I was invited by Capgemini Portugal and ACEPI (Associação da Economia Digital) to present at the 'Conferência Banca e Seguros' event in Lisbon. In this presentation some of the results of the annual World Retail Banking Report 2015 and the three goals an bank should strive for in the near future. Customer behavior, technology and FinTech are changing the value chain for financial services. The incumbents should get ready to take on these challenges. Do you want more info about the presentation or do you want a similar presentation with data from your country? Contact: pascal(dot)spelier(at)capgemini(dot)com

1. Pascal Spelier, 14 de Outubro 2015
Digital Customer Experience, two steps ahead

2. 2

3. 3
Source: Capgemini World Retail Banking Report 2015

4. 4
Price
Product
Service
(Digital)
Customer
Experience
The road to loyal
customers
‘Commodity’
Distinctive by ‘value added services’

5. 5
Product/service
differentiation
Employee
satisfaction
Process efficiency
Process
effectiveness
- Customer
satisfaction
- NPS
- Sales
- Share of wallet
- Retention
- Referral
- NPS
- Growth revenue
- Market share
- Profitability
- Share holder value
People
Product/service offering
Process
Customer Experience
Customer Behaviour
High level company KPI’s
Leading indicators
Lagging indicators
Changesinregulationsandtechnology
developments
Context
Source: based on Schmitt – Managing the Customer Experience
Why is Customer Experience important?

6. 6
75,7
73,6
2014
2015
Customer Experience level in
Portugal detoriated
Source: Capgemini World Retail Banking Report 2015

7. 7
For Gen Y the Customer
Experience level is low…
75,0
71,1
Others
GenY
… but relatively high compared
to the rest of Western Europe
68,3
GenY EU
Source: Capgemini World Retail Banking Report 2015

8. 8
44,1%
52%
3,9%
50%
42,3%
7,7%
Percentage of customers with positive
experiences and negative experiences
increased in Portugal
2014
2015
Source: Capgemini World Retail Banking Report 2015

9. 9
Customers with with a positive experience are
five times more likely to stay…
… than customers with
a negative experience
Source: World Retail Banking Report 2014, Capgemini

10. 10
New generation setting
new standards for banking

11. 11
New generation setting
new standards for banking
bunq

12. 12
Rethink your business model

13. 13
Source: Clayton Christensen (Harvard)
Performance
Time
Performance improvement
mainstream
Potentially disruptive technology
Disruptive technologies move up
market and eventually displace competitors

14. 14
Source: Clayton Christensen (Harvard)
Performance
Time
Disruptive technologies move up
market and eventually displace competitors
Dvd per mail
Digital movies
Digital series via Ps3/4, Xbox, tablet

15. 15
83% of executives acknowledge that
customers are comfortable with
FinTech firms
Source: Capgemini World Retail Banking Report 2015

16. 16
Customer
Distribution /
Front Office
Manufacturing /
Back Office
Market Infrastructure
Individual
Institution
Investing/
WealthMgmnt
Personal
Savings
Lending
Capital
Raising
Source: based on illustration ‘Financial Services Value Chain Supermarket Age’ by Doug Nelson
Payments
= flow of capital
Current value chain is under pressure…

17. 17
Customer
Distribution /
Front Office
Manufacturing /
Back Office
Market Infrastructure
Individual
Institution
Investing/
WealthMgmnt
Personal
Savings
Lending
Capital
Raising
Source: based on illustration ‘Financial Services Value Chain Next Gen’ by Doug Nelson
Payments
…Financial services unbundled and revisited
Independent, digital front ends
API-driven middle- and back office
Electrification of market infrastructure
Independent , digital front ends and middle- and back office

18. 18
It is not the strongest of the
species that survives,
nor the most intelligent
that survives.
It is the one that is the
most adaptable to
change.
- Darwin -

19. 19
Digitization
Simplification
& Agility
Data &
Insights
Your roadmap should have 3 goals

20. 20
Digitization
Simplification
& Agility
Data &
Insights
Your roadmap should have 3 goals

21. 21
Branch
ATM
Phone
Internet
Mobile
Branch
ATM
Phone
Internet
Mobile
Branch
ATM
Phone
Internet
Mobile
Branch
ATM
Phone
Internet
Mobile
40%
50%
60%
70%
80%
90%
20% 25% 30% 35% 40% 45% 50% 55%
Customers with positive experience with channel (%)
ChannelImportance(%)
2011 2014Gen Y (18-34 years) Others
Gen Y drives importance digital

22. 22
“Yes, they’ve got WiFi here”

23. 23
Digital praying in a church
in France

24. 24 Customers Using Channels at Least Weekly (%), 2014–2015
Customers (%) in
2015
Customers (%) in
2014
Branch
Internet
Social Media
Mobile
60.9%
65.9%
Western
Europe
20.1%
28.7%
Western
Europe
11.2%
21.9%
Portugal
45.9%
65.7%
Portugal
9.9%
13.7%
Western
Europe
12.4%
12.6%
Portugal
6.5%
7.7%
Western
Europe
5.7%
6.6%
Portugal
The Portugese are using digital channels
more and more
Source: Capgemini World Retail Banking Report 2015

25. 25
44,8%
42,6%
48,0%
32,3%
34,4%
30,7%
11,2%
11,3%
10,9%
8,9%
9,1%
8,6%
2,7%
2,7%
1,8%
0%
25%
50%
75%
100%
First Hear
Research
Apply
68,4%
61,2%
72,0%
19,3%
25,5%
18,2%
6,4%
4,9%
6,6%
4,8%
6,4%
3,0%
1,1%
2,0%
0,1%
0%
25%
50%
75%
100%
First Hear
Research
Apply
Western Europe
Portugal
Branch
Internet
Mobile
Phone
Social Media
Branch
Internet
Mobile
Phone
Social Media
Respondents(%)
Respondents(%)
Compared to Western Europe, Portuguese customers
have higher preference for branch banking
Source: Capgemini World Retail Banking Report 2015

26. 26
Customer
Life Cycle
Awareness
Orientate
Buy
Receive
Use
Service
Digitization starts with customer
journey mapping
Advise
Technology
Voice of the customer:
I want..., I need...
Voice of the employee:
I want..., I need...

27. 27
Customer
Life Cycle
Awareness
Orientate
Buy
Receive
Use
Service
Each Customer Journey has an customer
side and organization side
Processes
Advise

28. 28
‘Beware of putting
lipstick on a
pig‘‘

29. 29
How to become
really digital?
FRONTEND
hello customer
ISN’T THIS
ENOUGH?
self
directed
CAN I DO MY
BANKING MYSELF?
the customer is
becoming part of
the processes!
only decoration?

30. 30
Mobile is the most powerful sales- and
service channel of the future
NL: a mobile
customer has
11 times more
‘contact’

31. 31
Want to open an account?
Just use your
smartphone

32. 32

33. 33

34. 34
The new Rabobank Online
Banking Application, it’s all
about you

35. 35

36. 36
Digitization
Simplification
& Agility
Data &
Insights
Your roadmap should have 3 goals

37. 37
Customer
Life Cycle
Awareness
Orientate
Buy
Receive
Use
Service
In the end you will need to change your
mid- and back office as well
Processes
Midoffice
Customer
Relationship
Management
Customer
Financial
Management
Document
Management
Communication
Management
Business Process
Management
Security
Advise

38. 38
Are you the oil tanker
or the pilot boat?

39. 39
Are you the oil tanker
or the pilot boat?

40. 40
Source:

41. 41
Source:
Marketing
Product Management
Data Analytics
Service Management
IT

42. 42
Source:
Product Management
Processes
User Experience
Data Analytics
Chapter lead

43. 43
Source:
A maximum
of 150 people

44. 44
The transparency and the
mutual understanding
between employees is an
enormous improvement
We have been working in this agile
way for 3 months now and it already
leads to advantages: improved
communication and more mandate
for employees and squads
It also created more
fun in the teams.The
atmosphere is very
good!
[finno]
In a pre-Agile era it took
days to solve an issue.
Now it only takes
15 minutes.
Source:
Compared to the past,
squads and employees have
a better view on their
personal attribution to the
bank’s strategy.

45. 45
Digitization
Simplification
& Agility
Data &
Insights
Your roadmap should have 3 goals

46. 46
Cross-channel ‘Relevancy
Engine’ Observation
(data &
information)
Trigger
(right message,
right channel)
Interpretation
(intelligence)
Reaction
(call to action)

47. 47

48. 48

49. 49

50. 50
The future marketeer is
a nerd with empathy
Privacy as a
currency

51. 51
Source: online survey Edelman ‘Brandshare’
15.000 respondents in 12 countries
Privacy as a currency

52. 52
Awareness
Orientation
Buy
Receive
Use
Service
Advice
Retention
How to create customer value using
(big) data?
360° customer view (Social-CRM)
Workflow management
Social listening / external data sources
Datawarehouse / realtime data
Big data analytics / predictive modelling
Digital marketing & services (inbound)

53. 53
Customer Intelligence &
Social Listening
Customer
Journey
mapping
SEO optimization
Client
telling app
Visualization
User Experience
Marketing &
Campaign management
Mobile app.
development
Personalization
Odigo
contact center
Digital Experience
Optimization (DXO)
Channel
Performance
management
We help you transform and bring innovations
and solutions across the customer lifecycle
Awareness
Orientation
Buy
Receive
Use
Service
Advice
Retention

54. 54
Pascal Spelier
Managing Consultant
Digital Customer Experience |
Banking & Insurance
Reykjavikplein 1,
Utrecht, The Netherlands
Mobile:+31 (0) 6 53 29 90 17
pascal.spelier@capgemini.com
Thank you!
@spelier
www.slideshare.net/pascal.spelier
www.linkedin.com/in/pascalspelier
www.worldretailbankingreport.com