© 2011 Deloitte MCS Limited. Private and confidential.

For information please contact

Neil Tomlinson at Deloitte

ntomlinson@deloitte.co.uk

12 September 2011

The Fourth Dimension: Building a Customer-Centric organisation

© 2011 Deloitte MCS Limited. Private and confidential.

The financial services marketplace has changed, customer expectations have

changed, and there is an increasing tension between organisations’ strategies and

customers’ actions

Presentation agenda:

• Drivers forcing new thinking and elevating customer experience on the Boardroom Agenda

• Changes in the marketplace over the last 2-3 years

• How providers are rethinking customer strategies

• The tension between organisations’ customer strategies and customer behaviours

• Practical steps to consider in order to drive a greater level of effective customer experience management

Synopsis

© 2011 Deloitte MCS Limited. Private and confidential.

An increasing number of complex change drivers are forcing new thinking

Changing market dynamics are forcing banks to intensify competition around

customer experience management (as a way to differentiate)

Customer

Experience Management

Increased cross selling

More sophisticated

customer segmentation

Exploiting changes required

under regulation

Increased use of social

media and digital

capabilities

New technology and multi-channel

capability

New product suites (capital

light)

Increased competition

A more modest appetite for risk

A higher cost of funding

New regulatory requirements, including the need greater liquidity and capital

adequacy e.g IBC/OFT

Shifting customer expectations, demands and behaviours

Threat from new entrants and the evolution of some existing players

Market dynamics...

...are constraining growth...

Banks’ lending

opportunities

restricted

Fewer non-interest

income

opportunities

As capital and

liquidity issues

remain, income

growth is subdued

Customer

profitability struggles

...competition for

profitable customers

intensifies

...driving new customer strategies

Significantly

increased cost of

compliance