D14 - Inspiring Digital Business - Fintech Studio Sessions
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This document summarizes an agenda for a fintech studio session event. It includes: - A list of sponsors for the event, including corporate sponsors and those bringing the event. - An agenda with times and topics to be covered throughout the day-long event, including presentations on the changing financial services industry, using social intelligence, creating secure digital environments, and adapting to change. - Excerpts and slides from some of the scheduled presentations, covering topics like the coming revolution in financial services enabled by new technologies, how successful companies disrupt themselves, and benchmarks for customer experience excellence.
D14 - Inspiring Digital Business - Fintech Studio Sessions
- 1. SPONSORS CORPORATE SPONSOR @digiconx #d14 BROUGHT TO YOU BY
- 2. 2 FINTECH STUDIO SESSION #d14fintech @digiconx @PA_Consulting
- 3. 3 FINTECH STUDIO SESSION: Welcome & Introduction #d14fintech @digiconx @PA_Consulting Kevin O’Shaughnessy, PA Consulting
- 4. 4 #d14fintech What's it like to be in Financial Services at the moment ? Regulation changing Distribution & Products Customers more connected & demand better experience An overload of new developments .. But desire to innovate Companies looking at their business models
- 5. 5 #d14fintech The existing stuff we work with… Internet/Extranet Sites Workplace Portals Wrap Platforms FS Social Media Financial Planning Tools Intranets FS Apps Digital Marketing
- 6. 6 #d14fintech Wearable Technology Big Data Digital Identity Internet of Things Cashless Society Collaboration Personalisation The new stuff we want to get our heads around
- 7. 7 #d14fintech Digital Culture Digital Engagement Digital Enablers Culture: The way in which a company behaves, how it is governed and led. How it manages its strategic development and measures its digital success & performance. Engagement: The experience and opportunities that a company creates using technology to allow its customers, employees, stakeholders and suppliers to engage and transact on and offline. Enablers: To deliver the desired experience and engagement, a company needs a revised suite of capabilities spanning people, process, structure & technology. Putting it together – Engagement on the outside, culture and enablers on the inside
- 8. 8 #d14fintech How we will navigate you through the maze The world around us and coming revolution in FS Mark Thomas, PA Consulting 11.30 11.50 Experience excellence for the connected customer Carol Mc Creadie, Client Service Director, Nunwood 11.50 12.10 Using social intelligence to influence and predict behaviour Nathan Sage, Head of Social Intelligence, PA Consulting 12.10 12.30 Panel Debate Hosted by Gavin Neilson, PA Consulting 1.30 1.50 Creating a secure world for digital to survive & thrive John Skipper, PA Consulting & Colin Mills, Pirean 1.50 2,10 Delivering for customers – why exploration through rapid development is required to enhance customer Robert McGill & Mickael Paris, Standard Life 2.10 2.30 How organisations are adapting to the change Rob Mettler, PA Consulting 2.30 2.45 Don’t forget to take part in our Digital Barometer Survey, either at a PA Showcase stand or go to http://digitalbarometer.paconsulting.com/
- 9. 9 The World around us and coming revolution in FS #d14fintech @digiconx @PA_Consulting Mark Thomas, PA Consulting
- 10. 10 #d14fintech Remember the dotcom hype… 0 20 40 60 80 100 120 31-Dec-97 31-Dec-98 31-Dec-99 Closing share price Amazon
- 11. 11 #d14fintech But now, much of it has turned out to be prescient Sector Iconic casualties Retail Books Borders Travel Thomas Cook Films & Music Blockbuster Photography Films Kodak Cameras Olympus Information Encyclopaedia Encyclopaedia Britannica Source: PA analysis 0 50 100 150 200 250 300 350 31-Dec-97 31-Dec-01 31-Dec-05 31-Dec-09 31-Dec-13 Closing share price Amazon
- 12. 12 #d14fintech We are on the edge of a similar revolution Technology IT Big Data Cloud Machine to machine Mobile Social media Artificial intelligence / Robotics Other technologies Display including 3d Materials Nano-technology 3d printing Genetics Energy The Arms Race (speed of learning) Basis for personalisation Superior Customer Insight Analytics: • Needs • Attitudes • Behaviours • Intentions Superior Customer Interaction • Product • Transaction • Information • Motivation Superior Customer Data Integrating: • Transactional • Non-transactional Basis for analysis Basis for collection of information
- 13. 13 #d14fintech The winners may not be the competitors you expect Similar model, different sector Different model, different sector Same sector, different model / focus Existing competitors Inertia has always been the incumbents’ friend…what if it becomes their worst enemy? 2015 2016-20 2020-30 2030-40 Lloyds TSB AEGON Admiral Aviva HBOS RBS WONGA Directline Sheila’s Wheels Compare the market Go Compare Google Wallet Facebook O2 M&S Bank Tesco Virgin 2014 2013
- 14. 14 #d14fintech Success in self-disruption requires at least the following six elements: The unit should have all the functional skills it needs to succeed, freeing it from reliance on the parent organization, and it must not report to the business or businesses that are being disrupted. For the incumbents to succeed, they will need to react whole-heartedly An autonomous business unit. 1 These leaders have addressed a variety of challenges, especially in the kinds of problems the new growth business will face. They are often necessarily sourced from outside the organization. Leaders who come from the relevant “schools of experience.” 2 This will fund the unit regardless of the fortunes of the core business. A separate resource allocation process. 3 These should not be required to coordinate with or defer to the existing sales organization. Independent sales channels. 4 In most cases it will reflect priorities different from those of the core business. You can expect the new unit to do as well as the core in terms of net profit per dollar of sales, but the formula for generating that profit (such as gross margins or asset turns) must be different. A new profit model. 5 He or she must be willing to spend an inordinate amount of time understanding and guiding the development of the new business and must protect it from the natural desire on the part of managers in the core business to shut it down and appropriate its resources. Unwavering commitment by the CEO. 6
- 15. 15 #d14fintech This sort of change can happen faster than you imagine Models Company Issue Time from peak to problem ‘Widgets vs digits’ Kodak Digital cameras 30 years Newspaper classified ads Craigslist 17 years Argos Internet purchasing 15 years Blockbuster Digital streaming 15 years Encyclopaedia Britannica Wikipedia 11 years ‘Digits vs digits’ Nokia Apple 5 years Apple Android ?? “Most people overestimate what they can do in one year and underestimate what they can do in ten years.” ― Bill Gates Source: PA analysis
- 16. 16 #d14fintech How might this change the landscape for suppliers? 0% 25% 50% 75% 100% New entrants and reinventors Large incumbents Others Source: PA analysis A challenging regulatory environment with a desire to encourage new entrants will increase the likelihood of such a scenario. www.youtube.com/watch?v=njnNVV5QNaA
- 17. 17
- 19. EXPERIENCE EXCELLENCE FOR THE CONNNECTED CUSTOMER Carol McCreadie #d14fintech
- 20. 20 CUSTOMER EXPERIENCE EXCELLENCE STUDY UK, USA and Australia, since 2010 Why Do We Do This? To find out Who To find out How To uncover the Common Elements To help our clients excel How Do We Do This? Scale questions Cross industry comparisons Critical Incident Questioning #d14fintech 20
- 21. 21 WHO ARE THE TOP PERFORMERS? Who are the Customer ExperienceWinners? The Top 10 (UK) 1st 2nd 3rd 5th 6th 7th 9th 10th Position Brand Score 8.25 8.23 8.19 8.18 8.01 8.00 7.98 7.95 7.93 7.90 4th 8th The Top 10 (US) 1st 2nd 3rd 5th 6th 7th 9th 10th Position Brand Score 8.17 7.96 7.88 7.81 7.73 7.64 7.63 7.62 7.60 7.52 4th 8th The Top 10 (Australia) 1st 4th 5th 6th 8th 9th Position Brand Score 7.95 7.95 7.83 7.74 7.53 7.52 7.50 7.45 7.43 7.41 3rd 7th 1st = 2nd #d14fintech 21
- 23. 23 THE SIX PILLARS OF EXPERIENCE EXCELLENCE Personalisation Time & Effort Resolution Expectations Integrity Empathy #d14fintech 23
- 24. 24 EXPERIENCE SIGNATURE Top 10 Experience Signature Personalisation Integrity Time & Effort Expectations Resolution Empathy 8.28 8.13 8.49 7.72 7.79 7.54 #d14fintech 24
- 25. 25 WHICH PILLARS ARE DRIVING THE TOP TEN? Top 10 Pillar Performance vs. Average Personalisation 10% Integrity 14% Time & Effort 9% Expectations 12% Resolution 14% Empathy 14% #d14fintech 25
- 26. 26 PERSONALISATION Tailoring the broad experience to the customer needs in a way that feels right for each customer • Are you passionate about making each customer feel like an individual? • How do you translate this in a ‘digital world’? • Have you put in place enough of the small steps to build an emotional connection with your customers? • What additional steps are needed to connect to your customer online? Experience leaders are: using big data to know their customers individually to drive 1-2-1 conversations #d14fintech 26
- 27. 27 Lush: • Qualification based sales process • Friendly • Problem solving Personalisation Score: 7.77 Personalisation Score: 8.27 Body Shop: • Pressure to buy more PERSONALISATION: BEST PRACTICE #d14fintech 27
- 28. 28 TIME & EFFORT Valuing time, minimising effort in interactions, making it easy for consumers to do business • Have you maximised technology to raise the bar? • e.g. Amazon – ‘frictionless’ customer service • Do your customers feel that their time is well spent when they deal with your business? • Do you make it easy for your customers to do what they need to do, no matter what channel they choose and if they change channel? Experience leaders are: analysing processes from the customer perspective to remove unnecessary barriers #d14fintech 28
- 29. 29 TIME & EFFORT - CLICK & COLLECT #d14fintech 29
- 30. 30 EXPECTATIONS Accurately setting, meeting and exceeding expectations • Do you deliver your brand promise consistently to all your customers? • Are your customers delighted when they deal with your company? Is it easier or more difficult to do this in a ‘digital world’? • Does your company set expectations with care and understand the implications if they are not met? Experience leaders are: consistently exceed expectations via ‘magic moments’ to customers #d14fintech 30
- 31. 31 EXPECTATIONS – U Bank - Australia #d14fintech 31
- 32. 32 EMPATHY Understanding the customer’s circumstances to drive a deeper rapport • Are your employees trained and capable to react to individual customer feelings? • Does your company genuinely care for the customer from the most senior all the way down? • Are your processes flexible enough to respond to individual customer circumstances? Experience leaders are: building an inherent flexibility within their internal culture which empowers their people to react to the customer #d14fintech 32
- 33. 33 EMPATHY - CASE STUDY: #d14fintech 33
- 34. 34 RESOLUTION Turning a poor experience into a great one – putting things right when they go wrong • Process is often the enemy! Do you have the right processes in place to resolve things for the customer quickly and sincerely? • Do you focus on the lifetime value or potential value of the customer when resolving things? • If something does go wrong, do you leave your customer feeling good? Experience leaders are: minimising issues through root-cause analysis and diverting resources to ‘heroic recovery’ for serious problems #d14fintech 34
- 35. 35 A business you can trust, delivers on promises and consistently acts in customers’ best interests • What does ‘the right thing’ mean to your customer? • Do you know what your business stands for? Is this a shared vision across the company? Is it applied to all processes? • 2013 vs 2012 performance Co-operative FS – fell 110 places Starbucks – fell 39 places Amazon – fell 3 places • Slow to build…….quick to fall INTEGRITY Integrity leaders are: making clear , unambiguous statements of intent, delivering consistently at micro and macro levels #d14fintech 35
- 36. 36 INTEGRATING BEST PRACTICE INTO YOUR BUSINESS • Manage via a senior governance group • CEO communications & messaging • Weave into the culture • Regular updates • Central to business briefing • Launch with impact • Closed loop design • Recruit • Train • Build into ‘everybody’s everyday’! Customer at the Heart The Six Pillars as an Experience Framework • Understand • Diagnose • Prioritise • Design Push Metrics & Priorities Across the Business Implement & Improve #d14fintech 36
- 37. 37 THANK YOU! Personalisation Time & Effort Resolution Expectations Integrity Empathy Many more case studies available at nunwood.com #d14fintech 37
- 38. 38 Social Intelligence : Influencing & predicting customer behaviour #d14fintech @digiconx @PA_Consulting Nathan Sage, PA Consulting
- 39. 39 #d14fintech What is social media? It’s just life that people have chosen to digitally share Cartoon by John Atkinson ©2011-2014 http://wronghands1.wordpress.com/2013/03/31/vintage-social-networking/
- 40. 40 #d14fintech Scientific (Googled) definition Social Intelligence is the mental ability to understand the motives, emotions, intentions and actions of others and to motivate and influence the behaviour of (groups of) people
- 41. 41 #d14fintech Combining the two creates a new playing field in the war for customer centricity and better intelligence Behave Feel Connect Predict personality & behaviours (group or individual) Trusted influence and peer recommendation
- 42. 42 #d14fintech Social intelligence is the most significant growth opportunity for the next 5 years? 98% predictable 78% influential $200 million reward
- 43. 43 #d14fintech Timeline: An illustration of key life events as they’re experienced on Twitter These Twitter conversations are excerpts from real, and randomly selected Twitter conversations about each theme. ‘Trying to think of what legal career I would like to pursue when I graduate. #toomanyoptions 07-Apr-2014 ‘So excited to start learning to drive on Thursday!’ 05-Apr-2014 ‘My plan for the summer is to buy a house, I will succeed!’ 30 mins ago ‘So happy I'm starting my own business this may! #ceo’ 02-Apr-2014 17:59 PM ‘Oh yay!! A little fun in the sun, drinking, laughing, and fun girls weekend! #3moredays xo ’ 17 hours ago ‘Oh my Gosh. He proposed, we're getting married!’ 17- Feb-2014 16:48 PM ‘We're Planning A Baby!’ 02-Dec-2013 17:55 PM ‘Family holiday planning roll on September x’ 09- Mar-2014 05:50 AM ‘Yes, it's true. I am retiring at the end of the month’07-Dec-2013 05:48 AM ‘I have been busy taking care of my husband after his first hip replacement.’ 05-Mar-2014 15:22 PM ‘I had to plan my husbands funeral for Christmas.’ 05-Feb-2014 20:04 PM At Leeds Uni have open day with daughter. Already empty nest pangs but must let my girl fly... 12-Oct- 2013 06:36 AM
- 44. 44 #d14fintech PA identifies 60,000 people interested in buying a car in the UK over the past 3 months. Only 111 have had their need for finance satisfied providing a significant customer targeting and conversion opportunity for the bank 1,236 Mentions of car purchasing and / or finance 111 Mentions of car finance / loan and a bank 60,000 Tweets expressing intent to purchase a car Number of mentions relating to buying a car on Twitter over the last 6 months “Got to get my car MOT'd for the first time this week, timed it all wrong because I'm looking at new cars at the weekend!! #fail” 08/07/13 “Gonna have to get a bank loan or get a car on finance :)” 12/05/13 “If you look on a car dealership site it usually shows you whether you can buy it outright or whether they offer finance...” 08/07/13 “#Santander need to hurry up and send through my loan paperwork....need to get this car sorted! ...” 08/07/13
- 45. 45 #d14fintech PREDICTABILITY Anticipating human behaviour will become the norm The power of the crowd will challenge the power of governments and organisations The battle for influence and control will be a primary factor for success INFLUENCE Predictability, power, and influence THESE WILL CHANGE OUR LIVES FOREVER… POWER
- 46. 46 #d14fintech Predictability, power, and influence OF ALL DATA IS CREATED BY CONSUMERS 75% Anticipating human behaviour will become the norm 1. Businesses will use mapped behaviour patterns to predict consumer needs and identify new trends as they emerge 2. Years of big data and online activity will allow organisations to understand consumers intimately and target them precisely Billions of people now record and share their lives so openly on social media. This information can be analysed to establish norms, which in turn reveal interests, attitudes and beliefs.
- 47. 47 #d14fintech The power of the crowd will challenge the power of governments and organisations 1. Businesses will use crowd thinking to co-create products and services, and encourage product acceptance 2. Consumers will create demand via the crowd and the traditional sales model will collapse 3. Corporate agility will become the key factor for success as barriers for new market entrants continue to shrink 4. Organisations and governments will create their own influential crowds to counter the power of consumer-led crowds PEOPLE POWER During 2010 the total number of Facebook users in the Arab world increased by 78% to 21.3 million Predictability, power, and influence
- 48. 48 #d14fintech The battle for influence and control will be a primary factor for success 1. Tribes will form around people of influence with global reach & power. This will diminish country and cultural influences and generate new centres of power 2. Governments will start to lose influence to individuals and will legislate to protect and regain power 3. Cybercrime will be the new crime bonanza, creating an economic force so strong that traditional combat tactics will have zero impact Predictability, power, and influence (23) The number of people following the pop star Justin Bieber is the same as the population of SPAIN
- 50. 50 FINTECH STUDIO SESSION PANEL DEBATE #d14fintech @digiconx @PA_Consulting
- 51. 51 CREATING A SECURE WORLD FOR DIGITAL TO SURVIVE AND THRIVE #d14fintech @digiconx @PA_Consulting
- 52. 52 #d14fintech Thriving in a digital world. How can security help? Safe and simple P r o p o r t i o n a t e . I n t u i t i v e . F a s t . #d14fintech 52
- 53. 53 #d14fintech Thriving in a digital world. How can security help? Per sonal and tr usted W h a t c u s t o m e r s w a n t . H o w t h e y w a n t i t . W h e r e t h e y n e e d i t . #d14fintech 53
- 54. 54 #d14fintech Richer functionality More options. More opportunity. More bus ine s s . Thriving in a digital world. How can security help? #d14fintech 54
- 55. 55 #d14fintech Thriving in a digital world. How can security help? #d14fintech 55
- 56. 56 #d14fintech Thriving in a digital world. How can security help? #d14fintech 56
- 57. 57 #d14fintech Thriving in a digital world. How can security help? Case study #1 Service transformation for a leading health, general and life insurance multinational. Case study #2 Secure online banking for international Wealth and Investment Management organisation. Business objectives: • Provide secure access to service portals for employees, customers, brokers and financial advisors. • Transform application and service delivery platforms. Better enable rapid go-to-market initiatives for new services. • Introduce customer self-care. • Deliver strong authentication and an extensible platform for integrating future technology. Business objectives: • Deliver secure online banking services, compliant with the requirements of the Monetary Authority of Singapore. • Implement enhanced security controls with new 2FA mechanisms, end-to-end encryption, out of band transaction confirmation and secure/automated issuance of passwords and tokens across multiple devices. • Provide seamless customer migration from existing account and security systems. #d14fintech 57
- 59. #d14fintech Delivering for Customers Robert McGill & Mickael Paris 59
- 60. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties #d14fintech 60
- 61. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties #d14fintech 61 13m Drop in living standards £320bn Savings Gap 7.5m Advised to direct 13m Looking for help (MSE) 61
- 62. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Progress over perfection Small expert dedicated team Light governance Co-creation No ideologies or HIPPOs Autonomous with support Healthy tension Small iterations #d14fintech 62
- 63. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties #d14fintech 63
- 64. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties #d14fintech 64
- 65. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties #d14fintech 65
- 66. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties #d14fintech 66
- 67. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties #d14fintech 67
- 68. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties #d14fintech 68
- 69. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties success challenges #d14fintech 69
- 70. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Always know why Don’t guess Don’t want everything Invest in people #d14fintech 70
- 71. Enabling change, enabling success Mickael Paris 71 #d14fintech
- 72. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Why Rob and I should hate each other #d14fintech 72
- 73. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Why we don’t #d14fintech 73
- 74. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Change of pace Before After • Adding GWT verification code = 6 months • Removing a banner from secured site = 9 months • Adding Multivariate Testing (MVT) tags on all pages = 1 week • Making half a site mobile responsive = 1 month 74 #d14fintech 74
- 75. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Change of strategy 14 years and barely any change outside of colouring… #d14fintech 2000 2005 MyProducts added 2007 Doc centre added 2010 2011 Rebrand Now 75
- 76. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Change of strategy …but, being faster now allows us to have a real customer-driven strategy #d14fintech 76
- 77. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Change of approach Having an “omni-department” team allows us to move from regulatory content updates to on-going website optimisation. Or when a few numbers can speak a thousand words: Being data-driven rather than slaves to red-tape: MVT #d14fintech 77
- 78. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties What the future holds for us #d14fintech Move fast with proof of concepts 78 In big organisations the introductions of new technologies and new services can be time consuming and resource intensive. However since we changed our way of working: MVT: 3 months from needs identification to 1st test Web Chat: 2 months from sign-off to live date Coming soon: Phone/email/text re-targeting: Contacting People who abandoned a purchase Online to offline tracking: Understanding which online activities are driving phone sales
- 79. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties What the future holds for us Now we are set-up and geared up for change we want to keep the momentum going and transform Standard Life from a nearly 200 years old unmovable beast to a leading e-business company. • Online segmentation: “Give me what I’m interested in…” • Behavioural targeting at the individual level: “…what I need…” • Becoming device agnostic:”…when and how I want it.” We also want to become the place to go to for financial guidance by: • Developing new tools • Developing new apps • Create the first “real” online guidance platform 79 #d14fintech 79
- 80. Confidential Restricted – Not to be disclosed beyond authorised roles within Standard Life group or authorised third parties Questions 80 #d14fintech 80
- 81. 81 How organisations are adapting to the change #d14fintech @digiconx @PA_Consulting Rob Mettler, PA Consulting
- 82. 82 #d14fintech The world is changing and creating a new type of business… Digital Culture Digital Engagement Digital Enablers © PA Knowledge Limited 2014
- 83. 83 #d14fintech So where are others and where are you… Dabbling in digital Digitising today Digital tomorrow • No channel integration • Heavily marketing biased • Me-too services • Minimal desire to change • Minimal people with digital skills • Multi-channel e.g. on-line, mobile and phone • Some new digital customer services • Self service, zero-touch transactions • Have a digital strategy • Digital operations added to organisation • Omni-channel operations Major growth and new revenues • Business strategy is digital strategy • Organisation re-structured to be digital – new operating models 0 1 2 3 4 5 6 1 2 3 4 5 6 7 © PA Knowledge Limited 2014
- 84. 84 #d14fintech So where are others and where are you… 19% 22% 25% 16% 10% 4% 3% 10% 0% 2% 9% 19% 31% 29% 0% 5% 10% 15% 20% 25% 30% 35% Digital Dabbling (1) 2 3 4 5 6 Digitising Tomorrow(7) 32. Where are you now? 33. Where do you want to be? Barometer data © PA Knowledge Limited 2014
- 85. 85 #d14fintech So where are others and where are you… 17% 21% 27% 17% 10% 4% 3% 7% 0% 2% 7% 19% 33% 32% 0% 5% 10% 15% 20% 25% 30% 35% Digital Dabbling (1) 2 3 4 5 6 Digitising Tomorrow(7) 32. Where are you now? 33. Where do you want to be? 12% 24% 21% 31% 7% 2% 2% 5% 0% 2% 2% 19% 45% 26% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Digital Dabbling (1) 2 3 4 5 6 Digitising Tomorrow(7) 32. Where are you now? 33. Where do you want to be? Barometer data © PA Knowledge Limited 2014
- 86. 86 #d14fintech We clearly understand how digital will transform our business/institution dddddd 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree 15% 24% 29% 21% 11% 7% 21% 21% 43% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 87. 87 #d14fintech We have restructured our business/institution in line with our digital ambition dddddd 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree 30% 32% 22% 10% 6% 10% 50% 26% 14% 0% 0% 10% 20% 30% 40% 50% 60% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 88. 88 #d14fintech We are using digital to target new customers with new propositions dddddd 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition • Paperless, branchless and card less, bank • Uses mobile as the key device for banking. • Uses social scores to determine pricing and access to products. • Integrated timeline to show customers the impact of their life on their spending habits We are using digital to target new customer with new propositions 31% 27% 21% 15% 6% 8% 38% 27% 24% 3% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42) Source: Moven website
- 89. 89 #d14fintech What is the driving force for digital change for your business/institution… 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation What is the driving force for digital change in your business/institution 79% 46% 31% 12% 49% 16% 5% 90% 50% 19% 26% 50% 14% 5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Customers Competitors Employees Shareholders Market opportunities Regulation Other Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 90. 90 #d14fintech Who is driving digital inside your business/institution? 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation 19% 13% 26% 12% 5% 5% 20% 0% 5% 10% 15% 20% 25% 30% The CEO The board Marketing IT Operations Customer service Other What is the driving force for digital change in your business/institution Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42) Source: www.retail-week.com (Photographer Jason Alden) Source: John Lewis website
- 91. 91 #d14fintech We deliver a seamless integrated experience to our customers 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation We deliver a seamless integrated experience to our customers across channels 36% 29% 23% 9% 4% 26% 36% 24% 10% 5% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 92. 92 #d14fintech We use digital innovations to improve the customer experience 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation 21% 36% 23% 13% 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We use digital innovations to improve the customer experience 23% 35% 22% 14% 7% 12% 48% 14% 19% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42) Source: Barclays website Source: Apple ITunes
- 93. 93 #d14fintech Digital disruption is making its way across the enterprise 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation We use digital innovations to improve the customer experience 63% 34% 21% 14% 26% 43% 2% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other We have adapted our processes for the digital world in the following areas 61% 31% 21% 13% 25% 42% 2% 64% 48% 29% 21% 17% 45% 0% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42) Source: First Direct website
- 94. 94 #d14fintech Governance needs adapting… 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition We use digital innovations to improve the customer experience 32% 32% 20% 11% 4% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree Our existing governance models are suitable for digital business 33% 32% 20% 11% 4% 29% 38% 19% 14% 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 95. 95 #d14fintech Importance vs. implementation of big data (part 1) 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation We use digital innovations to improve the customer experience 63% 34% 21% 14% 26% 43% 2% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other We have adapted our processes for the digital world in the following areas 61% 31% 21% 13% 25% 42% 2% 64% 48% 29% 21% 17% 45% 0% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other Overall Average Financial Services 14% 3% 14% 33% 36% 5% 7% 5% 29% 55% 0% 10% 20% 30% 40% 50% 60% It is not important (1) 2 Not sure (3) 4 Very Important for the future (5) Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 96. 96 #d14fintech Importance vs. implementation of big data (part 2) 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation We use digital innovations to improve the customer experience 63% 34% 21% 14% 26% 43% 2% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other We have adapted our processes for the digital world in the following areas 61% 31% 21% 13% 25% 42% 2% 64% 48% 29% 21% 17% 45% 0% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other Overall Average Financial Services 38% 34% 17% 8% 3% 29% 40% 26% 5% 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Not used (1) 2 Currently used by some areas of the business (3) 4 Currently used throughout the business (5) Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 97. 97 #d14fintech Importance vs. implementation of mobile (part 1) 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation We use digital innovations to improve the customer experience 63% 34% 21% 14% 26% 43% 2% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other We have adapted our processes for the digital world in the following areas 61% 31% 21% 13% 25% 42% 2% 64% 48% 29% 21% 17% 45% 0% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other Overall Average Financial Services 11% 2% 9% 27% 50% 7% 2% 10% 29% 52% 0% 10% 20% 30% 40% 50% 60% It is not important (1) 2 Not sure (3) 4 Very Important for the future (5) Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 98. 98 #d14fintech Importance vs. implementation of mobile (part 2) 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree We have restructured our business/institution in line with our digital ambition 81% 45% 31% 12% 51% 15% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Customers Competitors Employees Shareholders Market opportunities Regulation We use digital innovations to improve the customer experience 63% 34% 21% 14% 26% 43% 2% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other We have adapted our processes for the digital world in the following areas 61% 31% 21% 13% 25% 42% 2% 64% 48% 29% 21% 17% 45% 0% 0% 10% 20% 30% 40% 50% 60% 70% Marketing Sales/conversion Product/service in life Product supply chain New product development Customer service Other Overall Average Financial Services 24% 26% 25% 17% 8% 12% 38% 33% 14% 2% 0% 5% 10% 15% 20% 25% 30% 35% 40% Not used (1) 2 Currently used by some areas of the business (3) 4 Currently used throughout the business (5) Overall Average Financial Services Barometer data © PA Knowledge Limited 2014 – Blue: Overall Respondents (326) Orange: Financial Services (42)
- 99. 99 #d14fintech This won’t be easy, but nothing that matters is easy… 13% 24% 29% 23% 11% 0% 5% 10% 15% 20% 25% 30% 35% 1 2 3 4 5 Disagree Slightly Disagree Neutral Slightly Agree Agree Organisation culture/structure Lack of Digital Expertise Cost and Investment Legacy/Technological Constraints Limitations due to strategy Leadership buy-in Governance Lack of agility Prioritisation/focus/time Established market dynamics “Inertia in the parent organisation” “Understanding and buy in from SMT” “Lack of digital expertise to drive the investment” “Getting the leadership team to believe and act” “Getting agreement on the best way forward” Barometer data © PA Knowledge Limited 2014
- 100. 100 #d14fintech The new world’s exciting, it’s changing, transform and focus on the customer Digital Culture Digital Engagement Digital Enablers Look at this holistically, digital on the outside, digital on the inside The world’s changing, create a business for tomorrow’s world Focus on the customer © PA Knowledge Limited 2014
- 101. 101 Thank you for listening #d14fintech @digiconx @PA_Consulting