designing a better bank
TRANSCRIPT
E V O L V I N G M O B I L E B A N K I N G
WE HELP CLIENTS GO BEYOND PRODUCTS & SERVICES THROUGH THE DESIGN OF SEAMLESSLY CONNECTED
BRAND EXPERIENCES.
BRAND + EXPERIENCE DESIGN + TECHNOLOGY
= BRAND INTERACTIONS TM
Focused on both front stage & back stage parts of the
service, including value chain and operations.
Focused on providing a seamless
multichannel customer experience.
Focused on
digital experience.
SERVICE DESIGN
(SD)UX
BRAND INTERACTIONS IS BROADER THAN DIGITALLY-LED UX. IT IS T-SHAPED & UNDERSTANDS THE ENTIRE CUSTOMER JOURNEY.
CUSTOMER EXPERIENCE
(CX)
DESIGNING A SMARTER
MOBILE BANKING EXPERIENCEH O W R E T A I L B A N K S M U S T M O V E B E Y O N D T R A N S A C T I O N A L R E L A T I O N S H I P S
60%35% 53%
Millennials say they would be likely to bank with a non-financial service
company.
Millennials think all banks have the same offerings.
Estimated percentage of banking revenues that will be at risk by 2020
due to disruption.
Young adults have a transactional relationship with their banks
This has created a gap between their needs and the services banks offer.
They want financial advice, strategies, and support.
But they don’t see their banks as catalysts to financial well-being.
Banks need a fresh UI, using existing data to visualise financial standing.
Day-to-day banking apps designed with customer empathy will better meet the needs of both young adults and banks.
As convenience increased, customers relied less on local branches - opportunities for banks to deliver personalised support and build meaningful relationships with their customers has started to disappear.
Digital Services have eased the reliance on humans.
But they aren't developed enough to provide a similar level of service.
STORAGE AND ACCESS TO
MONEY
A CLEARER UNDERSTANDING OF
THE FINANCIAL PRODUCTS THAT ARE AVAILABLE TO THEM
INFORMATION ON MANAGING AND REDUCING
DEBT
SAVING STRATEGIES
AND SUPPORT
AN EASY WAY TO PAY BILLS AND
AUTOMATE TRANSACTIONS
WAYS TO AVOID BIG FINANCIAL MISTAKESTHE ABILITY TO
TRANSFER MONEY TO FRIENDS, FAMILY
AND COLLEAGUES
This change in customer behaviour has amplified the disconnect between young customers and the banking industry. The value-added services that banks provide in-branch simply don’t reach customers whose banking experience centres around their phones.
For today's young adults, the banking experience is almost entirely transactional.
Their most common day-to-day banking tasks take place on their laptops and smartphones, and when they do need help, they don't turn to their bank for support or guidance.
3. FORECASTING5. MOBILE
PAYMENTS & MONEY TRANSFER
Key touch-points in the existing customer journey. Opportunities to innovate and build more extensive, valuable service offerings.
2. SAVING & DEBT REDUCTION
1. BALANCE & ACITVITY ENQUIRY
4. EDUCATION & SUPPORT
1. Balance & Activity Enquiry
The current relationship between banks and customers is akin to a glorified spreadsheet
Why not model the banking
interface around a more
contemporary, timeline influenced
structure?
The timeline should
incorporate contextually
relevant information,
transactions and call to
actions.
This activity should conglomerate all accounts.
Metadata should separate transaction types into
distinct buckets.
UI elements, typography and colour should be
used to signpost (warnings, spending patterns,
trends)
Young adults have the perception that banks are primarily focused on helping people save for large goals - a down payment on a house, retirement - things that cash-strapped 20-somethings know they’ll eventually want, but don’t seem immediately relevant.
2. Saving & Debt Reduction
Millennials most common day-to-day banking tasks take place on their laptops and smartphones, and when they do need help, they don't turn to their bank for support or guidance.
Motivational messaging, imagery and
alerts should contextualise how
spending patterns affect saving goals.
Letting users know how far they’ve
come, and how many contributions
they have left, make goals more
attainable.
Simple actions like getting them to name a goal, decide how much they want to save and when they want to reach their goal, banks can help customers plan an easy to follow contribution schedule. And adding images to goals remind people what they are saving for.
Users should be able to set targets by quickly assessing trends in spending patterns.
Helping mobile-centric customers understand how to save is an important factor to increasing customer loyalty.
In addition, using anonymous data to
overlay spending patterns, wage levels
by age and job role, should incentive
career growth and better allocation of
available finance.
(for better of worse) Social networks
give people a sense of place and
belonging. The banking experience
should strive to give users a better
sense of their standing.
Money might be a serious affair, but it
represents the ultimate form of
measured success.
Aspiring to Gameify saving, spending
and earning targets will have a positive
impact on the relationship between
consumers and their banking services.
Why don't banks take a leaf out of
other industries?
48% of millennials express an interest in real-time and forward-looking spending analysis and 67% want their bank to provide tools and services which help them create and monitor budgets.
3. Forecasting
Saving time through smart budgeting, intelligently using data from other sources.
Mobile apps should calendar sync,
using API’s from other apps to advise
on spending decisions
There is so much data available in a
device, but banking apps don’t interact
at all with other applications that might
inform advice or alerts.
For example, the App should sync life events, such as
friends’ weddings, holidays, dates when tickets are
booked for national or international trips, asking the
user to set savings goals around potential periods of
spending fluctuations.
In an increasingly freelance/sole-trading economy,
tax advice or payments should be served within the
timeline.
Such a complex affair, but one so easily incorporated
into the baking experience - the bank already has all
of your personal details - why cant these be put to
better effect?
The institution that you are doing business with provided you with information for making smart investments, or said ‘hey, this might be something worth looking at.
4. Education & Support.
Proactive help in investment decisions, in context.
Contextual advice should be incorporated into the
users ‘feed’.
21% of users check their bank balance at least once a
day and 55% do it at least once a week. Foolish to
miss an opportunity to engage - no?
For example, rather than a simple
notification of a salary being paid, advice
around savings goals should be served.
The ability to quickly video chat with an
advisor will alleviate reliance on in-branch
appointments.
Apps like Babylon are doing this for
healthcare, there is no reason why banks
shouldn't too.
5. Mobile Payments
Providing a smarter service over splitting payments in an increasing shared economy.
Cultural shifts makes it acceptable to
share everything from assets to bills.
Banks need to develop services
that make it easy for customers
to quickly split payments
inequitably (utilities, rent,
drinks, petrol, etc.).
HOW CAN BANKS
TAKE CONTROL?
Geofencing to invoke triggers within certain
environments. Ie: Overlay options to
purchase tickets when within a station.
Importantly, banking Apps should be
proactive in leading the transaction.
Or how about noticing the user is in an
airport, offering currency purchase and
insurance
Getting smarter on understanding when a
user is abroad, to advise on irregular activity.
Minor front-end change. Surely this should
be standard by now??
REAL TIME NOTIFICATIONS OF BILL PAYMENTS…?
AFFORDABILITY INDICATORS…?
INCORPORATING E-COMMERCE WISH-LISTS…?
AUTOPAYBACK & PAYMENT REQUESTS…?
INSTANT BORROWING TILL PAYDAY TO COVER PURCHASES…?
DIRECT INCORPORATION OF RETAIL LOYALTY SCHEMES…?
ONE CLICK CHARITY DONATIONS FOR FRACTIONAL SPENDS…?
These features are (largely) front-end changes.
Data already exists to implement these ideas - it must be utilised more effectively across touch-points through better mobile banking interfaces.
Banks need to be more than a passive enabler of transaction.
They must strive to establish better contextual understanding of their customers needs
With the leverage to dictate the entire spending experience, they are positioned to set a standard for quick and easy transactions, that benefit them, suppliers and users.
HOW MIGHT THIS
COME TO LIFE?
Meet Jessica.
Its payday.
Jessica sees most her recent transactions,
taxonomised into spending buckets
She’s made a saving goal. Cash
automatically transfers to her holiday pool.
She's assigned a motivational image to the
goal.
As its the end of the quarter, the app offers
Jessica a view of her earning trajectory.
She’s making good money for her age, but
not so good for her job role.
The app ghosts her salary against averages
from across the country.
She speaks to her boss and receives
a pay rise. The extra cash enables
her to reach her goal early.
She is offered the opportunity to
start a video chat, to discuss
whether she might want to invest
some of the extra cash.
She chats to the advisor and decides
she’s in a position to start saving for
a house.
But first things first, she’s off to
Brazil. The app senses she’s at the
aiport, and offers her a deal on
foreign currency.
The next payday arrives soon after.
Jessica is offered a budget review.
She’s been spending a bit too much
on her weekends.
In October, she makes a
conscientious decision to offset her
heavy spending from the month
before.
Jessica has also set a health
goal.
Her app integrates with
Healthkit on her iPhone. She’s
been doing a fair amount of
exercise, but spending far too
much money on alcohol.
She sets a goal to reduce her
expenditure on eating out and
drinking.
Next month Jessica’s best friend is
getting married.
The App detects the event in her
calendar. As the event may cause
erratic financial activity, it suggests
setting up a saving bucket.
And as Jessica is earning more, she
decides to set aside a decent amount
for a nice gift.
As the year approaches its end, Jessica
takes a snapshot of her spending
activity.
She's earning more money this year,
but wants to save for a house.
Her goal for the next year is to keep
spending in line with this year, keeping
within her spending trend this year -
she sets a threshold to ensure she is
notified should she exceed this limit.
The banking eco-system has moved from branch-centric to mobile-centric.
Banks must cultivate relationships with their digitally native customers, that start within the confines of mobile and online apps, and continue throughout the customer journey.
IT’S TIME TO RE-THINK THE BANKING INTERFACE FROM THE GROUND UP.
Anant Sharma, CEO
Matter Of Form.
+44 (0) 203 141 2000