo

all Prem

ier League.

on the custo

mers’ need

erstand

ing, w

e offer them

the best

e of so

lutions, a

t the right p

s have a

cquire

mers, h

can th

keep th

ctually

boost th

eir lo

zuba: It’s a

bout listening

to clients’

needs, b

eing inno

vative, m

f concep

ts for new

things –

hile remem

bering

lity and

king a

n individ

Furlan: By litera

lly taking

care of them

their fam

ilies – but it is ea

sy to say

much m

ore difficult to d

o: loyalty

comes from

meeting

or exceeding

the exp

ectations in a

ny single intera

ction w

ith the bank. M

ore than tha

believe the key is a

nticipating

covering

all custom

er needs w

ith ded

icated

tools of prop

osals.

Lindell: First a

nd forem

ost you need

to secure the basics a

nd tha

t’s about

understa

customer need

delivering

t they want in a

way tha

t is ea

sy. It’s about p

roviding

advice a

making

it easily a

ble, a

dapting

here the customer is a

t a tim

e that

suits them. This, a

long w

ith price va

lue and

a relia

ble service, crea

tes trust and

therefore lea

ds to loya

lty. Torstend

ahl: There is of course m

ways of b

oosting custom

er loyalty, b

ut und

erstand

ing the custom

ers’ needs

when they occur, is one of the

most im

nt. Harsher com

petition

on the banking

market a

nd increa

openness a

nd tra

nsparency result in

tougher d

s from our custom

ers. For SEB, it is im

nt to be op

en, clea

transp

arent.

seca: O

ur goa

l is build

ing la

relationship

s with increa

singly sa

tisfied

customers. W

e focus our organisa

tion in ord

er to satisfy these need

s, using

multi-cha

nnel CRM

information a

loyalty m

otivator. A

nd, on top

of that,

we need

to deliver releva

nt experiences

across a

ll touch points.

changin

the fu

ill cu

ears to

t all. N

adays,

switching

bank is m

uch easier tha

n befo

re. The big

challeng

e for the

financia

l sector w

ensure they m

in the ‘first bank’ p

ositio

Furlan: I think w

e’ll see decrea

lty in the future – our custo

will b

e more a

ble to

evalua

te pro

ns and

offers a

ill search

ise value fo

r money so

lutions.

In ord

er to keep

our custo

mers lo

we’ll need

elight them

, care fo

r them

offer p

ersona

l solutio

ns tha

t match their need

s.Lind

ell: I don’t think there w

ill be a

e in loya

lty, but I think there

will b

e new service p

ers that w

ill co

me in o

ffering new

levels of service

in different w

ays. Fina

ncial services

tions need

to step

pace w

ith this, and

eliver the best p

le level of service to

custom

er needs.

Torstend

ahl: It is a

lways d

ifficult to

ict the future, but w

e believe tha

t the ha

mpetitio

n will co

ntinue, and

that it w

ill be even ha

rder to

lty in the future.Villa

seca: In the future, d

espite the

transfo

rmatio

ns of custo

mers a

technolo

e will keep

orking

rder to

strong

relatio

nships

with o

ur custom

ers, both o

ff-line and

online, o

ffering the b

est so

lutions a

nd crea

ting va

lue acro

untries. Und

erstand

ing the d

l revo

lution a

s a lo

yalty o

pportunity,

we need

to keep

uilding

experiences, evo

lving the rem

channels exp

eriences. At the end

the day, lo

yalty is the co

nsequence

of everything

else: the reward

custom

ers give us.

“ Success today is very m

uch about d

istribution a

banking

easy for custom

ers”Ricka

rd Lind

ell, Nord

“ The physica

l meeting

occurs less freq

uently than b

efore, but

is still a very im

nt way of

meeting

our customers”

Mats To

rstendahl, H

f retail b

anking

custom

er-focused

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