PersonalisationThe future of banking

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My job at Barclays

• Transforming insight into solutions that are predictive, personally relevant and useful

• Understand the customer better

• Personalise the customer experience based on my knowledge of the customer

Testing and Optimisation | Barclays Digital Banking | Internal Use Only

BarclaycardwasthefirstcreditcardintroducedintheUK

1966

1st CREDITCARD

Life before digital banking is pretty slow

FirstDirect,theUK’sfirsttelephoneonlybankingoperation,tookitsfirstcall

19891st TELEPHONEBANKINGSYSTEM

ThefirstCashMachinesintroducedlate1960’s

1960s1st ATM

TheBankofScotlandofferedNottinghamBuildingSocietycustomersthefirsthomebankingserviceintheUKcalled‘Homelink’

19831st HOMEBANKINGSYSTEM

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BarclaycardisfirstwithChipandPINtohelpfightfraud.20031st CHIP&PIN

Source: Intelligent Environment

RIMreleasedthefirstBlackberryemaildevices,byendof2009therewere32Msubscribers

2002 1st BLACKBERRY

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Innovation picks up pace with more services online

20071st ContactlesspaymentcardBarclaycardissuedthefirstcontactlesscardsintheUK.

SteveJobsfromApplereleasedtheoriginaliPhoneinJune2007intheUS.

20071st iPhone

Launchedsimultaneouslyonthefourmostpopularsmartphoneplatforms–Android,Apple,Nokia,BB

Lloyds TSBLaunchesmobilebanking intheUK2011

LaunchedApril24th alongsideApplewatch–theappallowscustomerstokeepcheckoftheirfinanceswherevertheyare

BarclayslaunchesfirstbankingsmartwatchappinUKforiOS

2014

2017 What’s next?

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What’s next - Delivering better customer experience Nunwood/KPMG

75% of packaged current accounts

Thebig4banksfailtodeliverexperienceexcellence Thosethatdelightcustomersstandtogain+14.2%revenuegrowth

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The size of the of the customer experience prize is large

£3.7bn

Applying the rapid growth multiplier to the Big Banks forward forecasts, gets us……..

The customer experience dividend of

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Personalisation is critical to this growth agenda

Mostworkdonebyorganisations onPersonalisation hasbeen‘insideout’• Insularview• Wewillselltoanyone• Onlyaboutexpandingthecustomerbase• Tailoringandconfiguringexperiences aroundwhatcompetitorsdo

‘Outside-in’ approachcreatesemotionalconnection

• Abouthowacompanysellsmore• Expandingthecustomerbase• Profitsaregainedthroughcost

andefficiency• Competitorsdoit,wemust

Personalisationhasthelargestimpactonadvocacyandloyalty

• Predictive• Anticipatingneeds• Usingexternalsourcesforenrichedexperiences• Customerknowledge isavaluable asset

• Respondingtoemotionalneeds• Customerloyaltyisappreciated• Profitsgainedfromsuperior

valueproposition• Weknowmorethanour

competitors

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But we find it hard to understand our customer needs

LifestylePreferences

Identity Behaviour

Identity• Imogen Bishop• 29 Acacia Avenue, Tottenham• DOB: 15/12/1989

Preferences• Opted in for marketing• Offer preferences (Fashion, Travel)

Lifestyle• Uses cashback offers • Enjoys Traveling

Behaviour• Online grocery shopping• Uses Fitbit• Logs in daily to check balances• Uses her iPhone, iPad, MacBook • Searching for new home and considering buying

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We also have other challenges around IT, Culture, Regulation and Security

PWC – Fintech Report

Thebig4banksfailtodeliverexperience

excellence

Engagingwiththerightteams

Businessneedsoftenchange

Projectsfunction insilos

Regulationdifferences– Incs vsFins

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The clock is ticking, we have new kids on the block

“Ifthesenewkidscansuccessfullycombatinertia,atscaletheycouldblowtheincumbentsoutofthewater”

WarrenMead

GlobalHeadofFintech,KPMG

Thefreelunchisover!

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The technology landscape is complex and ever evolving

Source:Gartner

Marketingtechnologyintegration

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For us to reach our aspirations, a fundamental shift is needed

PUSH PULL

Canwechange?

Whatarethehurdles?

13Testing and Optimisation | Barclays Digital Banking | Internal Use Only

Q&A