© 2018 NTT DATA, Inc. All rights reserved.

Driving the Digital Customer Experience in 2020:

Why Financial Services Firms Must Think Differently About Data

Michael Goodman, Senior Director, Data & Analytics, and Technology Advisory Practice Lead, NTT DATA Services

April 2018

2 © 2018 NTT DATA, Inc. All rights reserved.

• Amazon: Doing digital customer experience (CX) right

• Top 5 business drivers for digital CX

• What financial services institutions’ (FSI) customers say

• Explorers vs. Settlers

• What’s behind the data problem

• How to start thinking differently about data

• About NTT DATA

Agenda

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What does all this mean for

Financial Services Institutions (FSIs)?

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FSIs Recognize the Importance of Digital Customer Experience (CX)

1 Improve customer retention

2 Improve customer services

3 Improve customer acquisition

4 Grow revenue

5 Improve brand image

Top 5 Business Drivers for Digital CX

56%of banks believe that

digital CX will be a

differentiator

Customers are

demanding that Digital

CX improve55%

Digital CX is the most

important part of the

customer experience

Customers are

demanding that Digital

CX improve76%

of FSIs believe they are

on track with digital CX

company objectivesSource: NTT DATA Study: “Digital CX in 2020: Cracking the Code on

Data,” February 2018

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Excellent Digital CX

FSIs Handle the Easy Tasks Well

Check balances Pay bills Monitor savings Open a credit card

Basic tasks involving transactions monitoring and applications

are considered straight forward. They are also the most

common activities conducted on mobile devices.

Q20. Generally, how would you rate your digital CX with each of the following interactions with this institution? Ranking based on Excellent rating for Top 5 Banks

Customers demand

that digital CX

improve61%

Respondents who

are totally satisfied

with their digital CX16%

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Explorers Seek More Personalization and Guidance to Reach their Financial Goals

Settlers Explorers

Advise me on my options in insurance

Intervene and prevent major purchases

45% 77%

40% 75%

52% 75%

32% 66%

22% 61%

Act as a voice of reason on major overall spending decisions –

recommending against purchases to help stay within budget

Connect the dots between my income, expenses, and savings –

recommending to save that bonus instead of buying a new car

Proactively send me reminders on upcoming major payments

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ExplorersSettlers

In-store retail purchase information

Geo location information

Information at other FIs (excluding credit cards)

Airline Programs (frequent flyer information)

Credit card information (from other banks)

Online retail purchase information

Uber/Lyft/ OpenTable information

Facebook and Twitter information

Willing to share …

81%

80%

77%

76%

75%

74%

64%

62%

64%

55%

56%

52%

58%

51%

44%

35%

Explorers are Willing to Share Personal Data for an Improved DCX and Financial Advice

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What’s Behind the Data Problem?

Problems range from

sourcing and obtaining

data and data quality to

managing real-time

interaction data and

integration of data across

products and channels.

67%

Security is a major challengePrivacy is a major

challenge

70% 64%

Do not have a solid data strategy

that supports Digital CX

Have a data talent shortage

59% 49%

Struggle to manage the volume

of data for Digital CX

Have limited or no trust in data

and analytics

48% 46%

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How to Start Thinking About Data Differently

Data

Mining

Data

Quality

Data

Access

Data

Analytics

Data Strategy

Retention

Loyalty

Advocacy

Wallet Share

LoremGreater Lifetime Customer Value

• Treat data as

an asset

• Create a vision

for how to

leverage data

• Focus on the 5 essential

elements of a good data

framework

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Industry leaders derive and share insight from data across the enterprise. Yet, most organizations struggle with incomplete, inaccurate and poorly managed data.

Paving the Road to Data as an Asset

Drive Quality

Drive Insight

Manage as an Asset

Monetize

Strategy Governance Quality Operations Architecture Platform

Data Capability Foundation

Industry Average Leaders

% of global

companies that

trust their dataSource: Experian

56%don’t trust

their data

Business cost of

bad data for an

organization’s revenueSource: IT business edge

10-25%of revenue

Cost to U.S. businesses

due to poor quality

customer data Source: IBM

$3.1Trillion

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Download the White Paper

To get the full report, visit:

nttdataservices.com/DigitalCXin2020

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About NTT DATA Services

Top 10 IT services provider, helping clients

integrate business strategy and technology to

accelerate business growth in a digital world.

Who we serve

leading financial services

and insurance firms around

the globe including:>50

15 of the 20 largest U.S. banks

2 of the top 5 global investment banks

Consulting

Digital and Application Services

Infrastructure, Cloud and Security Services

BPO Services

Banking and Financial

Services

Capital Markets, Wealth

and Asset Mgmt.

Insurance

50,000 professionals

#9 on Consulting Magazine’s “Best Firms to Work For” List

NTT DATA Services 275,000 professionals | $105B

$2B investment in R&D

#15 World’s Most Valuable Brands

Acquired Dell Services

2016

Deal of the Year

Acquired Carlisle & Gallagher

2015

NTT DATA Services

Portfolio:

Organized around your

industry and priorities

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