Which Firm Poses The Biggest Disruptive Threat To Retail Financial Services?

Benjamin Ensor

Over the past few months, we've been researching a series of reports about the disruptive potential of various clusters of new entrants into financial services, from social lending and crowdfunding to digital investment managers and digital banks.

But many eBusiness executives are more concerned about the potential impact of technology giants like Amazon, Apple or Google with their deep pockets, technological prowess and broad consumer reach.

I originally posted this question on one of Forrester's internal collaboration platforms, but I was so intrigued by the results from my colleagues I thought I would post the same question here to see whether your perspective similarly is thought-provoking.

Please vote in my poll in the column to the right of this post. ->

Have I missed any firms that you think have even greater potential, or plans, to disrupt retail financial services?

Customer Experience Q&A With Steve Quirk, SVP, Trader Group, TD Ameritrade

Harley Manning

Do you like those thinkorswim commercials from TD Ameritrade as much as I do? Because I love them. Although that’s not the reason we recruited Steve Quirk, a senior vice president (SVP) at TD Ameritrade, to speak at Forrester’s Forum For Customer Experience Professionals East in New York this June.  

Sure, Steve was responsible for the development of new trading tools and technology enhancements for the thinkorswim trading platform. And he does an incredible job of connecting customer experience improvements to technology innovation (as you’ll see if you read on).

No, we recruited Steve because TD Ameritrade shot up seven points in our Customer Experience Index this year, edging ahead of last year’s leader in the investment category, the formidable Vanguard. How it did that and why it did that is a story we want customer experience aficionados to hear.

In the run-up to the event, Steve answered a series of our questions about some of things he’ll talk about. His answers appear below.

I hope you enjoy his insights, and I look forward to seeing many of you in New York on June 24th and 25th!

Q: When did your company first begin focusing on customer experience? Why?

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US Mobile Banking Benchmark: Chase And U.S. Bank Earn Top Scores But Banks Lag On Innovation

Peter Wannemacher

When it comes to mobile banking, customers' expectations are growing faster than the hair on a Chia Pet. So every year, Forrester reviews and scores the mobile banking offerings from the largest retail banks in the US across seven categories: Range of touchpoints; Enrollment and login; Account information; Transactional functionality; Service features; Cross-channel guidance; and marketing and sales. You can read the complete report here or by clicking on the link below:

Here is a sampling of some of our findings:

  • Chase and U.S. Bank tie for the top spot. With scores of 69 out of 100, Chase and U.S. Bank received the highest overall scores among the five banks we evaluated. Chase delivers the basics superbly, with a wide range of transactional features for transfers, bill pay, and P2P payments as well as strong cross-channel guidance for customers to contact Chase and find ATMs and branches. By contrast U.S. Bank stands out for more advanced features, including marketing and research for additional products, the ability to take a picture of a paper bill to enroll in bill pay, and the ability to pay another person using the contact list in a mobile phone.
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Canadian Mobile Banking Benchmark: CIBC Leads Overall Followed Closely By BMO And Scotiabank

Peter Wannemacher

In Canada, mobile banking is growing up faster than Justin Bieber. So from March 21 to April 9, 2014, Forrester reviewed and scored the mobile banking offerings from the five largest retail banks in Canada across seven categories: Range of touchpoints; Enrollment and login; Account information; Transactional functionality; Service features; Cross-channel guidance; and marketing and sales. You can read the complete report here or by clicking on the link below:

Here is a sampling of some of our findings:

  • CIBC earns the highest overall score with BMO and Scotiabank on its heels. With an overall score of 71 out of 100, CIBC received the highest overall scores among the five retail banks we evaluated, continuing the firm’s leadership in mobile banking since it launched its first iPhone app four years ago. But the other large Canadian banks are hot on CIBC’s trail: BMO and Scotiabank each earned a score of 70 out of 100 with impressive – and recent – overhauls of their mobile offerings. Scotiabank lets users apply for new products via mobile with pre-filled, mobile-optimized applications. BMO, meanwhile, ensures that all mobile money movement task flows are clear and consistent -- incorporating the same progress meter at the top of every screen.
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Digital Is What We Do Now: Banking Trends And What Digital Teams Should Do About Them

Peter Wannemacher

The first email I received at work in 2014 was from a bank; along with a festive new year’s greeting, the email touted the bank’s new mobile app and a new feature that let customers set up travel notifications directly from the bank’s website. Later that day, I was in an airport reading a friend’s Facebook post about how she wished “more apps were like Uber.”

These are just a few small anecdotes about ongoing digital trends impacting businesses and banks both large and small. I recently spoke with a banking executive who put it simply: “Digital is what we do now.” (This quote is now the header of my Twitter feed.)

Forrester recently published our Trends 2014: North American Digital Banking report, in which we identify major forces impacting banks and lay out five actions that we recommend digital strategists take to prepare for the future of digital banking. Here’s a sample of some of our findings:

  • Banks will face a sustained – yet unclear – regulatory environment. In both the US and Canada, banks are confronting an uncertain regulatory future. The Dodd-Frank Act was signed into US law on July 21, 2010, but a large number of the rules and regulations remain unwritten. It's unclear when they'll be finalized, and the fact that 47% of deadlines have already been missed – according to the law firm Davis Polk & Wardwell – doesn't bode well.
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Why You Should Turn To Poland For Digital Financial Services Inspiration

Oliwia Berdak

“How come America put a man on the moon 45 years ago but still has not produced decent online banking?” asked recently on Twitter MichaƂ Panowicz, mBank’s Managing Director for Products, Digital Channels and Marketing and one of the speakers at last week’s Net Finance Conference. As provocative as the question is, Panowicz is in a strong position to ask it. After some big investments in the bank’s online and mobile offering, the bank has just announced record profits for the first quarter of 2014. Digital innovation is obviously paying off. But once you’re on that road, there’s no turning back. You can’t "undisrupt" yourself.

As my colleague Benjamin Ensor wrote some time ago, innovation often happens in clusters.This means that innovation by one company causes its competitors to not only match it but also to try to leapfrog it — resulting in rapid cycles of innovation. This is what is happening in Poland right now. During my trip there last week, a few bank executives told me of the increasing internal and external pressure not to fall behind digital innovation. There a couple of other reasons why Poland is a great testing ground for new financial services ideas; it has:

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Highlights and Thoughts From Finovate Fall 2013

Peter Wannemacher

[note: this was written live last week while I was attending Finovate]

Greetings from the Big Apple! I’m here attending the fancy schmancy Finovate Fall 2013 conference featuring tech solutions and innovations from – and for – the financial services industry. Here are some of the offerings and presentations that stood out for me, in the order they were presented at Finovate:

  • Kofax offers process automation software for lenders, but the big takeaway for me was their recent expansion of mobile, cross-channel, and multichannel analytics for financial providers. Focused on how customers shop for a loan, the dashboard and data are digestible and actionable. The jury’s still out, but strong analytics and easy-to-use tools can help banks improve sales in their lending lines of business.  
  • MoneyDesktop offers digital money management tools – also known as personal financial management or PFM – and their demo at Finovate continued to show their strengths: Nifty tools, clean design, and intuitive UI and UX. The question mark for banks, however, continues to be how well integrated – or better yet, embedded – the experience can/will be for end users.
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Citi And Royal Bank Of Canada Earn The Top Spots In Our 2012 Bank Secure Website Rankings

Peter Wannemacher

Late last year, Forrester reviewed and ranked the secure websites of the 12 largest retail banks in the US and Canada. The full reports can be found here (US) and here (Canada). Overall, banks' secure websites earned an average score of 70 points (out of 100), demonstrating a level of quality that meets customers expectations but also leaves room for improvements. Here are some of the highlights:

  • Citi moves to the top of the US rankings with a website overhaul. In July 2011, Citi launched its first tablet banking app. Based in part on insights gleaned from that process, the bank rolled out a newly redesigned secure website, followed by additional digital features and functionality for online bankers, mobile bankers, and tablet bankers. As a result, Citi moved from second-to-last in our ranking to the top spot this year.
  • RBC pulls off a historic sixth-straight win among Canadian banks' secure sites. For a record sixth year, RBC earned the top spot in our Canadian rankings. Two factors drive RBC’s digital banking success: First, the bank's secure website offers a wide array of secure site features, including eBills, tax management tools, and more; second, the bank continues to innovate, this year adding customizable money management dashboards and new mobile features such as foreign exchange and mortgage payment calculators on its iPhone app.
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