The other day, I stopped by my bank’s ATM to get some cash. After entering my card and PIN and while waiting for my money (during which I was a captive audience), I was presented with an ad for a new service from the bank. Unfortunately, the ad’s call-to-action was a message telling me to call the bank’s 1-800 number to find out more.
I had just encountered one of the broken or inadequate cross-channel experiences that millions of customers face every year.
This is a lose-lose situation: In this case, the bank knew — or should have known — a heck of a lot about me as a customer, yet it failed to use context* to design a better experience and guide me seamlessly across touchpoints. And as a result, the bank also failed to cross-sell me any products or services.
Forrester defines cross-channel behavior as any instance in which a customer or prospect moves from one touchpoint to another when completing an objective. Today, cross-channel goes way beyond online-to-offline transitions; going forward, these interactions will only increase in frequency and importance. Digital executives at banks are left with a tangle of customer journeys across various touchpoints (see image below).
A recent Forrester survey found that business leaders in the financial services industry (FSI) saw 34% of revenues in 2015 generated through digital products and services or products sold online. Their expectation is that this digital quotient will surge to more than half of their business by 2020, leading to a digital arms (and capabilities) race against a new breed of competitor. JP Morgan CEO Jamie Dimon accurately sums up the new competitive dynamic when he notes that “there are hundreds of startups with a lot of brains and money working on various alternatives to traditional banking.”
Our inaugural invitation-only summit in Singapore on Friday, April 15 will bring together an intimate group of senior executives from banks, insurance companies, and fintech firms to share Forrester’s latest FSI digital business research and facilitate a discussion with industry leaders. Our team of esteemed analysts will lead the discussion; here is a snapshot of the topics that will be presented on the morning of the summit:
Frederic Giron (Vice President and Research Director serving CIOs – Singapore): Accelerating Digital Business In Financial Services
Oliwia Berdak (Senior Analyst serving eBusiness and channel strategy professionals – London): How To Organize For Digital Financial Innovation
Randy Heffner (Vice President and Principal Analyst serving application development and delivery professionals – Dallas): APIs Take Center Stage In Financial Services
Games of buzzword bingo and comparisons of on-stage role-play to 1980s’ pornography acting…today’s comments on Twitter prove that it takes guts to face the sometimes cruel Finovate crowd. But if you want to measure the current beat of banking, wealth management, insurance, and startup hearts, there’s no better place than Finovate. Here are a few reflections on Finovate Europe 2016:
Robo-advice is all the rage. Just when blockchain made it into a Dilbert cartoon, it disappeared from the Finovate stage. The only mention of cryptocurrencies was during Ledger’s presentation of its “hardware wallets for decentralised applications” (bitcoins, basically). This is not a bad thing; Forrester advice is to maintain a healthy level of scepticism. Finovate isn’t the place to prove blockchain’s purported capabilities. We’ve also moved away from personal finance management (fondly called PFM), mobile payments, digital wallets. If you want to be in vogue, you now need to pay attention to digitising investment strategies, biometric authentication and contextual engagement. Apart from the international-payments startup Valuto, this year’s Best of Show winners (Capitali.se, DriveWealth, SwipeStox, EyeVerify, IDscan) all fall under the first two themes.
Over the past seven years, mobile banking has gone from little more than an extension of online banking to what one digital banking executive now calls “the most important part of my job.” eBusiness and channel strategy professionals at banks are under intense pressure to differentiate by offering mobile features, content, and experiences that meet — or exceed — customers’ needs and expectations.
To help executives and digital leaders better understand where mobile banking is today — and where different banking providers stand in terms of their mobile offerings — Forrester conducts an annual mobile banking benchmark. This year, we evaluated 41 different banks from more than a dozen different countries across four continents. We recently published the findings in our 2015 Global Mobile Banking Benchmark report.
At Forrester’s Forum For Technology Leaders in Lisbon (June 2-3), Marcello V. Ronco, Senior Vice President and Head of Core Banking Production Line of UniCredit Business Integrated Solutions (UBIS), will be speaking about the bank's BT transformation journey and, in particular, its mobile banking initiative. Marcello is co-leading with Marketing Directors within the organization the restructuring of UniCredit Retail in Italy, Germany and Austria, to realize the company's ambition to become a truly digital omni-channel bank. In his session, Marcello will explain how to change a traditional IT department so that it is set up to support a modern multichannel bank, and why IT plays a strategic role to ensure the right level of customer service through mobile banking.
As I prepared for my role as Forum Chair, I spoke to Marcello about his views on the age of the customer and the impact it has on financial services organizations such as UniCredit. Here is what Marcello shared with me, and I hope you will enjoy his answers as much as I did.
Q: How is the age of the customer impacting your industry (financial services) and the solutions provided by UniCredit Business Integrated Solutions?
Hot off the presses: We’ve just published our 2014 US and Canadian Bank Digital Sales Benchmark reports, in which we assess the public websites of the five largest retail banks in each country — as well as their mobile sites and downloadable apps for smartphones and tablets. Our benchmark looks at a range of criteria across four categories: discover, explore, buy, and onboard (see image below).
Read the full reports by clicking on the following links:
Here are some of the findings from the research:
Bank of America narrowly edges out the competition to take the top US spot. For the second year in a row, Bank of America earns the highest overall score among the five largest retail banks. The firm excels by simplifying the online application process (it takes just a few minutes and guides the user with clear feedback and progress indicators) while supporting digital shoppers with chat and click-to-call options. At the same time, Bank of America enables easy cross-channel shopping for digital researchers who want to move offline to apply, with branch appointment scheduling available online.
Now we’ve taken a look at 2015 and predicted a dozen ways digital banking will change in the coming year.* At the center of these predictions is what Forrester calls the age of the customer: A 20-year business cycle in which the most successful enterprises reinvent themselves to systematically understand and serve increasingly powerful customers. To succeed in the age of the customer, digital bank executives must work with partners across their organizations to use business technology — which Forrester defines as technology, systems, and processes to win, serve, and retain customers — to deliver more compelling customer experiences to bank customers.
Personally, I can’t wait. Which is why I’m delighted to offer up Roland’s answers to some of our pressing questions – right now.
I hope you enjoy what he has to say and I look forward to seeing some of you in London!
Q: When did your company first begin focusing on the customer experience?Why?
It is always important to us that our customer experiences DiBa in the way that we promise it. We want to turn our customers into fans, and this is something that we work on everyday – for over 8 million customers. We would like to make satisfied customers feel inspired, and unsatisfied customers inspired once again.
I love Europe. I especially love the fact that in a very real sense there is no “Europe” as such: The UK experience is not the German experience, which is not the French experience, which is not the Italian experience, and so on.
Yet all of these countries are so close together that once I’m over there, I can visit a variety of very different cultures and architectures more easily than I can travel from Boston to Denver. And in any given city, just walking between buildings from one business meeting to another can make me feel like I’m on vacation. Then there’s the food . . .
Although European variety is amazing, it can also create challenges. On a recent trip, I was in London, Rome, Milan, and Budapest within a two-week period. That often brought me into contact with people in service industries — like taxis, restaurants, and hotels — who had very different ideas of what “service” means than I do.
I began to wonder: Do the locals also find some of this service subpar, or am I just being a parochial American? As it turns out, our recent research shows that European customer experience as judged by local customers does vary wildly depending on country and industry, ranging from truly great to truly awful.
Which is one reason why I’m so excited by Forrester’s upcoming Forum For Customer Experience Professionals EMEA on November 17th and 18th in London. We recruited speakers from companies with customers who say that they’re already doing a standout job as well as speakers from companies that are in the midst of tackling tough CX challenges.