Preparing Your CU for 2020:
A Definitive Blueprint
Sundeep Kapur
Digital Credence
Transforming Consumer Experiences Across Channels
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What is Expected in 2020
FI’s focused on
Millennials
Uberization
Bye Bye Banks
What consumers want
Convenience
Simplicity
Personalization
• What would you do to get new members?
• How would you increase share of wallet?
• Where would you put your next branch?
• How would you invest in your current infrastructure?
• What would you do to create an OMNI-channel experience?
Aspirational Lessons From Other Industries
Merchandising
& Promotions
Retailers
&
Catalogers
Loyalty &
Lifetime Value
Extreme
Personalization
Dot Com’s
Sports &
Entertainment
Transforming Consumer Experiences Across Channels
Aspirational
they may be,
they all target
the same
consumer!
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Raiders
• Tickets
• One time, season, bundled, box, special
• Advertising
• Traditional, new, direct, online, affiliates
• Merchandise for every occasion
• Reason, season, lifetime
• Food & Beverage –
• They want you to tailgate inside the stadium
• Relational Marketing –
• Because you like this, we think you will like…
Insight - Unbelievable loyalty & they know their customer segments
Kohl’s
• Loyalty Program
• Drives continuous engagement
• Transactional Receipts
• Convenience & cross-selling
• Payment Options
• Credit cards, layaways, tiered discounts
• OMNI-Channel
• Walk in traffic, self-serve kiosks, online
• Employee Training
• Answers available
Insight - Can you imagine your members walking into your branch and just
browsing around while waiting to be served?
Amazon
• Product Selection
• From large electronics to toothpaste
• Delivery
• Home, next day, track-able
• Ranking
• Peer reviews that are real
• Product Development
• Innovation – Kindle, Alexa, Echo
• Branding
• Impeccable personalization, cross-selling, & loyalty
Insight: 1:1 service that is reliable & trusted
Financial Services Innovation
Transforming Consumer Experiences Across Channels
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Coastal FCU & Bank of America
• Remote video conversations with specialists
• Multi-function devices that are intuitive
• Real time marketing
• Personalized interactions
• Digital receipts (that are faster than paper)
• Carrying conversations to other channels
• Speed of execution
Insight: Did you really need to come to the machine?
Transforming Consumer Experiences Across Channels
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Wells Fargo & State Employees FCU (NY)
•
•
•
•
•
Small branch footprint
Bright & inviting
Longer hours, fewer resources
Interactive & intuitive
Digital signage to engage
Insight:
What is your expertise within the branch?
Can you “beam in” experts?
How do you schedule efficiently?
Multi-Channel Engagement
Transforming Consumer Experiences Across Channels
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Real Time Works
100.00%
98.50%
95.76%
87.80%
90.00%
80.00%
Opened within timeframe
PERCENTAGE
70.00%
Clicks/Sent
Clicks/Open
60.00%
50.00%
44.00%
40.00%
30.00%
20.00%
20.69%
22.98%
13.17%
10.00%
5.72%
0.00%
<3 min
<10 min
<30 min
<24 hours
TIMELINE
Transforming Consumer Experiences Across Channels
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HDFC Bank
• Multi-channel efficiency
• Three touch transactions that convert
• Messaging for every occasion
• Data mining & extreme personalization
• Using ATM’s as a lead source
Insight –
How would you personalize before, during, & after transactions?
How would you connect channels?
Transforming Consumer Experiences Across Channels
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Ally Bank, DCU, & Lending Club
•
•
•
•
•
Focused on the mobile branch
Quick response buttons
Online apps, remote deposit, & P2P payments
Organized & intuitive
Personalized messaging
Insight –
How can you simplify the information collected for account opening, or
loan origination?
How do you decide how much to invest on the mobile branch?
Transforming Consumer Experiences Across Channels
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San Antonio CU & Delta Airlines
•
•
•
•
•
A focus on consumer self service
SACU – an intuitively designed kiosk for non-cash transactions
Delta – simplicity at the kiosk, connected to mobile device
Paper-”less” & not paper free transactions
Empowered consumer interactions
Insight –
What functionality would you put on a kiosk?
Where would you place your kiosk?
Would you offer video interaction via the kiosk?
Exploring a Branch Transformation
Transforming Consumer Experiences Across Channels
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Defining Member Journeys
Because they need to get
around
Help them stay updated
News &
Current
Events
Contribute to the community
Auto
Charity/Cause
Home
Lifestyle
A good standard of living
A roof over their head
Life
Business
Helping them grow
A way to care for the
family
Transacting On Social Media
Transforming Consumer Experiences Across Channels
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Preferences & Big Data
Branch
ATM
Call Center
Online
Collect Data
Normalize Data
Create Rules
Execute Triggers
Analyze Results
Mobile
Direct Mail
Conversing Across Channels
Five Step Mantra
1. Recognize Consumer
2. Serve Appropriate Message
3. Remember Transaction
4. Leverage Insight
5. Anticipate
Online
Mail
Email
INTEGRATE
DIGITAL
Third-Party
Transforming Consumer Experiences Across Channels
Mobile
Branch
Call Center
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Branch
ATM
Call Center
Mobile
Online
Advertising
Messaging
Digital Signage
Credit Scoring
Equifax,
Transmission,
Experian
Preference
Manager
Payments
and
Processing
Network
Conducting a Technology Assessment
Switch
Branch
Automation
Rules
Engine
C
R
M
MCIF
House holding, Profitability,
Predictability, Campaign urgent,
Analytics, Modeling, Aggregation
Authentication
Personalization
Alerts
Calculators
Security
Mobile
Online
Core
Manages transactions, maintain balance,
calculates deposits, and loans
R
E
C
O
R
D
S
Strategic Vision Execution
Defining Success - Where do you want to be?
•Where will you be in the year 2020? What strategies do
you use to choose partners, create products, & enhance
member share of wallet?
Members
Journeys
Building a strategic
plan to create the
perfect financial
institution
Channels
Branding
Employees
Big Data Analysis
•How do you leverage
consumer data, protect
information, maintain
privacy, yet offer
personalization?
Payments & Loyalty
•What are you doing to
prepare for the mobile
wallet, digital cash, &
manage loyalty?
Transforming Consumer Experiences Across Channels
Channel Mix
•What channels will you
invest in? How will you
enhance your physical
channels? How will you
integrate digital?
Profitability & LTV
How do you measure
member, product,
employee, & channel
profitability?
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Uber, Ubered, Uberization
Transforming Consumer Experiences Across Channels
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Bye Bye Banks
• Create an agile team that leverages technology, process, & people
• Build to attract consumers
• Serve to enhance share of wallet
• Keep testing, analyzing, & sharing results
• Invest for the long-term
An Avalanche of Innovation
• Authentication strategies
• Robots & assisted conversations
• Click to transact
• Shopping lists & preferences
• Intuitive auto-replenishment
• Loyalty & tier marketing
• Picking up where we left off
• Semantic search
• Empathy from machine learning
Transforming Consumer Experiences Across Channels
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Future Outlook
• The branch is not going away, modernize it
• Your payment options have to be OMNI-channel
• Build affinity by offering personalized relevance, convenient loyalty, &
becoming a trusted mentor
• Competition will be intense
• Focus on Consumer Journeys
Let’s Connect…
Sundeep Kapur
https://www.linkedin.com/in/sundeepkapur
[email protected]
803.479.2549
Transforming Consumer Experiences Across Channels
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