© Frantic 2011
NEXT LEVEL IN ONLINE BANKING: USERS TO THE CORE OF THINKING
From products & transaction-focus towards end-user-need –orientation Mobey Forum Quarterly Meeting Amsterdam Tommi Pelkonen Strategist December 1, 2011
INSIGHT
© Frantic 2011 © Frantic 2011
35 people, Helsinki-based, 15 years of experience in digital solutions
Frantic = Digital Creations
WHAT DO WE WANT TO DO? To make services that: 1) Generate business opportunities
and additional revenues for our customers
2) Make services that people enjoy to use and benefit of
Strategy
Design
Technology
Res
earc
h &
ana
lyti
cs
© Frantic 2011 © Frantic 2011
TOMMI IN BRIEF
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2010->: Strategist at Frantic 2008-2010: Business Consultant at Finpro Budapest in ICT/software business 2005-2008: Strategist at Satama Amsterdam 1999-2005: Business Consultant at Satama Helsinki 1996-1999: Research at the HSE Electronic Commerce Institute, focus: digital media service companies Born 1971, married, daughter M.Sc. (Econ.): 1999, Helsinki School of Economics, HSE, International Business, Finance & Accounting, Information Technology Lecturer and author of several publications & articles in the fields digital media, internationalisation of SMEs and service business Industrial focus: Media, Telecoms, Financial sector, B2B Commerce, Industrial manafacturing Consulting focus: Strategy, Procesess & Innovation, Digital opportunities, Business modelling
Motto: “The most robust knowledge is created in interactions, via positive conflicts”
© Frantic 2011 © Frantic 2011
BACKGROUND: THE DIGITAL REVOLUTION HAS REALISED, BUT IT STILL CONTINUES
• The Internet has changed consumer and industrial buyer behavior permanently.
PERMANENT CHANGE
• All business operations are influenced by the online channels and e-business. TOTAL IMPACT
• Customers and consumers have more power than ever in economic history
EMPOWERED CUSTOMERS
• Digital channel functions as transformation agent within organisations. Competences to run digital channel-drive business increase gradually.
CHANGE DRIVER
• Change process takes time – many business processes are not yet digitised nor utilise the online channel to the its potential. Solid success metrics are emerging.
STILL HUGE POTENTIAL
• Innovation and society fragmentation continues – globally. FRAGMENTATION
eBusiness = Business!
© Frantic 2011 © Frantic 2011
INSIGHT The next wave in digital services for banking industry customers
• BACKGROUND: From modem noises towards real time, pan-European & always-on digital banking for all
• SOME TRENDS: Innovation happening in and outside the traditional banking/financial sector
• CHALLENGE: How to keep the trust and compete in the turbulent times?
• SO WHAT: Why should you care?
© Frantic 2011
EVOLUTION STEPS IN BRIEF
Early trials with pioneers and leading companies
Internet-boosted efficiency and self-service explosion (still going on)
New innovation and service models for banking EARLY DAYS
1980-early 1990s
Internet banking era 1995->
Mobile banking era 1999->
Product offering explosion Financial “supermarkets”
Need-based Customer empowerment Microbanking
EASE OF USE
EFFICIENCY
LOYALTY
JOY OF USE GUIDANCE
TEST OPPORTUNITY DRIVERS
TEST & TRY
BREAK TO THE MASS MARKETS
OFFER EVERYTHING
LEARN TO LISTEN & BE PERSONAL
THEMES
New sources of banking innovations are emerging from user-orientation
© Frantic 2011 © Frantic 2011
KEY MOTIVES FOR BANKING AUTOMATION
• Cost savings, cost savings, cost savings… • Freedom of time, place & location • Ease of use • Plethora of new & innovative financial products,
also for consumers • Explosive growth of the financial instruments and electronic
commerce in professional, but also in private sectors
• Increased global hyper-competition and massive investments into self-service platforms
• Reduction of churn = loyalty programs
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BUT NOW: Joy of use? Relevance? Guidance of the consumers to better benefits?
© Frantic 2011 © Frantic 2011
INSIGHT The next wave in digital services for banking industry customers
• BACKGROUND: From modem noises towards real time, pan-European & always-on digital banking for all
• SOME TRENDS: Innovation happening in and outside the traditional banking/financial sector
• CHALLENGE: How to keep the trust and compete in the turbulent times?
• SO WHAT: Why should you care?
© Frantic 2011 © Frantic 2011
BANKING IS A KEY APPLICATION AREA FOR ONLINE USERS
http://www.internetworldstats.com/stats4.htm http://www.iabeurope.eu/media/43499/mcdc%20european%20overview.pdf
476 M Internet users in Europe (2011), 58% of the European population
WE LOVE OUR SELF-SERVICE BANKS – OR
DO WE?
© Frantic 2011 © Frantic 2011
CONSUMERS IN VARYING STAGES OF BEHAVIOUR
• Forrester Research asked in 2009-2010 about consumers preference to seek & research / buy online financial products • ITA: 11% - 4 % • FRA: ~20 % researched / 3 % bought • SPA: 20 % - 5 % • GER: 26% - 11 % • NL: 49 % - 21 % • UK: 43 % - 28% !
Source: Forrester Research, 2009-2010
CONSTANT GROWTH IN ONLINE USAGE FOR
FINANCIAL SERVICES
© Frantic 2011 © Frantic 2011
THE COMPARISON & BIDDING POWER IS REACHING EVER SMALLER SEGMENTS
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Letsbuyit.com – style of consumer insurance brokering with usage of aggregated power of a B2B financial institution
Comparison engines in pure eCommerce style – transparency for standard products
© Frantic 2011 © Frantic 2011
PERSONAL FINANCE MANAGEMENT TOOLS ARE EMERGING INSIDE & OUTSIDE THE BANKS
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POTENTIAL: Aggregate to an outside / other bank’s online service to get richer, clearer and more relevant information…
© Frantic 2011 © Frantic 2011
SIMPLICITY IN BANKING & BUDGET BANKING
Simple, easy to use, no-thrill, bare bones banking. Is the the dawn EasyJet era of banking?
© Frantic 2011 © Frantic 2011
GREAT NEW INNOVATIONS DOING GLOBAL GOOD
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Online & mobility-empowered banking, microfinancing and risk sharing
© Frantic 2011 © Frantic 2011
ALSO NOT-THAT-POSITIVE INNOVATIONS EMERGE (FOR THE CONSUMERS !)
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Aggressive marketing + User interface & process innovations!
Leading to consumer interest rates up 1300 % p.a.!
Case: Very short-term loans in Finland
© Frantic 2011 © Frantic 2011
INSIGHT The next wave in digital services for banking industry customers
• BACKGROUND: From modem noises towards real time, pan-European & always-on digital banking for all
• SOME TRENDS: Innovation happening in and outside the traditional banking/financial sector
• CHALLENGE: How to keep the trust and compete in the turbulent times?
• SO WHAT: Why should you care?
© Frantic 2011 © Frantic 2011
WE NEED TO RECOVER AND FIND MEANS TO RE-ESTABLISH THE CREBILITY
How about learning from the best practices of other sectors to improve the situation, at least a bit?
© Frantic 2011
THREE DIMENSION FOR FINANCIAL SECTOR CONSUMER INNOVATION
Organisations & processes
Social systems and networks
Systems & technology
Security Speed Access Usability Joy of use
Credibility Expertise Benefits Efficiency Transparency
Reputation Listening
Participation Attitudes & behaviour
FUNCTIONALITY TRUST
FAME
A never-ending wheel of opportunities and/or challenges in these turbulent times…
FINANCIAL SECTOR INNOVATION
© Frantic 2011 © Frantic 2011
BACK TO TRUST: HOW ABOUT DESIGNING SERVICES FROM A “USERS FIRST -ANGLE”?
• Who are they? • What do they want? • What do we want them to do? • How do they behave now and will behave soon • What makes them succeed (with us or without? • How can we help them in their needs? • What do the really want – what makes them
happy?
Let’s start from this angle…
© Frantic 2011 © Frantic 2011
USER-ORIENTATION TO THE CORE OF (DIGITAL) PLANNING & THINKING
3. HAPPY CUSTOMERS + GOOD BUSINESS !
2. FIND AND DESIGN SERVICES TO MATCH THESE NEEDS
Try to find the need that your organisation can service and excel in within the time, budget, technology and resourcing available
1. RESEARCH THE ACTUAL NEEDS & BEHAVIOUR OF THE USERS
Surveys and especially with qualitative interviews
SIMPLE IDEA – BUT SO RARELY EXECUTED
© Frantic 2011 © Frantic 2011
SOME METHODS FOR THE USER-ORIENTED THINKING OF (DIGITAL) SERVICES
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User-orientation calls for softer methods – do we have the belief believe in them in our number/fact-oriented financial industry?
Affinity diagramming Card sorting Contextual
inquiry
Data analysis (e.g. web analytics)
Design critique
Diary/Photo study Focus groups Heuristic
evaluations Interviews Meetings
Paper prototyping
Participatory design
Remote testing Task Analysis Usability
tests
Agile development
A/B & MVT testing
Continuous trial-learn-
develop loops …
© Frantic 2011 © Frantic 2011
QUICK HINT: HOW ABOUT FOCUSING INTO LOGICAL TIMING WHEN PEOPLE BUY FINANCIAL PRODUCTS?
This is not a marketing trick – it should become an essential part of financial service sales!
Getting a new job Retirement Marriage
Moving Layoff/loosing a job
Getting divorced/separated
Getting ill Becoming pregnant …
© Frantic 2011 © Frantic 2011
HOW ABOUT TRYING TO ANSWER THESE QUESTIONS IN THE ONLINE BANK?
STATUS: What do I have? • Give a great overview to
the situation
PERFORMANCE: How am I doing? • What is happening –
am I loosing / winning? Am I reaching my goals?
ADVICE: What should I do now? • If this is so, what are
my options?
ACTIONS: How can I move forwards? • What to do now – how
to improve this? Let’s do it…
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Online banking could be not only necessity – it could be pleasant, even a fun experience!
Dear Bank, Please offer me all of
this is a manner and a language that I can
understand.
I am not a financial expert, thus please
listen to me and help me to become better and
more empowered, thank you!
© Frantic 2011 © Frantic 2011
HOW TO EXTEND THIS TO CONTAIN ALSO THE SOCIAL DIMENSION?
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Innovation is opened up with a new angle to thinking…
Possible solutions • Testimonials & reviews • Peer-to-peer support • Live support (chat, video) • Benchmark & comparison data & tools • Closed social circle alerts, discussions,
sharing – “my advisors” • Life events – use content & relevant
supporting tools to trigger attention & usage
• Bank feed – what is happening to me & around me
• Visual appeal & analyser tools • Financial diary functions etc. • …
© Frantic 2011 © Frantic 2011
INSIGHT The next wave in digital services for banking industry customers
• BACKGROUND: From modem noises towards real time, pan-European & always-on digital banking for all
• SOME TRENDS: Innovation happening in and outside the traditional banking/financial sector
• CHALLENGE: How to keep the trust and compete in the turbulent times?
• SO WHAT: Why should you care?
© Frantic 2011 © Frantic 2011
GOOD SERVICE SELLS ITSELF; BAD SERVICE SELLS ITSELF EVEN FASTER…
Good experience = I will share it with four people
! Bad experience = I will tell it 20 of my closest friends and publish a bitter update on FB for my 223 “friends”…
"
Designed for people
Stimulates the senses
Tells really good
stories
Useful
Desirable Usable
Fitting the user needs (utility)
Easy to use (usability)
Pleasurable experience
(satisfaction & feelings)
© Frantic 2011 © Frantic 2011
BETTER SERVICE EXPERIENCE AIMS FOR A POSITIVE BUSINESS CASE - TOO!
• To existing or new clients • Via enhanced marketing and conversion improvements • Via improved retention of clientele • Via measured and monitored online operations
MORE SALES = more !
• Information clarity and lead process development • Campaigning and analytical development
MORE LEADS = more !
• Decreases in customer service costs • Decreases in sales costs
COST SAVINGS = less - !
BUSINESS CASE IS A KEY FACTOR FOR GREAT DIGITAL SERVICE PROGRAMS – AND SO OFTEN NEGLECTED!
© Frantic 2011 © Frantic 2011
OUR TARGET: BEST-IN-CLASS USER EXPERIENCE
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BEST USER
EXPERIENCE
I find things where I expect them to be
I like the brand and its visual design
It is nice to do things online
I saved a lot of time doing things online
I feel the site understands me
I get things done more efficiently than offline
I got exactly what I needed know
I am impressed by the service
I want to recommend this to my friends
Fitting the user needs (utility)
Easy to use (usability)
Pleasurable experience (satisfaction)
The banking sector has already made many of these things right . Yet, there is plenty of room for improvment
WOW!
© Frantic 2011 © Frantic 2011
DREAM: HOW DOES A LEADING ONLINE BANKING SERVICE BEHAVE & FEEL IN 2014?
© Frantic 2011 © Frantic 2011
IN 2014, THE LEADING ONLINE BANKING SERVICE …
… offers a well-packaged multi-channel customer access to reach one’s financial service provider via the preferred method of contact…
IT’S HERE!
© Frantic 2011 © Frantic 2011
IN 2014, THE LEADING ONLINE BANKING SERVICE …
… create a trusted environment into which customers want to come and share their views and plans of the their financial situation and the provider. They feel treated as respected customers…
LET ME CONFESS
© Frantic 2011 © Frantic 2011
IN 2014, THE LEADING ONLINE BANKING SERVICE …
…remembers and recognizes its users and offers personally customised advices and services and is present then when needed…
NICE TO BE BACK
© Frantic 2011 © Frantic 2011
IN 2014, THE LEADING ONLINE BANKING SERVICE …
……aggregates the consumer opinions & reviews to its offerings, advices and content dynamically…
GOOD NEWS OF
YOU
© Frantic 2011 © Frantic 2011
IN 2014, THE LEADING ONLINE BANKING SERVICE …
…increases dramatically the customer satisfaction and boost revenues with lower churn and clever cross-selling.
Outcome: Marketing budgets start shifting from acquisition to retention and loyalty programs! Quality service sells itself!
I AM HAPPY!
© Frantic 2011 © Frantic 2011
SUMMARY
• There have great potential for innovation via a new angle for online banking innovation • There is more new ideas around than ever for banking
innovations (also outside financial industry – we need to match these to our world
• We need to find new ways to service the more demanding online-empowered and social-advice & impact amplified consumers
• Mobile banking/payment is not only an access technology or transaction issue – it is the always-on bank with the best of ease of use – but only if done properly
IN BRIEF: LET’S REINVENT OUR ONLINE BANKING SERVICES!
© Frantic 2011
LET’S GO AND CREATE GREAT DIGITAL SERVICES!
Tommi Pelkonen [email protected] +358-40-50 50 821 http://www.slideshare.net/TommiP
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