In a world of multiple physical and virtual interaction channels, customers in both developed and emerging countries are ready for omnichannel banking. To help banks successfully make the transition from multichannel to omnichannel, Cisco IBSG surveyed 5,300 consumers in eight countries, interviewed executives at many of the world’s leading banks, and tested several omnichannel concepts. The findings, recommendations, and implications covered in this presentation should prompt banks to act now to gain a competitive advantage by attracting new generations of customers, retaining existing customers longer, and generating new revenue streams. Cisco IBSG Omnichannel Study: Winning Strategies for OmniChannel Banking http://www.cisco.com/web/about/ac79/docs/Cisco-IBSG-Omnichannel-Study.pdf

1. Winning Strategies for
Omnichannel Banking
Jörgen Ericsson, Vice President, Financial Services Practice, Cisco IBSG
Philip Farah, Director, Financial Services Practice, Cisco IBSG
Al Slamecka, Financial Services, Enterprise Marketing
June 2012
More info: http://www.cisco.com/web/about/ac79/docs/Cisco-IBSG-Omnichannel-
Study.pdf
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2. Setting the Stage:
From Multichannel to Omnichannel
 In an era rich with interaction channels (mobile, social, visual),
consumers expect more control over how they shop, bank, and interact
with service providers
 Consumers expect “here and now” from their bank, just like they
receive from other industries
 Industries are reacting to this new reality by moving away from the
traditional multi-channel approach (shifting customers to the least-
expensive channel) to an omnichannel one
 The omnichannel approach is one where physical and virtual
channels come together to enable a seamless experience
embedded in people’s lives and businesses
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3. Omnichannel Research Scope
and Methodology
 5,300 consumers across eight countries
– Developed countries:
Canada, France, Germany, U.S., U.K.
– Emerging countries:
Brazil, China, Mexico
 Primary research conducted May 2012
 Tested nine innovative omnichannel concepts:
– Virtual banking – Mobile banking
– Specialty branch – Social media
– Streamlined branch – Customer sensing
– Banking pod – Digital footprint management
– Agent branch
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4. Omnichannel Banking: Transformation
in Emerging, Evolution in Developed
 Top 3 concepts of interest across geographies: specialty branch,
virtual banking, infomediary
 Emerging countries show high level of customer readiness
– Dissatisfaction with current banking services: 49% dissatisfied
with banking service in emerging countries vs. 26% in developed
countries
– Readiness for new interaction models: Average interest in our top
three concepts for emerging is 7.3 versus 5.2 in developed
(scale of 1-10)
 In developed countries, the evolution towards omnichannel is
underway with privacy concerns
– Lack of readiness to share personal information: developed 65% vs.
emerging 53%
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5. Four Pillars of Omnichannel Banking
Omnichannel Banking
New
Mobile Social Video
Branch
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6. The Old Branch Is Dead—
Long Live the Omnichannel Branch
 Omnichannel is about the choice to use ALL channels including
branches
– 30% of digital banking channel users are also frequent branch visitors
– 22% of people would switch banks if their bank went all virtual
– 82% of those who would abandon bank if branches close, are also
active users of virtual banking channels
 Branches key strength: personal attention, quality advice
– 26% of consumers will leave bank if advisers, personal advice removed
from branch
– 83% of consumers in favor of branches expanding their financial
advisory services
 Customers open to quality advice delivered virtually
– 23% of consumers in developed and 43% in emerging countries see
the use of video conferencing with remote experts from the branch as a
way to enhance the quality of advice in situations where access to
quality expertise is a concern
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7. Mobile:
Bringing the Bank to the Consumers
 13% of consumers in developed countries and
18% of consumers in emerging markets prefer to
use mobile banking applications
 Most interesting mobile apps are: real-time
expense tracking, personal finance management
(PFM), payments and mobile commerce
 Consumers who strongly favor mobile banking are
young (Gen Y or Gen X), tech-savvy, and frequent
branch users (2.5+ visits per month)
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8. Social Banking—the Potential Is
Here…When Will Banks Be Ready?
 Customers still hesitant to use social media for banking
– Only 1% of customers in developed
– 8% of customers in emerging countries
 Concerns due to privacy / lack of control
 One segment in favor: younger, tech-savvy customers
in emerging countries
 The most attractive concepts for Gen Y respondents
were learning communities, financial incentives to “refer
a friend” and financial games and competitions
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9. Video—Seeing Is Believing
Video Key to Building Trust
 Video conferencing with remote experts enhances
quality of advice
– 23% customers in developed countries
– 43% customers in emerging countries
 Video key feature: Experience enhancer for locations
lacking availability of human expertise
– Unmanned banking kiosks, after-hour ATMs, virtual banking
 Video is ready for the mainstream: Gen X and early
majority technology adopters strong believers in video
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10. The Privacy Minefield—Tread Carefully
 Top concerns: privacy, security, identity theft
– 65% of customers in developed countries
– 53% of customers in emerging countries
 29% of those opposed to personal information access
willing to share if on “opt-in” basis
 Consumers worldwide strongly in favor of banks as an
infomediary
– 60% of customers in developed countries (Gen Y: 70%)
– 89% of customers in emerging countries (Gen Y: 92%)
 Banks chosen as favorite infomediary
– 42% prefer banks ahead of the government (19%), telcos (6%),
and social media sites (4%)
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11. So What? Implications for Banks
Consumer Needs Implications for Banks
 Advice-centered,  Optimized branches for
omnichannel branches personalized advice
(physical and virtual)
 Real-time, location-enabled
mobile financial services  PFM, payments, and
commerce-centric mobile
 Social media to provide apps
secure financial learning
 Pilot virtual financial
communities
learning communities in
 More personalized, higher- social media
quality interactions enabled  Develop integrated
by video architectures
 Introduce video interactions
with experts in branches
and at home
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12. More information: http://www.cisco.com/web/about/ac79/docs/Cisco-IBSG-
Omnichannel-Study.pdf