Embed Size (px)
Citation preview
Revolutionizing bankingMaintaining trust in a world of advanced analytics and AI-driven personalization
The bonds between Canadians and their banks have historically been very strong, especially when compared to most other jurisdictions. However, as the financial services industry enters a new world of AI-driven analytics, Open Banking and other disruptions, there is little question we will see some challenges arise, as new entrants with innovative products and models emerge, and as customer preferences evolve. For the incumbent financial institutions, it will take more than maintaining the “status quo” to navigate the disruptions ahead.
Like many industries, the financial sector’s growth is contingent on trust. Canadians already exhibit a healthy degree of confidence in their banking partners; yet mounting concerns about data privacy and protection are an increasing source of concern. In fact, though Canadians may be more trusting of our banks than consumers in other countries are of theirs, Canadian customers are increasingly less likely to provide their data without receiving extra privacy assurances or benefits in return. Moreover, fintechs and even established tech companies are introducing customers to new and often more agile solutions. These new relationships built around ease of doing business have created strong pressures for banks to innovate.
The impetus for changeWhile the risks are concerning, the rewards are clear. Those banks that can address emerging client needs by driving innovation, embracing technology, and engendering trust will be the ones who prosper.
“ Customers want their financial partners to understand them – recognize their life stages, anticipate the products and services that match those stages, and conduct business with them on their preferred terms. At the same time, customers are reading the headlines and taking stewardship of their data. They want to work with partners who can protect their information. It’s a very fine line in terms of how banks need to utilize but, also respect the data they have.”
John Armstrong, Partner and National Industry Leader, Financial Services, KPMG in Canada
© 2019 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Five MysUnderstanding your customerCustomer choices have always been influenced and governed by multiple factors, but never has this been as complex and subject to disruption as it is today. The Five Mys framework helps identify what customers value in an experience, understand the moments that matter to them, get smarter about the connections that contextualize their lives, and learn about the trade-offs they make with time and money. How these factors work in concert across an individual’s different life stages and events is key to unlocking real insights and predicting what will drive the customer of tomorrow.
The Five Mys and the Canadian customer
My motivation
51%of Canadians are
anxious about the hacking of
financial, medical, or other personal
information online
Characteristics that drive behaviour and
expectations
My attention
Ways individuals direct their attention
and focus
My watch
How individuals balance constraints of time
and how that changes across life events
My connection
How individuals connect to devices, information
and each other
57%of Canadian
Millennials expect companies to have
an app
My wallet
How individuals adjust share of wallet across
life events
Recognizing customer concerns around data
security must help drive new financial
products and services, channels, and client
experiences
Penetrating a customer’s
consideration set can be a large obstacle
for new products and services, even for existing providers
Finding ways to streamline services and save customers both time and effort
will improve customer experience and loyalty
BUSINESS IMPACT BUSINESS IMPACT
BUSINESS IMPACT
Having a consistent and seamless omni-channel presence is
essential to connecting with today’s customers
BUSINESS IMPACT
Understanding and catering to customers’ life events and helping
them address their financial concerns
will drive deeper and longer-lasting financial
relationships
BUSINESS IMPACT
54% of Canadians
proactively filter information
of Canadians expect companies to value
their time
46%of Canadians are
worried about running out of
money in retirement
46%
© 2019 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The Six Pillars Designing customer experience excellenceBased on nearly a decade of research and more than two million evaluations across multiple markets, we have identified and validated six fundamental components of every great customer experience. The Six Pillars are inextricably intertwined and, when combined, provide a powerful mechanism to help decision makers understand how a strong customer strategy is executed.
By looking at these insights in the context of the Five Mys, banks and other FIs have the opportunity to truly understand why, when, and how their customers buy.
The Six Pillars of customer experience
BUSINESS IMPACT
Treating customers as individuals and catering to their unique situations
and preferences is essential to building long-term relationships
BUSINESS IMPACT
Making clear, explicit contracts with customers as to how their
data is being collected, managed, stored, and utilized helps set
expectations and engender trust
BUSINESS IMPACT
Banks will need to break down internal silos to achieve a holistic
‘single view’ of their customers and deliver the omni-channel experience
customers are demanding
BUSINESS IMPACT
FIs must address and resolve issues quickly and reliably if
expectations are not met
BUSINESS IMPACT
Finding opportunities to reduce cost, time, and effort associated with typical banking transactions/
communications are dominant relationship enhancers
BUSINESS IMPACT
By building relationships based on trust and personalized service,
FIs can support customers as they navigate the complexities of wealth
across all life stages
of Canadian Millennials like/expect companies to personalize all interactions53% 57%
of Canadians trust banks with their payment data
75%of Canadians like/expect companies to remove all friction around purchases
57%of Canadians expect companies to make things as easy as possible for them
38%of Canadians often worry about their wealth
ExpectationsManaging, meeting and
exceeding customer expectations
Being trustworthy and engendering trust
IntegrityPersonalizationUsing individualized attention to drive an
emotional connection
EmpathyAchieving an understanding
of the customer’s circumstances to drive deep rapport
Time and effortMinimizing customer
effort and creating frictionless processes
ResolutionTurning a poor experience
into a great one
91%of Canadians say that quick resolution of issues is important
“ Canadian banks have significant levels of trust with customers. Retaining and building on this while delivering even more personalized experiences is the balance that needs to be maintained.”Peter Hughes, Customer and Digital Services Leader, KPMG in Canada
Source: All statistics quoted are from 2018 Me, my life, my wallet survey results.
© 2019 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.© 2019 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.
© 2019 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. 22442
The KPMG name and logo are registered trademarks or trademarks of KPMG International.
kpmg.ca/customer-insights
John ArmstrongNational Industry Leader, Financial Services,KPMG in [email protected]
Peter HughesCustomer and Digital Services Leader, KPMG in [email protected]
Ready to start building your banking organization of the future? Contact one of our professionals today.
Let’s do this.
Contact
Don’t count bricks and mortar out: A majority of banks view their branch network as an asset, serving to enhance brand presence and provide face-to-face advice. Even younger generations who are characteristically more drawn to digital experiences still want genuine, human service when it comes to major financial transactions such as mortgage. Yet while the death of the branch won’t happen anytime soon, that doesn’t mean banks can remain static. More can be done to create hybrid digital customer experiences in bricks and mortar locations.
Benchmark your customer experience: Not only against other banks, but against other industry leaders (e.g., Amazon, Facebook, etc.). Learn from their successes and missteps, and seek out ways to replicate their most popular customer-centric initiatives.
Break down your data silos: FIs are growing more reliant on data and analytics to upgrade the customer experience, yet that data typically resides within disparate and disconnected silos. To make full use of this data, it needs to flow freely, efficiently, and securely through all internal sources. This means adopting newer technologies (such as APIs and RESTful services), new
processes and tools, and a cultural change that incentivizes a focus on experience rather than sales and business targets.1
Upgrade the experience: Customers don’t want to fill out the same online forms or repeat the same information to multiple banking representatives. As suggested, they want an omni-channel experience where, for example, the mortgage application they filled out online can be easily referenced by the call centre agent, or where personal information they’ve given countless times before is readily available wherever and however they’re doing their banking.
Be open to partnerships: Aging legacy systems can hinder a bank’s ability to keep up with new requirements. The largest FIs will have the means to invest to close these gaps internally, but for many, the way forward means seeking partnerships with fintechs and other innovative partners to acquire the products and experiences their customers are seeking.
For more information on the Canadian customer, the trends shaping the market, and what it means for companies, read Me, my Canadian life, my wallet.
1 Living up to customer expectation: Talking to Bank CEOs” KPMG, 2018.
Developing a winning strategy for retail banking
