Why Financial EmpowermentWhy Financial EmpowermentIs the Killer Strategy FinancialIs the Killer Strategy FinancialInstitutions Are Looking ForInstitutions Are Looking For

Banking Has Changed: Are You EmpoweringConsumers in the Age of the Customer?

Once Technology FavoredOnce Technology FavoredCompanies. Now, it EmpowersCompanies. Now, it EmpowersCustomers...Customers... "Customers feel empowered. It’s not just thatthey know they’re “always right,” they know theyalways have a voice due to all of the socialmedia options at their disposal, if you forget thatthey’re “always right.”

- MICAH SOLOMON, FORBES

Consumers Punish OutdatedConsumers Punish OutdatedStrategies...Strategies...

But They Reward Good Ones —But They Reward Good Ones —If You're Netflix ;)If You're Netflix ;)

WELCOME TO THE NEWWELCOME TO THE NEWWORLD WHERE...WORLD WHERE...

"53% of Millennials would rather lose their sense ofsmell than their technology." The average person now has a shorter attentionspan than a goldfish. (8 seconds vs. 9 seconds) -NEWSCRED

WHERE YOU CAN NO LONGERWHERE YOU CAN NO LONGERCOMMODITIZE....COMMODITIZE...."Online and mobile banking will not yield thebest results if they are not combined withcustomized services. Banks need to understand the specific needsand preferences of their clients, and besensitive and open to client concerns. This ishow banks will build an empathic relationship."

-BBVA COMPASS 12/16/14 BANKING REPORT

That Means RethinkingThat Means RethinkingBranches...Branches..."There's been a 90% decline in branch visits in the past decadeand a half, along with a 50-70% decline in core in-branchtransactional activity."

-FDIC

That Means RethinkingThat Means RethinkingBranches...Branches..."Sometimes it can appear that banks are working fortheir tellers, not the other way around."

-JR PIMENTAL, VP/HR, BRISTOL COUNTY SAVINGS BANK

Rethinking How YouRethinking How YouInteract With ConsumersInteract With Consumersin a Digital World...in a Digital World..."71% of consumers believe theirrelationship with their bank isonly transactional."

-ACCENTURE

"An average company hears from lessthan 5% of its unhappy customers."-RUBY NEWLL-LEGNER

Ernst & Young "Global Consumer Banking Survey 2014"

And Rethinking Omnichannel...And Rethinking Omnichannel...

THERE ARE MANY THERE ARE MANY POSSIBILITIES...POSSIBILITIES...

"Mass personalization tied to permission-basedmoney movement is going to change this industryso dramatically that we will not recognize it withinthe next decade."- BRAD LEIMER, HEAD OF INNOVATION, SANTANDER

A NEW WORLD WITHA NEW WORLD WITHMORE TOUCH POINTS MORE TOUCH POINTS "Consumers now interact with banks 15-20times per month, up from 3-4 times in thepre-digital era."

-NETFINANCE

So How Do You DisruptSo How Do You DisruptThe Disruptors?The Disruptors?

"Global investment infinancial technologyventures tripled fromUS$928 million to US$2.97billion between 2008 and2013, and is likely to growto US$8 billion by 2018."- ACCENTURE

WITH YOURWITH YOURBIGGEST ASSET:BIGGEST ASSET:

DATADATA

AND ENRICHING CUSTOMERS'FINANCIAL LIVES, WHEREVERTHEY MAY BE "86% of consumers makefinancial decisions at noparticular time."- CGI

3 FOCUS AREAS TO3 FOCUS AREAS TOENSURE YOU STAY TOPENSURE YOU STAY TOPOF MINDOF MINDFinancial Empowerment: Empowering members orcustomers to lead better financial lives.

Customer Centric: Be customer/member focused andallow them to interact with you, how they want.

Strategy Shift: Make the necessary technology andinternal structure/mindset shifts to enable this.

THE EVIDENCE IS CLEAR

THAT EMPOWERING

ACCOUNT HOLDERS IS

THE ONLY WAY FORWARD

Ernst & YoungThe #1 engagement driver is to invest incustomer financial well being.

Source - Ernst & Young

Here Is What CGI says..."Consumers already trust banks with their money. The nextstep is to become a trusted partner in helping consumersto manage their spending and wealth creation."-CGI

Source - CGI

CISCOCISCODigital BankRich Cross-ChannelCollaboration & AdviceCustomer CentricityData

Interactive, personalized capabilitieswill enable ‘digital bank 4.0’

Source - Cisco

Brett King, Founder &Chairman, Moven andAuthor Bank 3.0

"Consumers just want solutions to their day-

to-day financial problems... We surveyed

customers & 95% of them said they couldn't

remember ever receiving any good advice

from a bank in a branch.

Banking has to work when and where they

need it. The best advice and the best service

in financial services happens in real time and

is based on customer behavior, using

principles of Big Data, mobility, and

gamification."

- American Banker Interview

Bradley Leimer, Head of Innovation,Bradley Leimer, Head of Innovation,Santander Bank, N.A.Santander Bank, N.A.

"There’s a big opportunity out there to focus on buildingour customers wealth in every segment. Our bankingexperience should offer continual feedback, which providesa life-cycle analysis equivalent to that of an ‘annual check-up’ with the doctor.

It should enhance systematic savings opportunities bygiving consumers personal feedback into what ishappening and make a deeper connection into their lives."

“Loyalty is the currency of the new relationship between the client and FI.Recommendations for action based on sound factors such as expertknowledge coupled with predictive context (e.g., history, geography) willcreate a new conversation between FIs and their clients.

This type of unique personalized insight will be experienced as coming froman omnipresent, expert financial ally who is acting in the best interest of thecustomer’s financial health.”

- JAVELIN STRATEGY & RESEARCH

"Simple" Customer Reviews"Simple" Customer Reviews

"I changed banks because

of the way you can easily

save money and set money

aside for bills or groceries."

Customers don't want to use

third parties to manage

finances, but are forced to

right now!

"Once I started using goals, I

began to actually save money

for the first time in my life."

SO REMEMBER...SO REMEMBER...

1. Financial Empowerment: Empowering members orcustomers to lead better financial lives.

2. Customer Centric: Be customer/member focusedand allow them to interact with you, how they want.

3. Strategy Shift: Make the necessary technologyand internal structure/mindset shifts to enable this.

3 FOCUS AREAS TO ENSURE YOUSTAY TOP OF MIND

BECAUSE WHEN YOU'RE TOP OFBECAUSE WHEN YOU'RE TOP OFMIND YOU DRIVE ROI MIND YOU DRIVE ROI “It’s now possible in software for us to offer personalized attentionto hundreds of thousands, even millions of investorssimultaneously...”

ADAM NASH CEO, WEALTHFRONT

“The more data and visibility we have into customers, the more wecan engage them in their financial lives. The more we engagethem, the more it will put us in the driver’s seat and this is wellworth investing in.”

JOHN SCHULTE, CIO, MERCANTILE BANK

YOU DRIVE CROSS-SELL... YOU DRIVE CROSS-SELL...

"Primacy drivesshare of wallet"

- PWC

YOU WINPRODUCTSFROM YOURCOMPETITORSBECAUSE THEIREXPERIENCESAREN'T UP TO SCRATCH...

YOU CREATEENOUGHREASON FORUSERS TOSWITCH TOYOUR BANK

AND FINALLY YOU WINAND FINALLY YOU WINCUSTOMERS FOR LIFE...CUSTOMERS FOR LIFE...

"Customers don’t think in siloes. They are just interacting with theirfinancial institution. If we can help customers through the progression oflife financially, I think we are going to win big time.

This is not a focus on providing products or services, but the overallexperience. If you can guide me with my finances and particularlythrough a major event, you will gain my trust most likely for life."

- TOP 15 BANK EXECUTIVE, NETFINANCE

THAT IS WHY THAT IS WHY Financial Empowerment Is theKiller Strategy Financial InstitutionsAre Looking ForBanking Has Changed: Are You EmpoweringConsumers in the Age of the Customer?

MX helps financial institutions empowertheir account holders' financial lives.

Learn more at MX.com

More detailed whitepapers on how to achieve this at

media.MX.com

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Fernando Rojas Braga (The Noun Project)

Tonielle Krisanski (The Noun Project)

Rémy Médard (The Noun Project)

P.J. Onori (The Noun Project)