1. FINANCIAL E-MARKETING FORUM Amsterdam, September 2013 Paolo Barbesino Bank Austria Unicredit Group First VP, Internet & Mobile Banking CEE Retail CAN AN ELEPHANT FLY? How to transform a traditional organization and embrace the digital challenge

2. 1 BRANCH BANKING IS NOT A DESIRABLE EXPERIENCE 3. 2 IS THE ON-SCREEN BANKING EXPERIENCE ANY BETTER? 4. 3 5. WITHOUT A SERIOUS UPGRADE OF THE ON-SCREEN FRANCHISE BANKS WONT SUCEEED IN THE NEW DISTRIBUTION MIX Source: CEE Retail elaborations based on BCG, Oliver Wyman, Mckinsey & Co, CEE internal data - Branch - Contact center - MSF - ATM - PC - Smart phone - Tablet ATTRACT ENGAGE ACQUIRE TRANSACT X/UP-SELL RETAIN AS IS lowest relevance highest relevance ON-SCREENPERSONAL Distribution mix across personal & on-screen channels TO BE ATTRACT ENGAGE ACQUIRE TRANSACT X/UP-SELL RETAIN A HUGE DIFFERENCE REMAINS BETWEEN THE 65% OF AVERAGE DAILY INTERNET USERS AND THE 25% OF ONLINE BANKING USERS ON-SCREEN INTERACTIONS ARE SET TO GROW THEIR IMPORTANCE ALONG THE WHOLE CUSTOMER JOURNEY FROM TRANSACTIONS TO SALES AND RELATIONSHIP MANAGEMENT 6. 5 IS DESIGNING THE ON-SCREEN EXPERIENCE AN ORDINARY BUSINESS FOR BANKS? 7. INTERNET IS MUCH MORE THAN A BANKING CHANNEL Expectations about what users will find on banking websites are set by the remaining 99% Users attention is a scarce resource for banks less than of online time is spent on banking websites 1% Source: The Nielsen Company, 2011 8. DESIGNING THE NEW UX IS MUCH MORE THAN PUTTING THINGS ON A SCREEN 9. ITS MAKING AN ORGANIZATION WORK ACROSS BOUNDARIES I&C: Identity & Communication Brand Management Business Central Business + I&C Business Central Business + I&C + Legal Business Central Business Central & Local Business Central + IT Business Central + IT Business Central + IT Business Central + IT 10. FOUR ARE THE TARGETS TO ACHIEVE IN THIS ORGANIZATIONAL EFFORT 1 THINK ECOSYSTEM, NOT SILOSES 11. CUSTOMERS DO NOT THINK CHANNELS, THEY ONLY SEE SCREENS MOBILE PUBLIC WEBSITE INTERNET BANKING AS IS direct channels UX ON-SCREEEN EXPERIENCE TO BE on-screen UX 12. A SEAMLESS USER EXPERIENCE IS ABOUT WHAT THE USER DOES ACROSS DIFFERENT SCREENS 11 Contextual & shelf selling Branch 2.0 Profile management Security management Application tracking Customer profile Notification center Product management (accounts, assets & liabilities) Payments Financial coaching (PFM tools) Public Soft Login (username + password) Solid Login (OTP, Mobile TAN) Channel intelligence Targeting engine Experience streams: aligning user experience to web 2.0 best practices both within and without the industry Functional streams: rearranging & redesigning existing core banking functionalities, and providing additional intelligence to customersMOBILE FIRST 13. Mobile App for Smart phones & Tablets Internet Banking Redesign+ Earned Media Franchises Public Site Framework THE ON-SCREEN ECO-SYSTEM REQUIRES STRONG OFF-SCREEN FOUNDATIONS These initiatives are not a point of arrival, rather they represent the starting point to keep up with both competition and growing user expectations in a fast changing, technology driven environment 14. FOUR ARE THE TARGETS TO ACHIEVE IN THIS ORGANIZATIONAL EFFORT 1 THINK ECOSYSTEM, NOT SILOSES 2 DESIGN END-TO-END EXPERIENCES 15. DESIGNING THE ON-SCREEN BANKING EXPERIENCE SHOULD COVER BOTH EARNED (SOCIAL) AND OWNED MEDIA 16. THE INTERACTION BETWEEN EARNED AND OWNED MEDIA SHOULD BE ATTENTIVELY DESIGNED IF CUSTOMER SATISFACTION IS TO BE ATTAINED 17. FOUR ARE THE TARGETS TO ACHIEVE IN THIS ORGANIZATIONAL EFFORT 1 THINK ECOSYSTEM, NOT SILOSES 2 DESIGN END-TO-END EXPERIENCES 3 LET CUSTOMERS BUY, NEVER PUSH SALES 18. AN ENGAGING INTERACTION WITH RETAIL PRODUCTS IS KEY TO INCREASE CUSTOMERS SHOPPING CONFIDENCE Familiarize with product features Customize according to specific needs, exploring different product configurations Compare with other products in the same category Aquire all that is needed to make an informed decision Request additional bank staff support Make an informed decision in the due time Buy the product online or opt for offline purchase at the earliest convenience ENGAGE CONSIDER BUY 19. FOUR ARE THE TARGETS TO ACHIEVE IN THIS ORGANIZATIONAL EFFORT 1 THINK ECOSYSTEM, NOT SILOSES 2 DESIGN END-TO-END EXPERIENCES 3 LET CUSTOMERS BUY, NEVER PUSH SALES 4 DESIGN EXPERIENCES THAT USERS MAY DESIRE 20. USERS, NOT BANKERS, SHOULD FIND USING THE SERVICE DESIRABLE 19 how easy it is to interact with the service how pleasurable the interaction is at the emotional level what the service does, or offers to customer, at a functional level 21. manage exceptions, not be overwhelmed by them get rid of functionalities that appeal to bankers but customers barely use, add functionalities that users miss rearrange and prioritize functionalities according to users expectations simplify overall navigation streamline processes and reduce clicks provide additional tools to help customers manage their money create context for commercial CTAs always offer remote interaction with staff use natural language, avoid banking jargon steal as much as you can from the best on-screen experiences FINANCIALLY EMPOWERING CUSTOMERS SHOULD BE THE TARGET OF A DESIRABLE ON-SCREEN BANKING EXPERIENCE 22. 21 WHEN I GO ONLINE I DONT WANT JUST TO SEE MY ACCOUNT. I WANT TO ENTER MY BANK. 23. MOVING FROM AN OLD TO A NEW GENERATION MOBILE APP REQUIRES 24. 24 SIMPLIFYING OVERALL NAVIGATION 25. 25 ADOPTING CONSISTENT INTERACTION PATTERNS 26. AND HARMONIZING THEM 27. UNTIL EVERYTHING RUNS SMOOTHLY INCLUDING DETAILS 27 28. 28 29. FROM MENU NAVIGATION 30. TO STORYTELLING 31. FROM PRODUCT 32. TO NEED DRIVEN INFORMATION ARCHITECTURE 33. GOALS ARE A WAY TO HELP CUSTOMERS MATCH THE NEED WITH THE BEST PRODUCT 34. TRANSLATING BANKING JARGON INTO NATURAL LANGUANGE 35. FROM LOADS OF INFORMATION ON THE HOMEPAGE 36. TO IMMERSIVE PICTURES THAT SAY MORE THAN WORDS 37. FROM IMPORTANT FEATURES ONLY AVAILABLE EVERY NOW AND THEN... 38. TO CENTERS WHERE THE MOST IMPORTANT FEATURES ARE ALWAYS AT HAND 39. LONG LISTS OF PRODUCTS 40. ... TURNED INTO NATURAL LANGUAGE CALCULATORS 41. AND COMPARISON TOOLS 42. LENGHTY PRODUCT COPY 43. TURNED INTO PRECISE AND VISUALLY APPEALING DESCRIPTIONS 44. WRITTEN FOLLOWING STRICT GUIDELINES Product Tagline Benefits for the customer Indication of the best target customer Clear indication of total cost for customer No hidden small-prints Access to comparison through interactive tools (wizard, calculator, comparison table) Product sheet and Terms & Conditions available for download as branded PDF Clear CTA If caveats apply, clearly stated and very visible: If lending product, clear indication of average time to money. If application requires additional documents, To-do list for download as branded PDF. 45. USING NATURAL LANGUAGE, AND AVOIDING BANKING JARGON In lieu of > Instead of Opt > Choose Proceding > Previous Last day of preceding month > Last day of previous month Fulfill your needs > Meet your needs Purchase > Buy Country of residence > Where you live in You may be required to provide > We may ask you to provide We will assist you > We will help you Submit your application > Send your application The original investment will be returned > We will return your original investment Remittance > Payment Notify > Tell us Prevailing exchange rate > Exchange rate at the time Surrender value payable > Amount you get back Source: http://speakhuman.tumblr.com/ 46. 46 THANK YOU!