Why The Future Of Insurance Will Be Mobile And What Will It Mean For Insurance Business Models

Ellen Carney

Anybody out there who doesn't have a mobile device, raise your hand...just what I thought.

The explosion of mobile phones and apps in the everyday lives of consumers--and agents--is powering big changes in the business of insurance.  Heightened customer expectations are getting formed by the changing mobile landscape; new generations of customers; new competitors, and the ferocious pace of mobile tech-enabled innovation that is radically reshaping how customers become informed, purchase, and get service. 

In our new report, the first of Forrester's Mobile Insurance Playbook, we examine how mobile forces are driving customer expectations and how customer demands are going to influence new insurance business models.

Consider that:

  • Consumers are living La Vida Mobile.  Mobile is a pervasive element in the daily lives of insurance customers. With more mobile devices available within easy reach, US consumers are tapping into this ready convenience to research, buy, and service their financial needs, including insurance.  And how about those Millennial insurance customers?  More than one in four told us that they use mobile as their main personal financial channel. 
  • Agents are becoming proficient mobile tool users.  The tablet form factor looks almost purpose-built for the needs of agents.  From their hi-def displays to fast boot-up and super portability, agents are ardent tablet-ers, and half the agents in an informal survey at the end of last year cited mobile as one of their leading business initiatives. 
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Mobile Banking And Payment Innovation In France

Benjamin Ensor

Myriam Da CostaThis is a guest post from Myriam Da Costa, a researcher serving eBusiness & Channel Strategy professionals.

France has been quick to embrace mobile banking. Banks like BNP Paribas and Société Générale were among the pioneers of mobile banking in Europe and since 2009, all of the big French banks have launched iPhone mobile banking apps, so most French banks now offer several forms of mobile banking. The first wave of mobile banking was about getting the basics down and offering customers functionality like balances, transaction histories and SMS alerts. The second wave now focuses on money transfers and payments.

As we wrote in our report on The State Of Mobile Banking In Europe 2012, mobile banking is the foundation for mobile payments. France's banks and mobile operators are moving fast to seize the opportunity. In the past two years there has been a wave of new mobile payment initiatives in France: Buyster, Cityzi, Kwixo, Kix and S-money.

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Burberry's Digitally Enabled Store Is Seductive, But Is It Really "Agile Commerce"?

Martin Gill

There are a few firms that I regularly point to as agile commerce exemplars, and one of them is Burberry.

This always makes me smile because being from the north of England and growing up in a  culture dominated by shipbuilding and football (and Newcastle Brown Ale), Burberry has long been the iconic garb of the “chav.” Since many of the people who read this blog aren’t from the UK, a quick cultural diversion is probably needed here. But don’t worry - it's relevant to the Burberry story. Honest.

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Digital Disruption Will Tear Down And Rebuild Every Product In Every Industry

Carrie Johnson

 

Digital disruption is forcing business leaders in every industry to rethink their strategy. Music, media, and publishing have been turned upside down. Now, non-digital products and services — from airlines to automobiles — must consider new competitors, new economics, and new customer relationships. For example, game-changing, disruptive mobile experiences and apps on platforms like Amazon.com, Apple, eBay, and Google give those firms control of consumer mobile devices and platforms, allowing them to both "tax" sales and hijack payments as well as threatening to further strangle already-squeezed margins for eBusiness professionals.

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Digital Banking Innovation In Turkey

Benjamin Ensor

In our research on eBusiness and channel strategy, we often come across clusters of innovation where innovation by one company in a sector causes its competitors not only to match it, but to try to leapfrog it -- resulting in a rapid cycles of innovation. Among the examples of these clusters are insurance companies in the US (Progressive, Geico and a growing number of others) and banks in Spain (Bankinter, La Caixa, BBVA and Banco Sabadell).

Another of those clusters is the retail banking market in Turkey. Last week I was in Istanbul and was able to see some of the innovations in person and meet a number of heads of eBusiness at Turkey's big banks. Turkey's banks have been quick to adopt digital technologies and achieved some world firsts for the banking industry. Here are a few examples you might like:

  • Ziraat Bank's video teller machineZiraat Bank has deployed a network of unstaffed video kiosks (see picture, right), which it calls video teller machines, that use video-conferencing to connect customers with agents in the bank’s contact centre. Customers can use the kiosks to deposit and withdraw money, buy and sell foreign exchange, pay bills, transfer money and buy bonds. The kiosks let the bank expand its network much more quickly than building conventional branches would do.
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Lessons from Toys R Us and Nordstrom

Sucharita  Mulpuru

The 2012 Shop.org Annual Summit, the prestigious eCommerce confab, was held this past week in Denver.  I got the chance to emcee the event and meet the keynote speakers.  And the lineup was particularly compelling this year, with Jerry Storch, the CEO of Toys R Us and Jamie Nordstrom, President of Nordstrom Direct kicking off each of the respective days of the conference.  It was an interesting dichotomy—Jerry Storch is a notorious internet skeptic  (he was the guy who reportedly was behind Target’s, uh, questionable decision to execute eCommerce on Amazon’s platform) while Jamie Nordstrom may be the industry's biggest web evangelist.  Nordstrom is heavily focused on web growth and is investing a lot of money to the channel.  Despite their differences, there were consistent themes that surfaced nonetheless: 

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What You Can Learn From Facebook's Approach And Mistakes In Building Mobile Services

Julie Ask

I listened to the Mark Zuckerberg interview from the  TechCrunch Disrupt event in San Francisco this week. 

There were a few choice quotes (I'll paraphrase them here - these are not literally a transcription. You can find the video/audio on the TechCrunch site):

"The biggest mistake we made (with our mobile services) was relying too much on HTML5 and for too long." 

"We finally realized that a good enough mobile experience would fall short. We needed a great mobile experience. The only path to great is native on iOS and Android." 

"Our mobile users are more engaged and use our services more frequently." 

"All of our code is for mobile."

"We'll build native code for iOS and Android." (And it is building for iOS first)

"Ads can't be standalone on a sidebar in mobile. They need to be integrated into our product." 

"We reorganized. A year ago, 90% of the code check-ins were from the core mobile team. Now 90% comes from other parts of the organization." 

"We reorganized. We were in functional silos. We now have product teams (responsible for delivery)." 

"A Facebook phone doesn't make any sense." 

Some context. Certainly, Facebook is unique with it being a media-centric company and very global. It does need mobile Web to reach much of its audience - now nearing 950M. For many companies, mobile Web will continue to be a relatively low-cost, broad-reach play to get to most of the phones. Mobile Web doesn't go away, but it is not where the differentiation will happen - at least in the near term. 

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The Business Case For Personal Financial Management

Benjamin Ensor

Back in November 2006, a startup called Wesabe first showed the potential of online money management. Packaged personal financial management (PFM) software for PCs like Intuit's Quicken had existed for years, but Wesabe, Mint.com and a handful of other startups showed the value of using customer data, and community, to help people understand their finances better.

Since then, hundreds of banks, credit unions, wealth management firms, and other companies have launched a range of spending categorization, budgeting, peer group comparisons, and other money management features for their customers.* The leaders are increasingly making money management available in mobile and tablet apps, as well as on their websites. Fuelled by the poor state of many of the world's developed economies and growing use of digital channels, customer interest in online money management is substantial, as my colleague Reineke Reitsma wrote on her blog a few months ago.

Yet despite the growing number of firms that already offer money management, and the evident interest of some customers, many financial services eBusiness executives still question whether the business case adds up. Our new report on The Business Case For Personal Financial Management addresses that question. Here's what we found:

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Royal Bank Of Canada, Citi, & Wells Fargo Top Forrester’s Digital Sales Rankings In 2012

Peter Wannemacher

Every year, Forrester employs its Website Benchmark (WSB) methodology to evaluate the effectiveness of North American banks’ digital sales efforts. This year, our evaluation has yielded two reports: 2012 Canadian Bank Digital Sales Rankings and 2012 US Bank Digital Sales Rankings. Here are some of the highlights:

  • Royal Bank of Canada (RBC) leads all of North America.RBC again took the top spot in the 2012 Canadian Bank Digital Sales Rankings, scoring 77 out of a possible 100. It continues to tweak and improve an already good design; the bank started a major redesign in 2009. RBC continues to excel in areas big and small: For example, the firm presents fulfillment options in an easy-to-read format (see screenshot below). In 2012, Royal Bank of Canada improved its navigation, content, and online application functionality, and its score for 2012 reflects that improvement.
  • Citi and Wells Fargo top the US banks.Citi and Wells Fargo topped Forrester’s 2012 US Bank Digital Sales Rankings by delivering on multiple levels. Both banks combine good usability with exceptional account-opening processes. For example, Wells Fargo uses presentation best practices to make its checking account fees clear to customers and prospects (see screenshot below).
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Shooting Arrows At Eagles

Martin Gill

Mao Zedong is quoted as having said that: “A revolution is not a dinner party . . . A revolution is an insurrection, an act of violence by which one class overthrows another.”

However, history also shows us that violence is not the only way to lead transformational change in a society that is locked into a traditional way of being. Some iconic campaigners for peaceful change, such as Gandhi or Leo Tolstoy, come from relatively privileged backgrounds and were well positioned to take a front seat in leading change. However, others have risen from very humble beginnings. Martin Luther King. Sophie Scholl. Emmeline Pankhurst. All people from ordinary backgrounds who rose to prominence through their single-minded vision of a better world, their ability to communicate their passion, and the courage of their convictions in the face of overwhelming opposition to their way of thinking.

So why is this relevant to a blog that’s normally about eBusiness?

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