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Page 1: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received
Page 2: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Digital acquisition: How to drive new

business through optimization. The need of

onboarding and origination journeys.

Chris Wooldridge

Head of Client Advisory, Temenos

Page 3: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Observing

Unicorns Jumping Rainbows

or

How Analytics Will Help You

Drive New Business

By Optimising Your Bank’s

Onboarding Journeys

Page 4: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Banks analyse their competitors’

digital strategies (early 2019)

Page 5: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Let’s start with a framework for

understanding the

speed of innovation

in banks’ technology stack

Page 6: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Pace Layers

Source: Gartner - Pace-Layered Application Strategy and IT Organizational Design: How to Structure the Application Team for Success

“Even small application teams should be thinking about how they can organize to

deliver according to rates of change”

Page 7: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Pace Layers

Source: Gartner - Pace-Layered Application Strategy and IT Organizational Design: How to Structure the Application Team for Success

System of Record• Packaged software• 10+ year lifecycle

System of Differentiation• Supports unique processes• 1 to 5 year lifecycle

System of Innovation• Supports new opportunities• About a 1 year lifecycle

Page 8: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

System of Record• Packaged software• 10+ year lifecycle

System of Differentiation• Supports unique processes• 1 to 5 year lifecycle

System of Innovation• Supports new opportunities• About a 1 year lifecycle

Core BankingTemenos T24 Transact

Digital Front OfficeTemenos Infinity

Digital Customer AcquisitionTemenos Journey Manager

Pace Layers

Page 9: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Since 2016, AVOKA | TEMENOS

has published an annual

Digital Sales Report

System of Innovation• Supports new opportunities• About a 1 year lifecycle

Pace Layers

How do we measure how banks have utilized

Systems of Innovation

to optimize digital customer acquisition?

Page 10: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Since 2016, AVOKA | TEMENOS

has published an annual

Digital Sales Report

Measuring

be applied for on a mobile device

and

process is for the user

Page 11: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Measuring how many products can

be applied for on a mobile device

and how easy the application

process is for the user

It

performance compared to their

peers over a multi

Page 12: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

products can It quantifies banks’ onboarding

performance compared to their

peers over a multi-year cycle

Page 13: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

The Digital Sales Report

answers the questions

who has been doing what?

and

how well are they doing it?

Page 14: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Digital Readiness(% of Personal Products that can be applied for on mobile)

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Page 15: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Under Achievers

Legacy Lovers

Digital Promised Land

Digital Dreamers

Digital Readiness(% of Personal Products that can be applied for on mobile)

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Page 16: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

2017

Digital Readiness(% of Personal Products that can be applied for on mobile)

Ea

se o

f U

se(T

ran

sac

tio

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ffo

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re)

Under Achievers

Legacy Lovers

Digital Promised Land

Digital Dreamers

Page 17: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

2018

Digital Readiness(% of Personal Products that can be applied for on mobile)

Ea

se o

f U

se(T

ran

sac

tio

n E

ffo

rt S

co

re)

Under Achievers

Legacy Lovers

Digital Promised Land

Digital Dreamers

Page 18: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Under Achievers

Legacy Lovers

Digital Promised Land

Digital Dreamers

2019

Ea

se o

f U

se(T

ran

sac

tio

n E

ffo

rt S

co

re)

Digital Readiness(% of Personal Products that can be applied for on mobile)

Page 19: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Under Achievers

Legacy Lovers

Digital Promised Land

Digital Dreamers

2019

Ea

se o

f U

se(T

ran

sac

tio

n E

ffo

rt S

co

re)

Digital Readiness(% of Personal Products that can be applied for on mobile)

Since 2016 investment has been

directed towards lowering the effort

required to apply for new products,

especially on mobile

Page 20: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

New to Bank customer onboarding journeyThe and beyond

Page 21: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Digital sales conversion relies on customer attention

What do we understand aboutthe effect of digital processes on

customer acquisition rates?

New to Bank customer onboarding journeyThe and beyond

Page 22: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

New to Bank customer onboarding journeyThe and beyond

What do we understand aboutthe effect of digital processes on

customer acquisition rates?

Digital sales conversion relies on customer attention

Page 23: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

New to Bank customer onboarding journeyThe and beyond

For every 100 prospective customers who start a digital application journey

Page 24: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

For every 100 prospective customers who start a digital application journey

85% will abandon after entering some details…

New to Bank customer onboarding journeyThe and beyond

Page 25: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Can we quantify thebenefits of optimising

the users’ journey?

Page 26: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Mid-tier

Australian

Bank

• Replaced an existing digital personal

loan application.

• Did not change the product.

• Did not change marketing.

78%more applications were received through the digital channel.

Three month program of work…

System of Innovation• Supports new opportunities• About a 1 year lifecycle

Digital Customer Acquisition

Temenos Journey Manager

Page 27: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Fixing Digital Paper Cuts(now we know how much they hurt)

Page 28: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Platinum Credit Card

Observing a Digital Paper Cut in the Wild…

Platinum Credit Card

Customer: Tier 1 US bank

Product: Credit Card Application

Symptom: Abandonment

Value: USD$450 / customer / year

Diagnostic: Transact Insights

Page 29: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Platinum Credit Card

Observing a Digital Paper Cut in the Wild…

Diagnostic: Transact Insights

Page 30: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Platinum Credit Card

Observing a Digital Paper Cut in the Wild…

Diagnostic: Transact Insights

Cost: 11,349 × $440 = $4,993,560

Platinum Credit Card

Page 31: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Platinum Credit Card

Observing a Digital Paper Cut in the Wild…

Diagnostic: Transact Insights

Cost: 11,349 × $440 = $4,993,560

Platinum Credit Card

Platinum Credit Card

Page 32: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Observing a Digital Paper Cut in the Wild…

Diagnostic: Transact Insights

Cost: 11,349 × $440 = $4,993,560

Platinum Credit Card

Paper Cut: Poorly drafted consent clause

Page 33: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

“The imperative for every organisation [is] to make a few strategic choices about specific capability platforms on

which they intend to build what we call vectors of innovation.”

Escaping the Commodity Trap - The Future of Banking in AustraliaPrice Waterhouse Coopers, 2016

Page 34: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Customer OnboardingMinimum Required Capabilities for Success

System of Innovation• Supports new opportunities• About a 1 year lifecycle

Page 35: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Detailed CustomerAnalytics

Customer Onboarding –

Rapid, Safe, IterativeChanges to CX

Security, Compliance(CPS234) & Performance

Responsive Web,Native App &

API Ready

Omni-Channel& Multi-Customer

Save & Resume

AbandonmentManagement

Core Agnostic

Minimum RequiredCapabilities for Success

And more

Page 36: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Temenos Journey Manager is the

customer journey orchestration layer :

Capture data and engage with customer

DESIGN

Open UX

&

INTEGRATE PROCESS OPTIMIZE

Maestro–Interactive Design Environment

Open UX–Use your own JavaScript Design

Avoka Exchange + Temenos

Marketplace

Journey Manager Journey Analytics

Page 37: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

System of Record• Packaged software• 10+ year lifecycle

System of Differentiation• Supports unique processes• 1 to 5 year lifecycle

System of Innovation• Supports new opportunities• About a 1 year lifecycle

Core BankingTemenos T24 Transact

Digital Front OfficeTemenos Infinity

Digital Customer AcquisitionTemenos Journey Manager

Page 38: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received

Thank You

temenos.com

Page 39: Digital acquisition - Temenos...•Replaced an existing digital personal loan application. •Did not change the product. 78 •Did not change marketing. % more applications were received