Revenue AgenciesStepping in the Digital Footprints of Banks and Insurers

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Revenue agencies the world over are on a journey towards delivering public service for a digital future. To stay on route, it can be helpful to analyze the footprints of industries that are further down the track. Banks and insurers are particularly relevant, with many successfully using digital to improve customer loyalty, profitability and operational processes. They have also faced many of the same challenges as revenue agencies, from the complexity of millions of transactions and exchanges to a service model overly-reliant on call centers and offices.

The key difference at this point is how far financial services have already changed the nature of their interactions with consumers: going deeper with online, mobile and social, while transforming phone and branch services to complement the digital mix and exceeding customer expectations across a number of these metrics.¹

So what can revenue agencies learn from this experience? Some of the key answers are in three trends shaping the financial services industry and echoed in the revenue industry as confirmed by Accenture’s 2015 Digital Taxpayers research.

Three trends to track from the progress of the financial services industry

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With so much emphasis on automation and self-service, some revenue agency leaders have assumed digital transformation will result in fewer interactions with taxpayers. But the experience from banking and insurance shows the opposite is true (Figure 1).

As services become more streamlined, integrated and personalized, agencies can actually expect interactions to rise. Why? Because better services increase taxpayer engagement as well as demand for more new services, boosting interactions.

1. Prepare for more (not less) interaction

Figure 1. Digital channels have significantly increased the number of overall banking interactions

20

15

10

5

0

25

How many times do you usually interact/get in touch with your main bank, on monthly basis, using the methods listed?(Provide number of interactions)

Other digital banking** Telephone call centre Social media Branch

Mobile/tablet bankingCash machine/ATM Internet banking

*Base = 9,000 (Total retail banking respondents in 12 key markets: Australia, Brazil, Canada China, France, Germany, Indonesia, Italy, Spain, UK, US** Other Digital Channels = Video chat and instant messaging

BrazilIndonesiaUSGermanyCanadaItalyUKFranceAustraliaSpainEmergingMatureTotal China

9

6

2

3

1

23

6

7

4

2

3

1

24

7

2

3

2

15

8

4

11

15

7

4

2

2

16

7

5

21116

8

4

3

1

18

10

4

21

18

8

4

3

1

18

9

5

3

2

21

7

5

4

2

21

21

8

4

21

16

7

4

3

1

117

5

3

3

2

2

1

17

4

A similar story is already unfolding in the revenue industry. Our research shows that taxpayers who use digital channels contact their agency more often: 31 percent of digital users contact their agency more than three times a year, versus 19 percent of non-digital taxpayers. To cope, revenue agencies should plan on a digital service that can automate the majority of simple interactions, freeing staff for the high value, high touch interactions (see next trend. Today only 47 percent of taxpayers say they use digital channels to manage simple interactions and this varies a lot from one country to another (figure 2).

La Caixa, Spain’s third largest financial services firm, has developed a service called Real Time Decision to improve the customers’ interaction with La Caixa’s Home Banking service. The technology helps consistently make the best possible decisions in real time, automatically and using self-learning techniques, making use of all the information the bank has available on the customer. The bank will offer customers products that match their interests on the basis of real-time analysis.²

Figure 2. Taxpayers using a digital channel to manage simple interactions by country

Source: Accenture Research Analysis; Accenture Taxpayer SurveySample: All respondents who have performed the task

ITUSUKIEESAUFRNZNLSGDKOverall DE

26%

34%

43%44%45%45%

56%57%58%

71%76%

47%

24%

5

Fewer than 2 out of the average 17 monthly customer interactions are branch visits.

Phone banking accounts for just 1 in 17 transactions.³

Accordingly, banks are turning many transactional branch roles into multi-skilled advisory positions.

But 22 percent of banks believe they won’t have the branch skills needed in coming years – and this skills gap could be much higher.⁴

Digital banking services have resulted in a steep decline in the number of visits to branches. Some in the banking industry have seen this as the end for the branch and phone workforce.

The reality, however, is that while banking customers choose mobile and online for transactions and simple needs, they still want high-touch, in-person services for complex needs such as buying a home. The implications for the workforce have been significant. Banks are turning many transactional roles at branches into multi-skilled advisory positions. But this isn’t an easy task. Some 22 percent of banks believe they won’t have the branch skills needed in coming years – early indications are that the skills gap could be much higher.⁵

Similarly, taxpayers will continue to require support to handle complex issues. Staff needs to be acquired or developed to act more as problem-solvers than process facilitators. The lesson from banking is to start planning early to mitigate the risks of a similar skills shortfall. Revenue agencies will need multi-skilled, problem-solving agents to manage the compliance of taxpayers, and to proactively engage with them.

Capital One, a major US financial services firm, is augmenting its branch network with Capital One 360 Cafés – community spaces in which visitors can manage their banking, meet with bank associates, or enjoy coffee and Wi-Fi. There is more banks can learn from the likes of Apple and Starbucks – especially with the role of their employees.⁶

2. Plan for high touch / high value interactions

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Another trend from the financial services industry is about first-time resolution: more than 80 percent of consumers who switched banks due to poor service say they could have been retained if their issue had been resolved on their first contact with the bank.⁷ Of course, taxpayers can’t switch revenue agencies. However, taxpayers will quickly abandon digital services unless they are quick, easy and useful (figure 3).

First time resolution is crucial, not only for simple automated interaction but also for more complex compliance issue, and across any channel.

Remember that taxpayers are not just like bank customers, they are bank customers: they expect a seamless user experience across whichever is their preferred channels.

The top reason taxpayers give for choosing to phone or visit their tax agency is speed – 67 percent and 52 percent respectively believe these traditional channels are the fastest way to get the information they need.⁸

Strong integration and high personalization across channels are key to ensuring taxpayers have a seamless experience and resolve issues in the most cost effective way. Improving

the taxpayer experience is the only route to higher taxpayer satisfaction – something revenue agencies know leads to greater compliance.

In Italy, Allianz SE, the world’s largest insurance company,⁹ has launched ‘Allianz1’, which brings all its services and options together, allowing the freedom to personalize policies on the go.¹⁰ It has traditionally relied on a large branch network, and while Allianz1 means everything can be done digitally, it has not abandoned its physical presence. Instead, its branches have been reinvented, complete with huge touchscreen tablets and face-to-face expertise.¹¹

3. Meet customer expectations on first time resolution, across any channel

7

4 out of 10 taxpayers who phoned their revenue agency had already tried to find the required information or service online beforehand – but failed.

One third of those who visited the revenue agency in person had already tried to use digital services beforehand but struggled with complexity.

Three-quarters of taxpayers have visited their revenue agency’s website, but less than half found what they were looking for.

Figure 3. Reason for switching from digital to non-digital channels when interacting with revenue agencies

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Mobile: the neglected channel

Figure 4. Interest in mobile access

Interest in using mobile devices

Source: Accenture Research Analysis; Accenture Taxpayer Survey

File your tax return

45% 47%

Apply for new taxes

or taxdeductions

52%

Resolvean issueyou have

45%

Pay yourtax

50%

Access yourpersonalaccountdetails

52%

Accessonline

servicesrequiring

log-in

55%

Findinformation

on taxobligations

and tax topics

Around half of taxpayers would like to use their mobile devices for a broad range of tax agency dealings.

But when asked about their satisfaction with several aspects of digital self-service, mobile access ranked lowest – fewer than 1 in 5 were very satisfied.¹²

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Taxpayers expect their interactions with tax agencies to mirror their experience with other institutions, such as banks and insurance companies. Revenue agencies can benefit from examining the financial services industry: these serve as a guide to improving the taxpayer experience, and as an indicator of the impact that digital can have on their organizations.

Accenture’s experience with its financial services clients shows that the digital world will bring increased taxpayer interaction, expanded mobile services, a focus on first time resolution, and a more highly-skilled workforce to support high value / high touch exchanges. This will be tough to deliver on, but getting this right will also achieve greater taxpayer certainty and increased compliance. Personalized design services offer tremendous scope to improve certainty. Add this to a seamless, omni-channel user experience and compliance will certainly increase. To some, that is a distant destination. But there are shortcuts on this journey – by following the right footsteps revenue agencies can catch up sooner than anyone expects and deliver public service for the future.

References1. “FIS Consumer Banking PACE Index

2015”, Fidelity National Information Services, 2015

2. “Banking Customer 2020”, Accenture, July 2015

3. Ibid.

4. “Branching out: The case for the human touch in banking”, Accenture, 2015

5. Ibid.

6. Ibid.

7. “Banking Customer 2020”, Accenture, July 2015

8. Accenture Taxpayer Survey 2015

9. “The World’s Biggest Public Companies,” 2015 Ranking, Forbes http://www.forbes.com/global2000/list/#industry:Diversified%20Insurance

10. Allianz, https://www.allianz.com/en/press/allianz-journal/edition-01-15/150201_have-a-nice-day

11. “Allianz’s Digitalization: Insuring For the Future”, Handelsblatt, 9 March 2015 http://www.slideshare.net/decarlimarco/allianz-brand-relationship-hub

12. Accenture Taxpayer Survey 2015

About the researchThe Accenture Global Taxpayers Survey 2015 was conducted in June/July 2015 among 6,500 taxpayers aged 18+ who have contact with the national revenue agency in their country. The online survey was executed by Market Knowledge Online (MKO) in twelve countries: Australia, Denmark, France, Germany, Ireland, Italy, Netherlands, New Zealand, Singapore, Spain, the U.K. and the U.S. We surveyed 500 taxpayers in each country, apart from in the U.S. where the sample was 1,000. Respondents were surveyed in their local languages, with English used in Singapore. Respondents included employees, retirees, the self-employed, and small business owners.

Digital taxpayers: Taxpayers who had digital contact with their tax agency in the last 12 months. This could be only digital contact or a mix of digital and non-digital contact

Non-digital taxpayers: Taxpayers who have only used non-digital channels to interact with their tax agency in the last 12 months.

ContactDavid ReganManaging Director – Health & Public Service, Revenue Industry Lead

david.regan@accenture.com

About Delivering Public Service for the FutureWhat does it take to deliver public service for the future? Public service leaders must embrace four structural shifts – advancing toward personalised services, insight-driven operations, a public entrepreneurship mindset and a cross-agency commitment to mission productivity. By making these shifts, leaders can support flourishing societies, safe, secure nations and economic vitality for taxpayers in a digital world – delivering public service for the future.

About AccentureAccenture is a leading global professional services company, providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Combining unmatched experience and specialized skills across more than 40 industries and all business functions—underpinned by the world’s largest delivery network—Accenture works at the intersection of business and technology to help clients improve their performance and create sustainable value for their stakeholders. With approximately 373,000 people serving clients in more than 120 countries, Accenture drives innovation to improve the way the world works and lives. Visit us at www.accenture.com.

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