Mais conteúdo relacionado Semelhante a 2012 Jdivanna (20) 2012 Jdivanna1. © 2012 Maris Strategies, ltd. All rights reserved.
Rethinking Banking:
Innovations from Emerging Markets
Dublin
February 28, 2012
2. We Must Learn to Think Differently
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3
1 2 1 2
3
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Global Macroeconomic Trends
Reshaping the Banking Industry
5. What are the Trends that Influence our Macroeconomic Future?
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Macroeconomic Future
Today’s World
Economy Policy Demography
Lower growth
Higher risk aversion
Increased regulation
Higher capital requirements
Lower recurring investment yield
Inflation / deflation
Higher economic volatility
Scenarios
6. Four Macroeconomic Trends
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CHANGE IN WORLD ECONOMIC ORDER
Has the Americanization of the World Ended?
CHANGES IN ECONOMIC ACTIVITY
Will emerging economies surpass service economies?
CHANGES IN NATIONAL POLICIES
Is free market capitalism an answer or a question?
CHANGES IN AGGREGATE CONSUMER BEHAVIOR
Will global consumerism initiate a global
battle for natural resources?
7. The Financial Crisis in an Opportunity
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Chinese word for Crisis
Danger Opportunity
8. Real GDP Growth Rates per Capita
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9. Real GDP Growth Rates per Capita
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MEASURE: Annual average growth rates per capita
10. A Shift in Consumption
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12. China Focuses on Domestic Markets
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13. The Changing New World Economic Order
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14. Will Emerging Markets Continue to Outpace the Rest?
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High Growth + Low Debt = Opportunities in Emerging Markets
United States United Kingdom Ireland France Japan
Growth 2.8% Growth 1.7% Growth 4.0% Growth 1.6% Growth 1.4%
Gvt Debt 99.5% Gvt Debt 83.0% Gvt Debt 96.0% Gvt Debt 85.0% Gvt Debt 229.1%
16. Emergence of Middle Class & Urbanization
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17. The Rise of the Emerging Markets’ Middle Class
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18. Increases in Trade with Africa 2000 - 2010
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19. Transition in the Top 20 Financial Institutions by Market Cap.
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1999 2009
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Socioeconomic Changes
21. Civil Unrest and Unemployment Rates
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Young populations, high
40% Where is Ireland? youth unemployment
35% Egypt
Youth Unemployment Rate
Ireland Tunisia
30%
Saudi Arabia
25% Lebanon Algeria Jordan
Iran
20% Libya Syria Yemen
Bahrain
Morocco Oman
15% Qatar
10% UAE Kuwait
5% More mature populations lower unemployment
0%
25%
30%
45%
50%
65%
70%
35%
40%
55%
60%
% of Population under 24 Years Old
22. Euro Zone Youth Unemployment
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23. Global Values and Domestic Concerns
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Survey of Egyptian Households
November 28, 2011
Source: Foreign Policy,
December 13, 2011
24. Socioeconomic Forces: Expansion and Compression
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Number of direct
ways to get there
Globalization Disintermediation
Number of
places to go
25. © 2012 Maris Strategies, ltd. All rights reserved.
Redefinition of the Value Proposition
26. The Historical Value Proposition for Banking
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Safety
Interest Rates Customers
Integrity Value
Proposition
Return on Investment Shareholders
27. 21st Century Bank’s Value Proposition: Value is Relative
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Telephone banking
Branch ATM ATM Internet Branch of
Convenience (Access) (1st generation) (2nd generation) (With linked the future
Customers Expanded Remote Services) (Advisory)
Hours locations Extended Extends
Extended breath of depth of
reach Services Service
Value Level of Treated like Feel like an individual Customisation and
Proposition customer intimacy an account not a number personalisation of
Ease of use services
Cost Low cost High Quality
Security Physically safe Deposits insured
Fidelity Accuracy of information Discretion Secrecy
Nationalism
Corporate
Morals Ethics Community (keeping the profits
values
in the country)
Shareholders Profitability
Growth
Community standing
31. Understanding the Relativity of the Value Equation
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Value is not Simply “Price = Costs Plus a Profit Margin”
Satisfaction of Needs Fulfilment of desires
Value =
Resources Used Everything required to meet desires
Global Annual Production 2010
130 million carats
32. Value is Relative
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Value perceived value for
Proposition = value
+ money
+ convenience
33. © 2012 Maris Strategies, ltd. All rights reserved.
Understanding Global Customers
34. How Bankers See Themselves and Customers
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35. The Realities of Banking…it’s Messy
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36. No, this is Not a Queue for Excellent Service
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37. The Duality of a Retail Banking Transaction
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39. Developing Customer Intelligence
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Branch Bank Manager’s Handbook
Managers should be in No new current
frequent communications accounts should be
with the head office and opened without
with each other knowledge of, or full
concerning the character enquiry into, the
of customers, changes circumstances and
in partnerships, bill character of
transactions and other customers.
banking interests.
40. © 2012 Maris Strategies, ltd. All rights reserved.
Customer Behaviour
41. Understanding Customer Behaviour
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Fixed interest
Variable interest
Credit Fixed periods
of repayment
Payments
Debit Variable periods
Transactions of repayment
Savings
Current or checking accounts
Deposits Good interest rates
Customer
Precautions Access to money
Behaviours
Insurance
Safety
Links to mortgages
Ease of investment
Speculations Investments Convenience
42. Case Study: Austria
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innovation
independence
implementation
Breaking New Ground in
High Net Worth
43. The Black Experience: Euram “UHNW” Card
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Customers who appreciate luxury service, value privacy and remain
understated in their habits
“For those who have,
not for those that want to have”
45. Europe Contrasted with Emerging Economies
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Czech Republic
Jordan
Kenya
Source: Population Action International 2007
46. Are Customer Behaviours Predictable?
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Black Death
Outbreaks % of Meat In Peasant Diet
Shops
Markets
Fairs
Ad-hoc
Gatherings Wage Rates of a Thatcher
Population of England
1086 1200 1300 1400 1500 1600 1700 1800 1900 2000
47. The Big Question for Europe and the United States
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Leave it
or
Spend it?
49. Are Customer Behaviours Predictable?
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Preferred Banking Methods
Youth Market
40%
35%
30% Internet
25% Branches
20% ATM
15% Mail
10% Call Centre
5% Mobile
0%
2007 2008 2009
50. © 2012 Maris Strategies, ltd. All rights reserved.
Example India
51. Use of Social Media by Private Sector Banks in India
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Source: Simplify360
52. India’s Mobile Banking Users
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(in millions and % market share)
All others ICICI Bank, 17.75,
10.72, 25% 40%
Mobile banking users – Income profile
HDFC, 9.1, 21%
SBI, 6.13, 14%
60% of mobile banking users in India fall
into the Rs 1 to 5 Lakh income group
Source: Vital Analytics
53. Nature of Mobile Banking Services in India
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Request a
Cheching
Cheque Book,
Account Balance
19.11%
Inquiry, 39.97%
Payment
Reminders,
20.92%
Status of
Cheques, View Last Three
21.06% Transactions,
28.15%
Source: Vital Analytics
54. © 2012 Maris Strategies, ltd. All rights reserved.
What is Our Value Discipline?
55. The Value Discipline
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Product Leaders hip
offer super innov t ima a per ma in t maket
ing ior aion, ge, nd for nce heir r s
S hift to S hift to
Inves tment C us tomer
proliferate new products always be firs t
& s ervices -or-
-or- always be right
s treamline operations
Operational E xc ellenc e C us tomer Intimac y
offer t bestcombinaion ofl pr r ia it
ing he t ow ice, el bil y, offer exper a ice a cust t aong w h
ing t dv nd omizaion l it
a ea ofpur se in t maket
nd se cha heir r s pr s a ser ices t ensur t cust ’s success
oduct nd v o e he omer
S hift to Viability
s tandardize the cus tomer interface
-or-
cus tomize the cus tomer interface
56. Strategy Alignment Drives the Customer Experience
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Product
Leadership
2.8 European Data
2.6
2.4
How Most 2.2
Banks Actually
Behave What Most Banks Believe
Operational Customer
Excellence Intimacy
Source: Maris Strategies Financial Services Diagnostic Workshop
57. Customer Facing Organizational Structures
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Type Focus
Do stuff
Value Chain Buy stuff Distribute It Product
to It
Define Harness Get closure on
Value Shop Opportunities Resources each task Opportunities
Value Network Establish Broker
Add Value Customer
Relationship Relationship
Adapted from Stabell and Fjeldstad
58. The Organizational Achilles Heel
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Product Operational Customer
Leadership Excellence Intimacy
Hierarchical
Cost
Value chain Control
(Product focus) Delivery
Focus
Matrix
Harness
Value shop
Resources
(Opportunity focus)
Networked
Develop & Maintain
Value network
Relationships
(Customer focus)
Adapted from Stabell and Fjeldstad
59. Customer Synchronization
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Growing Bank Mature Bank Declining Bank
Revenue
Cost Revenue
Revenue Cost Cost
New bank or new product Working in a fixed but Losing customers
fluctuating profit margin or profits
60. Management Attitudes and Customer Focus
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Growth Strategy Competitive Strategy Survival Strategy
Corporate Cost containment
Mentality R&D Zone of False Sense Downsizing
Investment Outsourcing
of Strategy Security
Innovation
Employee Attitude Enthusiastic Optimism Next Quarter Focused Panic - Search for Next Job
Cost Revenue Revenue
Economics
Revenue Cost Cost
Outsourced
Process Refined
Business Process Defined
Process
Sold off
Employment Scramble for Talent Downsize
Re-organize Labour
Human
Resources Skill Alignment Policies & Benefits Outplacement, Terminations,
Organization Talent retention
61. Focus Strategy on Customers and Top-Line Growth
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Top-line Growth
Revenues
Profitability
Failure point
Bottom-line Savings
Costs
Q1 Q2 Q3 Q4 Q5
62. ROI is Dead: Measure Return on Process (ROP)
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The Need for a Process Focus
IT Project 1 IT Project 2 IT Project 3
ROI 22% ROI 8% ROI 11%
Value £1million Value £350K Value £425K
Loan Loan
Application Infrastructure Underwriting Settlement
Processing
Process Input: Process Output:
• Loan Volume Return On Process • Loan Volume
(ROP) • Profit / Loss
63. © 2012 Maris Strategies, ltd. All rights reserved.
New Competitors
66. The Nature of Money is Changing
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67. How did People Send Money within Kenya in 2006?
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68. How did People send Money within Kenya in 2009?
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69. M-Pesa: Person to Person Transfers Trend
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71. Key Numbers and Developments
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Central Bank of Kenya is in the process of finalizing
regulations that will allow non bank outlets and
platforms such as M-PESA as a channel for formal
deposit taking.
National Statistics on Banks – (Dec. 2011) M-Pesa (since 2007)
Banks 43 • 82% of mobile customers us M-Pesa
Branches 1,056
• 14.9 million people
ATMs 2,205
POS Machines 16,604 (68% of the working population)
Pre-Paid Cards 22,405 • 32,000 agents
Credit Cards 122,212
Debit Cards 8,548,390
Value of Transactions:
Kshs 57bn ($0.614bn USD) total value Kshs 314bn ($3.15bn USD)
of all card transactions (credit, debit, transferred between April to Sept 2011
pre-paid, etc.)
72. New Innovations from M-Pesa
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Intercontinental Transfers
International Transfers
Vodacom Tanzania reduces
M-Pesa rates
M-Pesa reduced mobile money
transfer fees by up to 75%,
transfers now Sh50 ($0.03USD)
per transaction.
Transfer money Kenya to
Tanzania.
Shareholder Rewards
Corporate Solutions
• Customer to Business (Pay Bill Service) Receive your Safaricom
• Business to Consumer (Bulk Payments Services) dividends by M-PESA
73. The People’s Bank of China licenses non-bank Transactions
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74. © 2012 Maris Strategies, ltd. All rights reserved.
Do Banks Still Make Sense?
75. Innovation is Not Invention
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Michael Jordaan, CEO, FNB Bank,
Innovation is the ability to differentiate.
As disruptive technologies and
business models challenge banks,
innovation is no longer just a competitive
advantage but rather a competitive imperative.
76. Innovation / Adoption Rates Often Differ
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Swivel TV 1990s
1939 2004
Projection TV
2005
78. Do I Need a Bank to Lend me Money?
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84. Northern Ireland
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Apr 2010
Linking 400 Investors to 900
Entrepreneurs
€26Million
JAN 2011
85. This Can’t Happen in Ireland
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Approved Social Lending Organisations in Ireland
Linking Investors to Entrepreneurs
Specialising in microfinance for
Dublin 2010 business start up throughout Ireland.
Specialising in community enterprise
and social infrastructure throughout
Ireland.
supported by Bank of America Merrill Lynch
86. Microfinance was Invented in Ireland
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Jonathan Swift’s Irish Loan Funds 1787
Loans £5 to £10 to poor industrious tradesmen
20 week loan - weekly instalments 2 to 4 shillings
Co-signed by 2 neighbours
Spawned a new industry (microlending)
Led to 1824 legislation to liberalize the Irish banking system
By 1840 the Loan Funds Industry was serving 20% of Irish population
Irish loan funds were very capable of tackling
the prospect of defaulting borrowers, it was
faulty management and increased competition
from banks that eventually led to their demise.
87. China’s Top 15 Social Networks
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88. Life-Stage Approach to Banking
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Car (s)
Rent
Purchase home Second home Retirement dwelling
20s & 30s 40s
single single
Young 50s & 60s
Child Child support Final
adult with / without Retirement
College expenses
Alimony partner
Divorce
Retirement savings & income
Travel
Wedding
Saving
for a 20s & 30s 40s
purchase married married
or event
Child-care expense Child’s college
Insurance (health, life, car, renters, home owner)
89. Lifestyle Approach to Banking
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Culture / Religion
Spenders/Borrowers Savers/Bargain Hunters Social Attitude
Income Levels Trust
Savings Convenience Behaviours
Search Price Compare Select Ship
$100+
$60-100k
Eastern / Western
Demographic Profiles
Defined lifestyle behaviours
US
Baby-boomer
$40-60k
$0-$40k income
$40k-$100k
$100k+
<$40k
Defined life-stage behaviours
90. Rethinking the Bank
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Cashless, paperless with
no back office
92. No Technology Group and a New Customer Experience
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93. Demographic-based Campaigns on ATM
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3
Mortgage
High Net Worth
Student Internet
Car Loan Debit Card Banking
Personal Insurance Opportunity Opportunity
Loan Mid-income Internet Banking Cross-Sell
Opportunity Opportunity
Ad campaign chosen 2 Profile mapped to
based on demographic
demographic …
Customer behaviour compared with
others to decide product promotion
4
… and delivered to ATM John Smith Other Customers
Mortgage Mortgage
Life Style
Life Style
Internet
Banking
Car loan
Credit Credit Car loan
6 No interest Card Card
shown. Life Stage Life Stage
Proceed with
service and
feedback to
1
Profile Card read to
obtain Customer Profile
Name: John Smith
Acc No: 667 389 245
Sort Co: 78-00-21
5 Bank: ABank
Yes chosen. Initiate sale Age: 22
Address: 18a Shore Court
94. Example: Consumer Banking Segment-Product Matrix
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Consumer Banking
HR CFO Legal IT
Sales Marketing Mortgage Credit Card Loans Investments
Brand CRM Insight Loyalty Direct Standard Premium Growth Income
Program Orientated Orientated
Home Auto Lines
Equity Of
Regions
Credit
North
South
East
West
Segments
Youth
Builders & Borrowers
Accumulators
Preservers
95. © 2012 Maris Strategies, ltd. All rights reserved.
Banking Products
96. The Key is Matching Products to Customers
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Cross-Sell Ratios in
Cross-Sell Ratios in Retail Banks
Number of products per customer
European Banking
3.5
USA 2.9
3.0
2.5
UK 2.5
2.0
Germany 2.0
1.5
1.5 1.25
Italy
1.0
Spain
0.5
France 0
Internet banks
Internet brokers
Special providers
(e-customers)
(all customers)
Traditional Banks
Traditional Banks
Scandinavia
6.0
0.0 1.0 2.0 3.0 4.0
Number of products per customer
98. Bank of New Zealand
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100. In the Future Customers are in Control
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Payment system
Who will issue this card: Bank accounts
A bank? A telco? A media company? Customer loyalty card
Points card
Gift card
Membership card
Business card
ID card
Prepaid card
Schedule / Time card
Cafeteria card
Ticketing / Transportation
Security access card
Debit card
Telephone card
101. The Right Card to fit a Lifestyle
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102. Divorcing Your Account from Your Card
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Turn my cards off (default)
Cards
Accounts
Turn on my VISA for 1 hour
Turn on my card in a foreign country
Turn on my MasterCard for 100 Dirham
103. © 2012 Maris Strategies, ltd. All rights reserved.
Distribution
104. The Nexus of Banking in the Future
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Social preferences
Lifestyle
l l us
Approach na tura io l
g io l ig ca
Re Cu R el Lo
Styles
Targeted behaviours
Lifestage
Stages
Approach Banking products / services
Life events Delivery
technologies
108. Philippines: Premiere Bank
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38 online branches.
Bank for the entrepreneurs and SMEs.
Consumer Finance (Personal, Salary and
Auto Loans), Factoring of Receivables
and the Purchase of Contract-to-sell
Receivables.
109. Turkey: Ziraat Bank
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Video Teller Machine
The VTM technology is aimed for
small towns which do not have
Ziraat Bank branches or big
shopping centres where there is a
need for a lot of employees.
The system recognizes the users
from their fingerprints and then lets
them get all the private banking
services they would have in a
“normal” branch.
114. © 2012 Maris Strategies, ltd. All rights reserved.
Thank you for your time
Joseph A. DiVanna
Notas do Editor Here are the rules: Draw a line to connect one to one, two to two, and three to three. You cannot cross lines You cannot leave the confines of the large rectangle You cannot pass through the small squares This is designed for 13 year old children who can accomplish it in 15 seconds. Conclusions: directions for self-service must be explicit or they confuse customers because customers have preconceived notions of how things should work. Regardless of the method used or targeted sub-segment, what retail banks are discovering is that each financial services product offering must have a clear value proposition and a direct appeal to a specific targeted group and an indirect appeal to other groups. The indirect appeal can be used to link products and services together and offer product bundles that appeal across marker sub-segment, such as loyalty schemes. The key is that value propositions are relative to the customer's perception of value and must be deliberately match to products. Moreover, the value proposition may wax and wane due to changes in a customer's attitude, lifestage, and lifestyle. When a value proposition begins to wane, it presents, for a limited time, an opportunity for the retail bank to offer another product that have a greater appeal based on past customer behaviours. Consumer behaviour is the result of a complex interaction in which many factors most of which will vary from customer to customer and will dynamically change over time due to the factors such as fashion, social conditions, and other influencing forces. There are very few absolute rules to behaviour that is repeatedly influenced by new ideas, approaches, and products that are continually adopted. For retail banks is means that the formula for market segmentation and the alignment of products to customer behaviours is a dynamically occurring process and must be re-evaluated periodically to insure the highest yield per banking product. Oddly, few banks map their customer behaviours to their product offerings. PRG-CKJ016-20040510-10567P1C PRG-CKJ016-20040510-10567P1C Tracey and Wiersema’s value disciplines provides a convenient framework for thinking about how the organization reacts to market conditions as it grows and matures. Knowing which value discipline is the current focus of your organization is the essential to establishing a growth agenda. Technology plays a key role in reshaping the products and services that banks provide to customers. In past decades, access to technology was the primary market differentiator for many institutes as larger banks with more capital to spend on technology set themselves apart from smaller institutions. This is no longer true as the cost of entry into the market for financial services has drop substantially, paving the way for numerous new non-bank providers of financial services. The future of banking is understanding which technologies bring the most value to the various customer segments you have targeted. Market differentiation is derived from the ability to rapidly deploy technology and the level of satisfaction provided to customers. Remember satisfied customers rarely change banks because of delivery technologies, unless the technology is perceived as providing additional value to the relationship.