the findings - owen james events · 4/30/2015 · the findings thursday 30 april 2015, the...
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Thursday 30 April - The Berkeley Hotel, London SW1
Organised by
The Findings
BANK & BRAND DISTRIBUTION OF RETAIL FINANCIAL SERVICES
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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— 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.
.
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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
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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.
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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.
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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.
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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.
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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
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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.
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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
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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
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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.
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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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