Natasha David

Editorial Director

FST Media

October 2014

The New Digital Reality for FSI

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OVERVIEW

Financial Services Industry in Australia

Key characteristics and emerging trends

Innovation bright spots

Emerging Themes

How are FSIs providing mobility and digital devices to interact with

consumers?

How are FSIs using BI and analytics to understand the customer and

generate efficiencies?

How is the consumer accessing financial services information?

Millennials– what are the expectations from FSIs?

Disrupters – how are FSIs planning to maintaining customer loyalty in the face

of the disrupters?

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BANKING 2020 – DIGITAL DIVIDE & DISRUPTORS

• Big Data – around 60% of projects in FSI intend to improve customer engagement2

• Re-imagining the interface to money – changing the way consumers think about cash

• Australian banking customers have embraced digital channels with enthusiasm

• 50% of all online transactions are through mobile platform2

• Internet of Things (IoT), biometrics and augmented reality

• Branch enhancements are being widely deployed – enhanced by digital technologies

• Payments – disrupters viewed as major threat by 34% of FSIs3

• Security, risk and compliance still plays a major part, but not in keeping new entrants out

• Banks are partnering with, or starting, incubator and innovation centres

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1 IDC Asia/Pacific Banking 2014 Top 10 Predictions: The Next Best Steps for Asia/Pacific Banks 2 FST Media webinar ̶ Building Trust in the Digital Age 3 FST Media poll at Future of Payments, 2014

INSURANCE – CUSTOMER CENTRICITY REMAINS ELUSIVE

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• The market is in consolidation mode

• Core transformation projects – require investment, yet progressing incrementally

• Disrupters are the retailers – wealth of customer insights

• Need to understand the customer are driving investments in advanced data analytics

• Industry has been historically built on “information asymmetry”

• Progressive insurers will explore disruptive innovation from state-of-the-art technologies

such as telematics and wearables

• Increased fraud analytics deployed to minimise fraudulent claims

WEALTH MANAGEMENT – BATTLE TO WIN THE NEXT GENERATION

• Meeting members’ expectations is driving investment in differentiating against

competitors amid Stronger Super reforms

• Big data and analysis for communication and engagement

• Driving member engagement with their funds

• Super and social media

• Educating Gen Y on super literacy

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THE NEXT-GEN CUSTOMER

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• Willing to part with information – new generation of “data natives”; always connected –

mainly through smartphones; socially conscious, contrary to the generalisation

• Purchase based on what they hear from their social groups

• Wearables will be the future

• 55% more likely to own wearable tech

• 67% more likely to find new tech exciting and use it as much as they can

• 51% of Millennials are likely to buy a fitness band

• They are 2 x more likely than adults 35+ to use these if paid for by insurance

organisations

• More comfortable with tech brands than financial brands

• Apple – 59%

• Amazon – 57%

• Google – 53%

• Microsoft – 51%

• Nike – 42%

• Target – 35%

• Facebook – 31%

Source: PWC The Wearable Future

FST MEDIA – YOUR TRUSTED INDUSTRY PARTNER

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– Customised research

– World-class conferences

– Tailored, segmented eDMs

– Digital assets (videos, webinars)

– Content creation (whitepapers, etc)

– eNewsletters and website advertising

THANK YOU

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For more information, contact Natasha David on

natashad@fst.net.au