The Findings - Owen James Events · 4/30/2015 · The Findings Thursday 30 April 2015, The Berkeley, London . ... How to work with small, disruptive partners from within a large

Thursday 30 April - The Berkeley Hotel, London SW1

Organised by

The Findings

BANK & BRAND DISTRIBUTION OF RETAIL FINANCIAL SERVICES

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do please call us on +44 (0)1483 861334 or email James Goad - [email protected]

The Findings Thursday 30 April 2015, The Berkeley, London

Contents

Summary ................................................................................................................................................. 2

This Report ............................................................................................................................................. 2

The Sponsors .......................................................................................................................................... 4

Partnerships made in heaven – building the perfect partnership that stands out from the crowd. ...... 5

Life thru a (new) lens! Life protection for the over 50’s....................................................................... 7

Simplifying investment choice – how can investment propositions be delivered to known behavioural

patterns to simplify decisions and deliver better savings outcomes? ..................................................... 8

Plugging in technology to solve the advice gap. ...................................................................................... 9

Ethical investing - product innovation to help you build trust and reconnect with customers ........... 10

Pensions just got even sexier - what opportunities do the regulatory changes present and what are

the new solutions for the new age of retirement? ............................................................................... 12

Love later life - winning the hearts and minds of generation five ‘0’. ................................................... 13

Amazing Amazon – how can you build a ‘friction free’ customer experience? ................................... 15

Mapping the customer journey. ............................................................................................................ 16

The evolution of omni-channel marketing – bringing it all together. ................................................... 17

The future landscape of financial services – who are the outlier threats to your business model? .... 19

The Bank of the future. ......................................................................................................................... 20

Digital transformation – how can you operate at the speed of digital to innovate, grow and drive

footfall to your business. ....................................................................................................................... 22



Summary

The eighteenth Meeting of Minds Bank and Brand Distribution of Retail Financial Services

took place on 30 April 2015 at The Berkeley Hotel, London. This document summarises key

issues raised in the topics discussed during the roundtables that took place on the day.

A Meeting of Minds Bank and Brand Distribution of Retail Financial Services is a strategic

forum organised by Owen James. It is an opportunity for 90 senior level decision makers

from the largest high street banks, building societies, affinity groups, product and service

providers and industry experts to meet in a neutral environment where they can examine

industry issues and opportunities and develop business strategies to address them.

Participants enjoy access to strategic insight, active involvement in shaping the industry and

networking at the highest level.

At the core of these Meetings is a series of boardroom style sessions addressing a pre-

researched and pre-agreed agenda, with open discussion led by objective and professional

moderators. External speakers spark debate and encourage fresh and original thinking.

To find out more about taking part, please contact: Sian Gray at Owen James:

[email protected] or you can contact her at 01483 861 334.

This Report

The Roundtable Sessions were moderated by:

Mr Rod Bryson – Cap Gemini

Dr Claire Fetherstonhaugh – Finnacord

Mr Matt Thomas – KPMG

Mr Jeremy Oakley – KPMG

Kunal Jhanji – Oliver Wyman

Charo Garzon - Paradox

Lloyd Wigglesworth – Paradox

Phil Alcock – PBF Solutions

Kevin Mountford – PBF Solutions

We are very grateful for the time and energy they have expended on making A Meeting of

Minds Bank and Brand Distribution of Retail Financial Services a success and hope you will

consider this report an interesting, thought-provoking and accessible read. As ever your

feedback is much appreciated.

mailto:[email protected]

3 | P a g e This document is the copyright of Owen James. If you have any questions about any aspect of this document,


We would also like to thank the independent experts who were part of the sessions for

sharing their knowledge and giving us their time and energy both in the run up and on the

day.



The Sponsors

We would like to thank all our sponsors, without whom the event would not have been

possible. The following groups took part in the Meeting and their motivation for taking part

is threefold:

To be, and to be seen as being, supportive of the industry;

To understand the stresses and strains being placed on the industry and, where

possible, respond to them; and

To talk openly with these business leaders with a view to ensuring that their businesses are strategically aligned.



Partnerships made in heaven – building the perfect partnership that stands out

from the crowd.

Facilitated and written by: Claire Fetherstonhaugh, Finaccord & Charo Garzón

Expert: Alan Leach, Finaccord

FIRST SESSION:

The first session on partnerships opened with a discussion of the challenges currently faced

by the participants. These included:

How to build on current expertise

How to use the Internet wisely

Regulation

The separation of the financial services team from the core business of their

company

Renewing partnerships

How to raise your profile through partnerships

Integrating what partnerships mean to both partners to enable the scheme to work

harmoniously

Changes in distribution, especially as concerns an aging population

Need for inspiration

This initial discussion was followed by a presentation by Alan Leach on the current state of

the affinity and partnership market in the UK. Affinity partnerships drive 20-30% of total

insurance channel selling and are better for customer retention, demonstrating their

importance to the financial services sector.

The remainder of the session focused mostly on the relationship between partners in an affinity scheme. Many agreed that it was important for the financial provider in the

partnership to not merely be a service provider but an actual partner, and expressed

frustration at not being treated that way. The need for mutually beneficial partnerships, with

expectations set out before any contract was signed, gained lots of approval. It was

suggested that it was better to have exploratory conversations without an immediate

outcome than to rush into a new partnership that was not fully considered and cause stress

in the future. A good partnership would probably take around two years to get everything

in place. Both sides should have the courage to say 'no' to a partnership, or to end an

existing partnership if it was no longer working for their consumers. There was a

conversation about the balance of power in partnerships, and who gained the most. The

question was raised as to whether partnerships were more important for money or brand

association/recognition.

The change in the digital landscape was discussed, both for financial services providers and

their partners. It was mentioned that it is now easier to test partnerships and to check

metrics, as well as to make immediate changes. Partnerships also offered up new

opportunities for investment in the growing fintech startup sector.



Throughout the session there was a constant theme concerning the importance of the

consumer as the main consideration in partnerships, and this was the main conclusion of the

session. Partnerships should only be considered if they would be beneficial to the final

consumer. It was also suggested that financial services providers should not just have a stock

proposition for each partner, but needed to consider the demographics and needs of the

customers as well. A high degree of relevance is necessary for the partnership to work.

SECOND SESSION:

The second session on partnerships also started with a discussion of the challenges facing

participants. These challenges included:

Engaging customers in a fragmented market

How to have social impact partnerships

Aligning needs and outcomes with partners

How to work with small, disruptive partners from within a large organisation

How to have a beneficial partnership with a partner driven only by price

How to engage with the 50+ market

How to manage multiple white label products

How to keep brands integrated as companies change over time

Regulation

This was again followed by a presentation by Alan Leach about the market. It was discussed

that broker partnerships are growing, while the use of aggregators is still growing but not as

quickly as a few years ago. Again it was discussed how retention rates are higher through

partnerships, possibly because of the brand trust in the introducer.

The first question raised in this session was whether anyone had had a 'partnership made in

heaven', or one in hell! As in the first session, a good partnership was one where both

partners had the same goals for the scheme. Partnerships seem to be moving away from the

legal joint venture partnerships, but long-term, stable relationships are still the goal. It was

discussed how the amount of investment needed in a good partnership was untenable if a

service provider had to keep pitching for the business every year. Brand alignment, and the

need for business plans to align as well, was mentioned as a necessary aspect of a good

partnership.

The rest of the session was focused on the digital and disruptive areas of financial services

and partnerships. Partnerships need to stay current and make judicious and appropriate use of the new selling channels available, including online and mobile. The quotation 'Your

biggest competition is someone you've never heard of' was repeated multiple times, as was

the need to partner with small, disruptive firms now to stay ahead of the curve. The

problem of regulation in this area was considered, and the problems of convincing a large

firm to invest digitally. There was also mention of how small, new companies will not have

the brand associations that established firms do, both for good and for bad. There was

disagreement on whether the disruption in financial services would come from within the

UK or from without, but it was agreed that it was necessary to partner with these new

firms wherever possible.



Life thru a (new) lens! Life protection for the over 50’s

Facilitated and written by: Mark Dynes

Sponsor introducing: Alison Manning & Georgina Shield, Cigna Insurance Services

Overview

This round table looked at how affinity providers can unlock some exciting opportunities in

protection by looking at the market ‘thru a new lens’.

It focused on the growing opportunities for brands and affinity partners in the life market to

snap up a share of the protection market by focusing the offering on the over 50s market.

Headline Finding 1:

There has been a lack of real innovation in this market – but new legislation may provide a

catalyst for change allowing affinity partners to take a different perspective.

Headline Finding 2:

There have been a number of unintended consequences of RDR regulations. This has meant

a reduction in advice in this market which has led to an advice gap and opportunities for

affinity partners to meet this consumer need.

Headline Finding 3:

Financial education remains critically important, especially in a non-advised environment.

Headline Finding 4:

Trust has been eroded as a result of recent scandals and there needs to be a concerted

effort by the providers in this market to restore trust. Cigna’s research has shown how

consumers are likely to turn to brands they trust.

Headline Finding 5: The needs of the over 50s are changing – driven by changing demographics, the shift from

empty nesters to full nesters and by growing levels of consumer debt . How do providers

ensure they remain relevant to these changing needs and how do they refresh their

proposition to ensure that it continues to serve the needs of this segment?

What’s next?

This market is often overlooked but it is critically important to ensure people have suitable

financial provision in later life. Any new regulation needs to have customer needs at the

heart of the change and ensure that the market remains fully functioning and competitive.



Simplifying investment choice – how can investment propositions be delivered

to known behavioural patterns to simplify decisions and deliver better savings

outcomes?

Facilitated and written by: Rod Bryson, Capgemini

Sponsor introducing: Tom Cropper, Birthstar

Headline Finding 1:

Customers want a simple but long list of requirements for an investment e.g. good returns,

no risk, cheap as possible, transparent, to name but a few.

Headline Finding 2:

Customers suffer from an inherent behavior bias such as the brand when selecting a star

manager to invest with. Understanding these bias points and using behavioral science can

help simplify and target solutions for customers.

Headline Finding 3:

Simplifying the investment choice is about making the experience through engagement far

more tangible whilst simplifying the range of manufactured investment products. For

example, Virgin Money had two fund products but these were very successful as they purely

focused on either growth or income which made it very simple for customers to execute.

Headline Finding 4:

Emotional engagement with customers is very important to understand about consumer

behaviors and to then target emotional engagement. For example: Innocent drinks Facebook

page engages on a range of topics but doesn’t specifically talk about drinks, it engages on a

range of issues to build an emotional engagement with its clients.

Headline Finding 5:

To simplify the investment choice also means that product or fund manufacturers need to

think about the outcomes that these solutions are designed to meet. Simply creating a simple range and not thinking about how customers will select and use them to meet their

needs could mean customers ultimately may select or have promoted to them solutions that

ultimately do not meet their objectives.

Target data funds offer one solution where they are designed to meet consumer outcomes

using data science but even with these, ongoing valuation of those customers’ objectives is

critical.



Plugging in technology to solve the advice gap.

Facilitated and written by: Rod Bryson, Cap Gemini

Sponsor introducing: Mark Davidson, Parmenion

Headline Finding 1:

It’s about choice; technology based solutions enable consumers to choose how they want to

engage. Technology enables different ways for consumers to engage and experience advice.

Headline Finding 2:

Even with a technology solution many ordinary consumers like the peace of mind of

speaking to an adviser or someone to help them make a decision.

Headline Finding 3:

There are large numbers of customers who want access to online advice capabilities.

Increasingly these customers stretch across a wide range from those with a small amount of

money up to those with high net worth. This isn’t any longer about consumers with a little

or a lot of money. It’s about choice to consumers.

Headline Finding 4:

There is still a major limiting factor relating to risk and to consumers understanding the

meaning of risk and how this relates to them.

Headline Finding 5:

Having a trusted brand makes a difference when using technology in advice. Consumers are

far more likely to enter the technology and trust if the brand is highly reputable. However it

is only an access point and the journey then through to execution is crucial to deliver what

the consumer expects of that brand.



Ethical investing - product innovation to help you build trust and reconnect with

customers

Facilitated by: Rod Bryson, Capgemini

Sponsor introducing: Charlie Thomas, Jupiter

Headline Finding 1:

— The group felt that selling innovative products can be challenging. They felt that there

was a need to encourage clients to take a longer term view with one member of the group saying that their growth on long term investing was 5% higher than other

investments.

— Products should also be adaptable – to change as the client ages. As they start out as a

young investor, the suite of products will be different to those offered as the customer

ages. The younger they start – the more likely we are to save the planet!

— There was some talk about marketing to these different customer types i.e. definitely more use of social media for the younger client.

Headline Finding 2:

The group then looked at the perception of ethical investing and how to bring in the mass

market rather than smaller ethical groups.

Groups to be targeted look like:

— Those in their twenties to thirties with children;

— Over 50s;

— Legacy money/people in care.

There is a desire to ensure that they are all involved.

— There was also talk around the difference of emotional and ethical investing. People now

invest because they want to find a positive way to invest rather than because they don’t

like certain industries – i.e. tobacco or oil companies.

— Yes, the products need to be green, but it is also about capital growth. If the investment isn’t producing the anticipated return, should the client continue to go green?

— Then the debate moved to pricing. Green pricing for green funds give a feel good price for doing the right thing.

— What should be transparent is how the investment is making change. One of the providers said that they operate complete transparency. If a fund isn’t working – they

ensure their investors know why.

Headline Finding 3:

The group then discussed knowledge and skills. They felt that there was a knowledge and

skills gap between those managing funds and selling clients the right products.

Some of the lack of knowledge around specific products:

— Solar Technology – people’s perception of solar is only around solar paneling when there are in fact over twenty solar technologies out there.



— Wave Creation promises huge wealth opportunity.

— Oil poverty is an area with many ethical investment needs.

— Wind Power (of which there is a total misconception) promises huge growth as currently 15% of our power in the UK is provided by wind.

Headline Finding 4:

— The group then discussed companies’ understanding of ethical investing – do companies just like the sound of it, or do they understand what it’s actually about?

— The group thought this could be a problem, and that a key way to entice companies’ support of ethical investing was to call funds “Industries of the Future’’ or “Future

Pneumatics’’.

— If the Government fully supported ethical investing it would encourage interest.

— And then how do they show their customers how they are making change and being

green – should they be ‘planting a tree for them’?

Next steps:

There was a unanimous decision that long-term investing, innovation and ethical should all

be working closer together.

.



Pensions just got even sexier - what opportunities do the regulatory changes

present and what are the new solutions for the new age of retirement?

Facilitated and written by: Keith Webb

Sponsor introducing: Jon Luckett & David Kerr, Aegon

Headline Finding 1:

Pensions are back as a hot topic and the mass market are taking notice with more people

engaging in the new “Freedoms” than ever before

Headline Finding 2:

If the government want to succeed in helping people secure the Retirement they want,

education and tools to help understanding are the biggest challenges

Headline Finding 3:

There was consensus that elements of all customer segments wanted to self-serve and that

solutions like the one showcased were increasingly needed by advisory firms as well, to

enable them to serve the needs of this increasing customer segment

Headline Finding 4:

Customers want simple, digital solutions that are available when they want

Headline Finding 5:

Concern was expressed by some around how guidance and advice interchange and how it

can be evidenced that the solution chosen by consumers was suitable

Headline Finding 6:

The view was expressed that increasingly clients required not one product solution but a

portfolio of decumulation products to provide them with right retirement outcome. The

view was expressed that the industry had the products required already. What was needed

was more insight / advice/ guidance on the right mix for clients because everyone will be different



Love later life - winning the hearts and minds of generation five ‘0’.

Facilitated and written by: Lloyd Wigglesworth, Paradox

Expert: James Burrows, High 50

Headline Finding 1: By 2020 42% of UK population will be over 50.

Headline Finding 2: People over the age of 50 control 79% of all UK disposable income.

Yet only 3% of people between the ages 50-65 think that brands talk to them in a relevant way.

Headline Finding 3: The financial services sector is still learning how to serve and market to this age group.

Headline Finding 4: People over the age of 50

Have higher confidence levels than ever before and are happier now than they had ever been.

Are not technically incompetent – remember they invented the Internet. They use Facebook

and they use Instagram.

They like technology but also expect personal customer service. They would really like their

bank manager back

40% go out more than once a week

46% take at least three holidays a year.

41% don’t think they have an adequate pension and 51% worry about their financial future.

Headline Finding 5: The brands that talk to them in the most relevant way are John Lewis, M&S and The BBC.

Next Steps:

The over 50’s need to be taken on a customer engagement journey just like younger people.

Prepare for longer term success.

There was a view from the group that there are huge gaps in the market for new products – eg

mortgages for the over 50’s.

Use research and insights into what the 50+ market want. Tell them a story about what it is you

are offering.

Multichannel approaches work well for this market but don’t ignore traditional methods, such as

print, which often gives the highest return on marketing investment.

Don’t mention age in marketing to the 50-65 age group, talk about life-stages – e.g. you no

longer live your life based on what other people think – deal with attitudes – the tone of voice

and imagery of your marketing is critical.

The over 65’s, on the other hand, are less sensitive about being reminded of their age and

experience has shown this strategy to deliver good results for this age category.

Over 50’s are very brand aware and loyalty programs work well. They will pay a premium for

well recognised names.



The mistake many brands are making is to treat the over 50’s as one market. There are as

many, or more, valuable different segmentations as other age groups. They may be twenty years

from retirement, on their second marriage and many will have significant financial commitments

for some time to come. Don’t assume they are likely to be empty nesters or silver surfers.

The over 50’s are possibly the biggest opportunity for FS companies, yet they are the customers

who receive the least well-thought through products, services or marketing.



Amazing Amazon – how can you build a ‘friction free’ customer experience?

Facilitated and written up by: Matt Thomas, KPMG

Expert: Alan Gilmour, Cogent Elliot

Headline Finding 1:

Customer Centricity

Amazon has built a very customer centric organisation:

Jeff @amazon.com – any customer can email Jeff. He then acts on the emails and follows

up.

The empty Chair – Meetings have an empty chair to represent the customer and people use

it as a device to keep the customer front and centre of the conversation (even deferring to

it – what does the empty chair think?)

Take convenience to extremes – the speed at which you can operate at Amazon is a lesson

to many (the group had a good discussion regarding PayPal on this point)

Train as a rifleman – Alan shared that Amazon execs spend two days a quarter on the front

line.

There was a long discussion about the device versus culture and leadership on customer

centricity.

Headline Finding 2:

Innovate don’t just compete in the “as is” market

The group discussed what this would take and the difficulty of maintaining the business case

to innovate.

Recruit explorers not conquerors – it was discussed how Amazon seek people who will

explore new ways of doing things and not just be out to win versus the peers short term.

Headline Finding 3:

We discussed the double edge of using customer data. Data is powerful not power – the examples used covered PayPal and making sensible

suggestions on what customers might be interested in but fell short of the use of data to

intrude on the customer.

Headline Finding 4:

Convenience and ease of use.

Taking convenience to extremes – this conversation started with the obvious debate about

customer journeys but quickly showed how Amazon has outperformed with discussions on

Kindle and PayPal making it easy for the customer to use Amazon’s services.

Headline Finding 5:

Be empathetic to the customer when your service is sub-standard.

“Sorry” is not the hardest word!

The next steps:

The topic of customer centricity and the challenges of making this work were clearly of

interested to the audience.



Mapping the customer journey.

Facilitated and written by: Kevin Mountford, PBF Solutions

Expert: Trish Holst, MumsNet & Alan Gilmour, Cogent Elliot

Gaining insights and data was critical in ensuring that any customer journey was

working.

Need to determine business model. Who is target audience and ensure deliver accordingly including likes of language, tone of voice, etc.

Relevance and personalisation becoming increasingly important.

Design and content needs to be relevant and via the likes of A/B testing ensure there

is a control and challenger approach.

Where there are third party relationships it is imperative to ensure consistency as

part of any hand-off.

Approach different where a manufacturer has a multi-product / multi-channel

offering. Need Omni solution where there is a similar experience regardless.

Similarly if there is a lifestyle or life-stage offering e.g. over 50s there needs to be consistency and relevance…no good supporting with a call centre of 20 year olds!

Always seek feedback from customers ...use likes of NPS but assessment of success

needs to go beyond this.



The evolution of omni-channel marketing – bringing it all together.

Facilitated and written by: Lloyd Wigglesworth, Paradox

Expert: Matt Thomas, KPMG & David Alexander, Mydex

Headline findings

Omni-channel marketing (OCM) was defined as: “A truly person-centred approach

which allows an individual to begin a journey in one channel and intuitively move

across a number of channels during that journey and have a seamless experience that

results in their desired outcome”.

Brands need to clearly articulate at what stage of a customer journey they want to

join in and in what channels they are going to offer their solution.

Customers now expect to be able to engage with their brands in the channel of their

choice. Being denied a channel, e.g. being forced to use on-line chat rather than

being able to phone BT, leads to frustration.

A positive experience of a visit to a GP now involves a choice of a phone call or on-line booking, a text reminder, a face-to-face consultation, being given a physical pack

of information on their condition and then further information received via secure

email. Many people now expect this as a normal experience.

Shopping at Ocardo, John Lewis, Waitrose or click and collect all used to be

managed as different channels within the same organization. This made it laborious

for customers. These channels are now designed so that customers can hop easily

on-line from one to the other.

Critical success factors for OCM

Be sure you really understand the typical journeys your customers make across your channels. How does your product or service fit into the customers’ lives?

You also need to understand how and why transitions between channels are

triggered. This can be by design but often is by bad design.

Consider how you nudge someone towards a particular type of behaviour.

Know the difference between person-centred design and customer-centric thinking.

Beware of when customer journeys are disrupted by unnecessary barriers and

gatekeeping – e.g. where you have to constantly verify yourself. Digital tokens are

going to make this a lot easier for customers with seamless access and single sign-on

Consider impact of OCM on the rest of the organisation

Many processes and forecasting mechanisms are stuck in the old world channels.

Organisational culture and structures have tended to lag behind changes in

purchasing behaviour.

It has been difficult to predict how changes are going to affect the workload in organisations.

There has been a lot of investment in front-end technology but back-end capabilities

have been exposed in terms of their ability to deliver



Examples of where resources have been successfully deployed. E.g. call centres,

which used to fill-in forms, now have become knowledge centres, helping customers

understand something rather than capturing data.

Further considerations for the future of OCM

Accept your version of a 360° customer view of the customer is in reality only 29°-

87°. E.g. you really don’t care about their train spotting hobby when trying to sell

them FS products.

Data minimization – consider what you really need to know. Don’t pretend to

customers that you care about every aspect of their life.

Customers will disappear from your radar as they go through their journey and then

come back to you. You need to know how to reconnect with them when they

come back. How well do you reconnect based on what you know about the

customer on the last visit?

Consider whether every product really needs to be offered through every channel?

Is that the best use of your resources? Beware of trying to spread marketing budgets

evenly between channels. Use ROI calculations. Often traditional marketing channels can deliver best returns.

How can you develop relationships with customers who purchase your products

only through a third-party?

Don’t overload customers with messages. Sometimes it is just best to get out of the

way and allow customers to make the transaction happen.

For customer complaints, learn how to manoeuvre customers to the channel where you are best equipped to deal with their issue.



The future landscape of financial services – who are the outlier threats to your

business model?

Facilitated and written by: Jeremy Oakley, KPMG

Expert: James Priday, Strawberry Invest

Sponsor introducing: Tom Cropper, Birthstar

Headline Finding 1:

Evolving customer behaviour and conduct regulation is driving change in Financial Services

chiefly enabled by technology.

Headline Finding 2:

Don’t fear or be constrained to innovate! Just do it, test and learn from customers,

designers and engineers.

Headline Finding 3:

Banks are now run by compliance and legal.

Headline Finding 4:

Do not fear competition as disruption – biggest threat is internal i.e. comfort zone, politics,

risk to career.

Headline Finding 5:

Omni-channel is key to enriching customer relationships but very hard – do not chicken

out.

Next Steps:

FCA Message - Disclosure and transparency has unintended consequences: it creates

opacity not clarity, does not aid consumer protection



The Bank of the future.

Facilitated and written by: Phil Alcock, PBF Solutions

Expert: Kunal Jhanji, Oliver Wyman

Headline Finding 1:

Any type of legacy bank with a physical presence will carry significantly more cost than a

digital disruptor. The potential of digital technology will reduce requirement of staff, rent

etc. The bank of the future will therefore be based on digital technology both for new start-

ups and challengers as well as legacy players migrating across.

Headline Finding 2:

Customers are not satisfied with the service they receive from banks currently; digital

players are far ahead in terms of advocacy and recommendation. The bank of the future will

have to focus on its delivery and this will likely mean specialism rather than generalism.

Banks, even large ones, cannot do everything for everyone.

Headline Finding 3:

Three components for success for the bank of the future:

1. Data – get to properly know your customer by asking for data and observing behaviour.

Social media and user ratings will play a part here.

2. Predictive algorithms – know what is around the corner so the bank can maintain the

bank of the future positioning.

3. Personalized service provision – think about how Google, Amazon and social media

platforms recognize customers, their behaviours, location and their preferences.

Headline Finding 4:

Bank of the future will continuously have to re-invest in improving the proposition and

experience. Despite regulation, there will become fewer barriers to entry and competition.

Headline Finding 5:

The bank of the future may not be a bank. It is likely that fundamental banking functions will

be disrupted by non-banks eg payments and the overall peer to peer approach. Banks also

are challenged by the legacy of poor brand advocacy whereas the disruptors have very

customer-centric brands that communicate customer enablement.

The Next Steps:

There must be a commensurate pace demonstrated by the regulators to keep up

with the peer-led innovation

Best practice and emerging trends from other markets should be observed and improved on – these might not come from mature markets



Banks need to keep the customer at the centre of what they develop and deliver!

the customer of the future is going to ultimately determine what the bank of the

future looks like.



Digital transformation – how can you operate at the speed of digital to innovate,

grow and drive footfall to your business.

Facilitated and written by: Kunal Jhanji, Oliver Wyman

Expert: Gi Fernando, Freeformers

Headline Finding 1:

Businesses need to define a true omni-channel experience for customers, linking each

channel and delivering a consistent experience across each channel.

Headline Finding 2:

Organisations need to define challenge – comprising of three C’s – Change, Communication

and Culture. Each of these should focus on enhancing the internal set up to ensure that

employees embrace the digital change and deliver against organisation’s objectives.

Headline Finding 3:

A change in the mindset of employees is required and the organisations need to cultivate

and nurture the talent internally to bring about a digital culture within the organization.

Headline Finding 4:

The way customers think about digital is changing and there is a prominent demographic

shift in how customers are liaising with their financial services provider e.g. Digital RMs,

other mobile channels, use of branches for self-help etc.

Headline Finding 5:

Organisations should focus on how digital adds value to a customer experience and

incorporate that thinking into each channel to ensure that customers are able to interact in

a seamless and frictionless way across the various channels.

The development of physical channels should also be based on similar principles.

Next Steps

Nurture talent within your organisations.

Take incremental steps and adopt a ‘lego block’ style of building technology that enables

participation from across the organisation.

Manage change effectively within the organisation and motivate the employees to be a

part of the change.

Define the challenge and communicate the right message both to customers and

colleagues.

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The Findings - Owen James Events · 4/30/2015 · The Findings Thursday 30 April 2015, The Berkeley, London . ... How to work with small, disruptive partners from within a large