let me tell you why i’m leaving - prodevmedia.comm-leav… · a little history 4 milo daniel...

Let Me Tell You Why I’m Leaving: How Mobile Services are Driving Customer/Member Retention and AcquisitionKevin Moland, AAPDirector, Enterprise Payment Solutions Product StrategyJack Henry & Associates

1

© 2016 Jack Henry & Associates, Inc.

Let me tell you why I’m leaving…

2


Agenda

• A little history• Trending digital, going mobile• The power of digital convenience• Mobile features that delight• Experience matters• Summary

3


A little history

4

Milo DanielMoland

1858

Origin of the Species

1859

Radio1895Telephones

1876

Television1923

Computers1937

PCs1976

World WideWeb1989

MobilePhones

1973

E-mail1993

iPhone2007

Facebook2004

iPod2001

Siri2011


A little history

5

iPhone2007


A little history

6


A little history

7 An Increasingly Mobile World Part 1: The Mobile-only User,Stormhold Digital, November 2015

7 billion people

4.8 billion mobile phones

4.2 billion tooth brushes


A little history

8

Every minute, there are three times as many smartphones being

activated as there are babies being born.

An Increasingly Mobile World Part 1: The Mobile-only User,Stormhold Digital, November 2015


9

A little history

Technology is changing(and will continue to change)

the way we live.


Trending digital

10Bank branch transformation begins with culture,

CBInsight, February 2016


Trending digital

ABA Survey: Online, Mobile Banking Most Popular With Consumers, August 201611


Going mobile

12Javelin Strategy & Research: 2015 Mobile Banking, Smartphone, And Tablet

Forecast, December 2015


Trending digital

ABA Survey: More Consumers Turning To Mobile Banking, July 2015 13

MonthlyInteractionsWith Main FI

Web (7)

Mobile (3)

Other (7)

~60%


14 The Financial Brand: 8 Trends to Improved Digital Customer Retention,July 2015

Trending digital

“Virtually every customeris now a digital customer.”How?


Trending digital

The Financial Brand: Digital Banking Customer Retention Trends

Customers/Members

PartiallyDigital(80%)

TotallyDigital(20%)

15


Going mobile

16

Digital Users

Use VariousDevices

(69%)

StrictlyMobile(31%)

Mobile Payments Today: Banks Seek To Capitalize On Mobile Customers, August 2015


Going mobile

17Number of Mobile-Only Internet Users Now Exceeds Desktop-Only in the U.S.,

comScore, April 2015


Going mobile

http://www.emarketer.com/Chart/US-Internet-Users-by-Device-2014-2020-millions/18581118


Going mobile

19

Who?Over half of Facebook users access the service only on mobile,

Venture Beat, January 2016


• Millennials• Prefer mobile banking: 61%• Used it this week: 69%• Used it this month: 83%

20

Going mobile

Sixty Percent of Millennials Prefer Mobile Banking: Survey,Credit Union Times, September 2016


• The underbanked: • 70% of underbanked consumers have mobile phones and

55% of those use mobile banking.

21

Going mobile

Consumers and Mobile Financial Services 2016,Federal Reserve Bank, March 2016


• People like me!• 55+ small town white collar professional with great credit rating• Three personal checking accounts, one business checking

account, and five savings accounts• Three debit cards, four credit cards• A mortgage, a car loan, and an upcoming student loan• Two retirement/investment relationships

22

Going mobile

https://www.citizenscommunitybank.net/index.php


Going mobile

23 Consumers and Mobile Financial Services 2016, March 2016


Going mobile

http://wearesocial.com/sg/special-reports/digital-2016Mobile Payments Today/KPMG24

Why?


25

Going mobile


26

The power of digital convenience

RetailWire, Study: Self-Service Trumps 'Live' Service, November 2010http://www.retailwire.com/discussion/14870/study-self-service-trumps-live-service



27Bain & Company: The Channels that Delight or Annoy,

November 2015



28 Mobile Banking Satisfaction Drops As Digital Expectations Rise,The Financial Brand, June 2015


• 70% of those 30 and under consider mobile banking a “must have”

• More than half (58%) of those prospecting for a new FI do at least some of their research on a mobile device

29


The Financial Brand: 8 Trends to Improved Digital Customer Retention, July 2015The Financial Brand: Millennials Seduced By Big Banks, February 2015



30

5%

13%

14%

25%

26%

27%

28%

34%

0% 5% 10% 15% 20% 25% 30% 35% 40%

OTHER

NO LOCAL BRANCHES FOR OLD FI

HIGHER APR

INCENTIVE OFFER

BETTER MOBILE EXPERIENCE

I MOVED

POOR CUSTOMER SERVICE AT OLD FI

LOWER FEES AT NEW FI

Why Switchers Switched

Bank Innovation: Price Still Trumps Mobile Apps When Customers WeighSwitching Banks, March 2016



31The Financial Brand: http://thefinancialbrand.com/58261/new-checking-digital-

acquisition-strategies/, April 2016


• “Today, local banks and credit unions tout their superior customer service and attention to community causes, and consumers may say, ‘That’s nice, but I’d rather just do all my banking with whatever institution provides the best digital experience.’”

32


The Financial Brand: Responding to the New Definition of ‘Convenience’ in Banking, November 2015

What?


33

Mobile features that delight

Mobile Banking Satisfaction Drops As Digital Expectations Rise,The Financial Brand, June 2015


34

Mobile features that delight: Bill pay

6872 74 76

8286

9196

100103 105 108

3543 43 43 44

50

56 5862 64 66 68

4345 46 47 47

52

51 53 54 55 56 57

0

20

40

60

80

100

120

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Onl

ine

U.S.

Hou

seho

lds (

in M

illio

ns)

Actual Forecast© 2014 Javelin Strategy & Research

Bank online

Actual Forecast

Pay bills at FI websites

Pay bills at biller websites

(Mobile Payments Today: Banks seek to capitalize on mobile customers, August 2015)The Financial Brand: 8 Trends to Improved Digital Customer Retention, July 2015



35 Consumers Love Paying Bills With Their Smartphones, The Financial Brand, March 2015


36


JAVELIN Examines Features to Cement Gen Y's Lead in Bill Pay,February 2016


• By the way, your business customers could use a hand getting set up to take mobile payments from their own website.

37



Mobile features that delight: Remote deposit

38


Mobile features that delight: Remote deposit

39 ABA Survey: 1 in 3 Americans Use Mobile Deposit, October 2016


40

Mobile features that delight: Proximity payments



41



42

“Customers are shocked when they realize how fast mobile payments are. One tap and

they’re on their way,” said Morgan Gary, Owner and Founder of Spin Laundry Lounge. “I definitely see mobile payments taking off. It’s inevitable our society will start to move

away from cash.”

http://thenextweb.com/apple/2016/07/07/square-nfc-payments-apple-pay-tipping/


43



44

Mobile features that delight: P2P payments

www.mastercard.com/send


Mobile features that delight: P2P payments

45


Mobile features that delight: The future

46


47

Experience matters


“Customer expectations are not being shaped by peer-competitor banks. They are being shaped by Apple. They are being shaped by Google. They are being shaped by Amazon.”

- Jim Smith, EVP of Virtual Channels, Wells Fargo

48

Experience matters


49

Experience matters

1. Open Safari, navigate to

login

2. Type user ID,

hit ‘Go’

3. Accept option to get SMS code

4. Open textto view code

5. Write down or memorize

code

6. Return to bank site in

browser

8. Choose ‘Remember

this device,’ hit ‘Go’

7. Enter code, hit ‘Go’

9. Enter password, hit

‘Go’

10. Choose ‘Account

Summary’

10-step program for quitting mobile banking


Experience matters

50 Is Internet Time All About Apps? eMarketer, September 2016


Experience matters

51


52

Experience matters


53

Experience matters

Can you repeat that please?

“That may be more secure, but it doesn’t give my user the

great customer experiencethey expect from us.”


• Limited mobile banking options• No integration with financial apps• No mobile bill pay• No mobile remote deposit• No mobile P2P payments• No Apple Pay/Samsung Pay• No cool conversation-based tools

54



55



56



• Optimized mobile banking site• Apple Pay • P2P payments with Square Cash• Mobile deposit with Ingo Money• Mobile bill pay?

57

Let me tell you why I’m leaving…Let me tell you why I’m staying!


• Technology will continue to change the way we bank.• Virtually every customer is now a digital customer.• Increasingly “digital” means “mobile.”• Mobile features that delight will drive consumer

willingness to stay (or switch!)• Especially in mobile, customer experience matters.• It’s not too late—yet!

58

Summary

Questions?

Kevin Moland, AAPDirector of Product Strategy forEnterprise Payment Solutions

[email protected]

let me tell you why i’m leaving - prodevmedia.comm-leav… · a little history 4 milo daniel...

Documents