Reshaping the Bank around Pervasive Service Designemea.nttdata.com/fileadmin/web_data/country/it/IDC_Mobile_Bankin… · Reshaping the Bank around Pervasive Service Design IDC Banking

Reshaping the Bank around

Pervasive Service Design

IDC Banking Forum

Milan, January 10th, 2015

Copyright © 2012 NTT DATA 2 Copyright © 2012 NTT DATA 2 Copyright © 2014 NTT DATA Italia S.p.A. 2

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Key Customers needs are emerging

Addicted to connectivity

I am always On

I use multiple Devices

I stay in multiple locations

I want immediate and secure access

Addicted to customization

I get better deals

I save money

I want the ultra convenient

I want personalized and customizable offers

Addicted to freedom

I am in control

I am better informed

I want more social engagement

I want more fun

What Customers want is the ability to access banking services at any time

from any location using a better and simpler experience than in branches


New technology trends allow adoption of Mobile channels

Source: IDC, 2015

01 01 01 02 02 02 03 03

05 05 05

05 05

05 05

05

2011 2012 2013 2014 2015 2016 2017 2018

Mobile subscription (billion) Laptop & Tablet

Smartphone

Feature phone

02 03 03 03 03 03 04 04

2011 2012 2013 2014 2015 2016 2017 2018

Internet users (billion)

Affordable Smart

Devices

Mobile will become the

predominant channel

Share of

population 32% 35% 38% 40% 42% 44% 46% 47%

Ubiquitous

Broadband

Connectivity

By 2018, there will be

an additional 0,7 billion

internet users

Share of

population 82% 88% 91% 95% 98% 101% 104% 106%


Propensity to use Digital/Mobile channels is increasing….

84%

77%

78%

80%

73%

9%

16%

11%

4%

12%

Current accounts

Savings accounts

Investments

Mortgages

Consumer finance products

53%

38%

58%

72%

32%

43%

59%

28%

10%

47% Branches

Agents/Brokers

Call center

Direct channels

Channel usage in 2010 Expected channel usage in 2015 2010, % of sales 2015, % of respondents

Source: McKinsey & Co and EFMA, April 2011

New Mobile technologies allow for new way of interaction and streamlines the distribution

chain of financial services for access to formerly excluded customers


…highlighting a direct correlation with buy propensity

• Fully engaged customers average 1,14

additional product categories with their

primary bank than do customers who are

"actively disengaged"

• Customers who are fully engaged bring

also $402 in additional revenue per year to

their primary bank compared with those who

are actively disengaged, 10% greater wallet

share in deposit balances and 14% greater

wallet share in investments

1,54 1,41

3,20

2,73

1,00

0,77

0,55

0,23

0,00

1,00

2,00

3,00

4,00

5,00

6,00

7,00

1 2

Core deposit products

Related deposit products

Credit products

Other

FULLY

Engaged

ACTIVELY

Disengaged

Ave

rag

e p

rod

uct

s w

ith

pri

mar

y b

ank

6,28

5,14


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Banks can leverage their unique asset….

Strong Technology

Investment

(payment, internet

banking, mobile…)

Customer Trust

Intrinsically digital

products

Knowledge on

Spending Behavior

and Purchasing

power

Awareness of

Customer Location

(POS, ATM, Branches,

Smartphones…)


…for expanding its footprint along the whole customer journey

Examples

Generate

demand

Map

places

Price

Comparing

sites

Contacting/

searching the

deal

Purchase

decision Payment

Purchase

evaluation/

feedback

Loyalty/

returning

customer

Effective tools

for location

based

advertisement

and marketing

couponing

services

Mobile apps

are capable of

real-time

location based

search

Certain test

applications

support

comparing

different financial

institution

Specialized third

party websites

can compare

prices, offers of

different financial

institution and

also the opinions

of other

customers

Mobile

payment

New tools are

capable of

contacting and

navigating the

consumer to the

point of interest

Purchase

feedback can be

shared after

transaction

Experiences,

opinions are

shareable on

social network

Reinvented

cards are able

to collect

loyalty points

after checkout

or specific

transactions

Cellfire

collects unique

coupons and

discounts

AroundMe

shows places of

interests around

the customers

according their

search input

Yelp helps to

find the best

retailer with

evaluations

Google Local

collects

information

Google Maps

plans routes

Segugio.it maps

the best prices

Foursquare is a

place to share

customer experience

Swipely

collects post

sales discounts

Search, evaluation of alternatives Decision making Post-evaluation Transaction

Today bank

coverage

Leverage Mobile for expanding to the whole e-commerce journey and adopting new mobile

related services such as location-based services, rewards & loyalty and couponing


WH

AT

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HE

MO

BIL

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EN

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RS


Innovation in Bank requires a totally new Service Creation approach….

Be Aware &

Get Advice On Board Usage Care

Relationship &

Channel

Model

Segmentation &

Personalization

Model

Partnership &

Referral

Model

Pricing &

Revenue

Model

• Products have to be decomposed into smaller Business Service Elements

• Reusability is key for reducing time to market

• Pervasiveness, Personalization and Simplicity are key for customer adoption


… which requires a new Operating model

Become Fast

Keep Basics

Service Creation

Sav

ings

for

Fun

ding

Care Usage On

Board

Be Aware &

Get Advice

Create a separate fast way of working to develop the innovation

Improve your foundation making it as efficiently as possible to keep costs down, maximize revenue

and free up funds to invest in the new


…new Organizational structures….

HQ

BU

1

BU

2

BU

3

Fast IT

Slow IT

Fast IT

Slow IT

Fast IT

Slow IT

HQ

BU

1

BU

2

BU

3

Fast IT

Slow IT

Digital change agent

HQ B

U 1

BU

2

BU

3

Slow IT

Dig

ital

Fast IT

HQ

BU

1

BU

2

BU

3

Dig

ital

Ser

vice

Pro

vide

r

Silo Multidisciplinary Digital Hub Outsourced

Coordination

Sharing

Op

S

B

S

B

S

B

Op Op

S B

Op Slow IT Op

S

B

S

S Strategy B Budget Op Operations

Instead of a traditional hierarchical organization that reinforces a silos based structure, transformed

Organization will experiment loosely connected structures

This encourage self-organization into cross-organizational and multidisciplinary teams


…new Partnership models….

Partnership model have to move from a Traditional one (Customer – Supplier) to a more Wirearchical

model (fintech partners, Startup, VC, R&D, Universities…)

Shift the digital business from a linear relationship to a dynamic value ecosystem

Supplier Production Supply

Chain Marketing Customer

Universities

Startup

R&D

Fintech

Partners

VC

Traditional

Suppliers

OUs


…new Investment Evaluation/Monitoring practices

Set a group of criteria to select the most

meaningful initiatives to start with

VALUE

IMPACTS FEASIBILITY

Projected cash stream from

investing in an innovation

More likely cash flow resulting

from doing nothing

Traditional financial tools are designed for stable market environments, but fail when applied to

innovation under conditions of uncertainty and rapid change.

Newer investment methodology evaluate the costs of “doing nothing” and monitor Value creation

Monitor progress (using Coorti and

Split tests)


…and a new Service Creation process

A reshaped Service Creation process which acts as the enterprise glue which keep together two parts

of the new Operating model using, show quickly small but concrete results and scale-up successful

projects by “contamination” of other areas monitoring agile teams for security/risk compliance

Seeding

Blossoming

Horizon

Design

Digital

Checkup Sprouting

Governance

Service

Creation

Growing


Your Digital

Readiness

Your Transformation

Ability

Digital Checkup is our approach to drive Banks towards their digital awareness

positioning them inside the Readiness Matrix through the evaluation of 2x5 drivers

Products &

Offering

Customer

Value Channels Processes

Architecture

&

Technology

Regulation

Competitors

& New

Entrants

Third Party

Mngt

Governance

&

Approach

Organization

&

Skills

Today

Tomorrow


Our Full Lifecycle of Mobile Services Implementation & Management

Mobile Application

Development

• User Experience (UX)

• Native Device Development

(iOS, BlackBerry, Android,

Windows Phone)

• Cross-Platform

Development

• Enterprise Mobile App

Development

(SAP, Oracle, SalesForce)

Mobile Testing Services

• Accelerated Mobile Test

Automation

• On Demand

Performance Testing/

Benchmarking

• Accessibility Testing

• NTT Remote Test Kit

Mobile App Mgmt & Infra

Services

• Mobile Infrastructure and

Hosting

• Mobile Device

Management & Security

• Enterprise App Store

• Unified Communications

• Dual Persona


CA

SE

ST

UD

Y


“Hello bank !” is part of a wider BPN Paribas / BNL Relationship strategy for 2014-2016

Source: BNP Paribas Group Fourth Quarter Results (13th February 2014)

Retail

Bank

Private

Bank

Hello

bank! Promoters

Clients that use different

channels but don't avoid the

branch as point of reference for

operations/ counseling/ buying

experience

Clients with important assets that

require a dedicated management

and ask for a one-to-one

relationship with a trustworthy

consultant

Affluent Clients that need a

trustworthy consultant for

their investments' choice

Digital Clients that do not desire

physical interaction with the Bank,

using new digital technologies

meanwhile keeping relationships

when required

Branch ATM CRSC Internet Mobile Social Promoters Relation

manager

Acquisition

Less Costs

Acquisition

Income

Retention

Income

X-selling

Retention


We help spend better…


…and to save more in a different,

social perspective!


The assistance model integrates

self-service management mode with

highly customizable caring & support

features thanks to synergies between

Contact Center and Hello! Team


Communication Compliance Legal Branches

Information Technology

CFO

Operations

HR

User &

Customer

Experience

Customer

Acquisition

Customer

Development

BNL

• User Experience Design • User & Customer Interaction Design • Web & Mobile Sites Content mgmt. • Project Management (vs. IT)

• Customer Acquisition Budget • Acquisition Partnership • Digital Marketing for Acquisition • Interface with Brand Communication

• Customer Relationship & Cross Selling • Customer Satisfaction & Service Level

Excellence • Sales Animation & Chang mgmt.

“Hello bank !” Business Architecture

Lean Organization: 3 Functional Managers

Less than 40 Operating Resources

COPYRIGHT 2015 NTT DATA ITALIA S.P.A.

MAURO GIORGI, SVP FINANCIAL SERVICES

http://it.linkedin.com/in/maurogiorgi

https://twitter.com/Aqualung61

Documents

Reshaping the Bank around Pervasive Service Designemea.nttdata.com/fileadmin/web_data/country/it/IDC_Mobile_Bankin… · Reshaping the Bank around Pervasive Service Design IDC Banking