Digital Banking Strategies:Opportunities to Connect with Customers

Digital Banking Strategies | 2

Inroduction ............................................................................................................................................................ 3

Drivers for Digital Experience ............................................................................................................................. 4

Building Digital-First Experience ........................................................................................................................ 5

Digital-First Opportunities .................................................................................................................................. 6

Customer Acquisition ............................................................................................................................................7

Welcome & Onboarding ...................................................................................................................................... 9

Support .................................................................................................................................................................. 10

Loyalty and Retention .........................................................................................................................................11

TABLE OF CONTENTS

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INTRODUCTION

Digitalization is changing the entire customer relationship. Banking customers can now complete the majority of personal finance transactions on a variety of devices and platforms, without once stepping into a bank branch.

A strong digital banking strategy creates a connection between every point of communication, at every time of need, to create a seamless experience for customers. It also encourages customers to choose digital channels as the primary means of connecting and transacting throughout the customer journey.

Banks can employ digital-first banking strategies across product ranges and customer interactions, whether that’s day-to-day banking, credit cards, loans, or any other personal finance transaction.

In this whitepaper on digital-first strategies for banking, you’ll learn:

• The consumer and industry trends driving a digital-first transformation

• Key considerations for successfully executing a digital-first strategy

• How banks can use personalized video engagement at every touch point of the customer lifecycle

HOW ADOPTING A DIGITAL-FIRST STRATEGY CAN CREATE NEXT-GEN CUSTOMER RELATIONSHIPS

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DRIVERS FOR DIGITAL EXPERIENCE

Consumers’ digital experience expectations are formidable, formed by long-term interactions with tech-sophisticated industries like ecommerce and travel. Personalization as offered by Amazon and mobile-led businesses such as Uber have reset the status quo and consumers now expect the same from their banks and financial providers.

In the financial landscape, consumers are opting for digital channels first to execute transactions – such as transferring funds and paying bills – and answer their questions. And FinTech continues to disrupt how consumers interact with financial service providers, with products like digital wallet apps, person-to-person money transfer, and social lending.

1 The Future of US Retail-Banking Distribution, McKinsey & Company2 2015 Mobile Banking, Smartphone, and Tablet Forecast, Javelin Strategy3 What Do Millennials Want from Banks?, American Banker

Banking is on the fast-track to digital, with digital and mobile in the spotlight:

95% of transactions will be digital by 2019

95%63%

63% of U.S. adults use digital banking

92% of millennials prefer a bank with

online services

92%

It’s no longer a question of digital channels or “other” when it comes to the customer journey; it’s now intertwined. Customers are growing accustomed to companies anticipating their needs and offering what they’re looking for — sometimes before they even know what that is.

— Trends 2016: North American Digital Banking, 2016, Forrester Research

DIGITAL EXPECTATIONS IN THE AGE OF THE CUSTOMER

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BUILDING DIGITAL-FIRST EXPERIENCES

Digital-first offers the best opportunity to change customers’ behavior and guide them towards the path that’s both beneficial to their banking transactions, and their long-term relationship with the bank. This approach teaches customers to choose digital channels as their primary mode of interaction (over human assisted ones) and directs them to next-best actions to maximize the value and utility of their financial products.

Digital-first experiences that are successful for both consumer and financial provider focus on three essential elements:

Individual First: Knowing and understanding the needs of individual customers are important aspects of maintaining trusting loyal relationships between banks and their customers. Don’t let the uniqueness of each customer get lost in large market segments; they’re individuals with histories, preferences, behaviors, motivations and spending habits. Embracing these insights and identifying specific and actionable data points means the ability to create truly individualized experiences that understand the customer and address his needs with “why” – far beyond the “what” and “how.”

Relevant and Valuable Content: Delivering relevant, useful information keeps the customer engaged and continues the evolution of the relationship. Banks should identify and recommend next-best actions for the customer to take that maximize the value and utility of the product or service. A focus on educating and informing drives customer satisfaction by providing insights that are actionable. It also saves consumers time, decreases questions and stress, and helps to provide a path to achieving larger financial goals.

Integrated Delivery Strategy: The next era of communications moves beyond omni- and multi-channel. Siloing communications or focusing on a single delivery channel like email, account portal, or mobile app, often misses a sizable portion of the target audience if it’s not a channel they prefer. It’s important to deliver messages to consumers via the channels they use, and at the most favorable time.

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CREATING VALUE-RICH DIGITAL INTERACTIONS THAT SOLIDIFY BRAND RELATIONSHIPS

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DIGITAL-FIRST OPPORTUNITIES

To provide a forward-thinking and innovative customer experience, banks must embrace digitization throughout the entire customer journey. These digital-first customer experiences allow for new sources of value for the customer, differentiating the financial provider and driving long-term customer loyalty.

By offering valuable content for consumers across the entire customer lifecycle, banks can realize better relationships and engagement. The results can be numerous, like increased activity, higher spend, more digital and self-service tool use, improved benefit use, and increased savings or investment contributions, frequency of product use, and adoption of value-added digital tools.

Personalized video combines data, creative elements, and messaging to create and deliver a compelling and relevant story unique to each consumer. Built in a modular fashion and designed for reuse and scalability, SundaySky SmartVideo employs real-time scene sequencing that enables customer communications based on their current circumstances, preferences, and status. It is designed to directly and sustainably influence consumer behavior by directing them to the next-best action.

Personalized video can be used throughout the customer lifecycle to inform and guide across touchpoints including:

Customer Acquisition

Welcome & Onboarding

Customer Service & Support

Loyalty & Retention

USING DIGITAL ASSETS TO CREATE EXCEPTIONAL DIGITAL EXPERIENCES

DIGITAL-FIRST BANKING STRATEGIES WITH PERSONALIZED VIDEO STORYTELLING

“Digital businesses win, serve, and retain customers by continuously creating and exploiting digital assets to simultaneously deliver new sources of customer value and increase their operational agility.”

— The State Of Digital Banking, 2016, Forrester Research

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CUSTOMER ACQUISITION

SundaySky SmartVideo allows financial institutions to combine first-party consumer data with on-site behavior and publisher site or other second-party data to create a personalized experience that guides prospective customers throughout the acquisition process.

Make the most out of each paid media oppotunity by highlighting the most relevant features and benefits through a personalized video ad. Or, retarget prospects who have abandoned a loan or credit card application, driving them back to finish the process.

For example, these SmartVideo example scenes show a prospect’s car model and applicable discount based on his abandoned application, aimed at bringing him back to finish and bind his insurance policy.

IMPROVE ADVERTISING RELEVANCE & REACH

Car model and state drive dynamic creative elements including text and images.

Viewer eligibility determines scene selection and applicable discount based on abandoned application.

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Drive overall conversions by encouraging consumers to complete abandoned credit card or loan applications. Follow up via email with site visitors who have abandoned a loan or credit card application they have started or applied for but have not yet completed.

Answer ‘What’s Next’?

FOLLOW UP ON ABANDONED APPLICATIONS

• Educate how application questions impact the offer for each individual

• Incorporate data collected at each step for a personalized SmartVideo message

• Provide information as-needed with always-available videos

• Explain agreement terms and next steps

• Highlight the key rewards and benefits of relevant products

• Provide suggestions for other products and services that might be of interest

Reduce application abandonment and help prospects understand the full value proposition of the product they are applying for. Use SmartVideo to assist customers in completing applications correctly by walking them through the process and proactively addressing common questions.

PROVIDE APPLICATION ASSISTANCE

CUSTOMER ACQUISITION (CONT’D)

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WELCOME & ONBOARDING

The first 90 days represent the best opportunity to solidify and grow a relationship with new card or account holders. SundaySky SmartVideo can help guide new customers and empower them to get the most from new products. Preparing the right path simplifies their journey, leading to greater customer satisfaction and share of wallet.

• Strengthen your new relationship with a video that reviews terms and benefits, and last steps to activating a new product

• Drive digital adoption and promote self-service tools including reminders to set up alerts, paperless statements, and autopay

• Walk through the first statement and provide a reminder of different payment options

PROVIDE A TIMELY WELCOME

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SUPPORT

Driving account holder engagement doesn’t end after the initial onboarding period. There is a myriad of touchpoints that impact customer experience. If they’re mishandled, it could result in lower retention or negative brand impressions. SundaySky SmartVideo lets financial providers deliver and reinforce important information or messages at key points throughout the account holder’s journey.

• Explain fees and offer tips on avoiding fees in the future, like setting up automatic payments and alerts

• Engage immediately with information about their POS decline, including fraud alerts and balance notifications

• Ease anxiety associated with unidentified transactions by providing steps to dispute charges, along with an overview of the process

• Reinforce digital behaviors such as activity review or mobile payments

DIGITALADOPTION SCENES

CYCLICAL OREVENT SCENES

FRANCHISEBENEFIT SCENES

Make Payment

Late Payment FICO Score

Alerts Card ReissuePurchase Benefits

Fees IncurredConcierge Services

Activity Review

Payment Confirmation

Redeem Rewards

Check Balance

Billing Due Date

Rewards Summary

Autopay POS DeclineTravel

Benefits

Paperless Statements

Transaction Dispute

Cash Back

Anniversary

ENHANCE CUSTOMER CARE

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LOYALTY AND RETENTION

These SmartVideo example scenes show variation between

an account holder’s birthday and a year-in-review story.

A successful digital-first strategy benefits both customers and financial service providers. By assisting and educating customers on what matters most to them while driving them to leverage digital channels first, financial institutions can strengthen customer relationships, move to top of wallet and increase share of wallet, and increase customer loyalty by supporting consumers throughout their financial journeys.

SundaySky SmartVideo allows banks to provide personalized video experiences to customers’ that celebrate milestones, remind them of rewards, and encourage further product use.

• Celebrate an event with a video delivered on a birthday, product anniversary, or any number of special moments.

• Highlight the right benefits and rewards for every cardholder, keeping sports fans in the game with pre-sale ticket deals, and travelers secure with luggage insurance.

• Help keep customers on track with their financial goals by offering and explaining transaction trends, usage, and valuable metrics, like FICO scores.

• Extend personalized and high-quality financial advice to millions of mainstream customers at a lower cost than that of incumbent firms and financial advisors.

PROMOTE A REWARDING RELATIONSHIP

ABOUT SUNDAYSKY

SundaySky is transforming the relationship between

brand and customer through personalized video. Our

platform, built on proprietary SmartVideo technology,

combines the power of video with personalized

storytelling at scale to foster long-term customer

relationships. The SmartVideo Platform lets marketers

communicate to an audience of one and easily create,

manage and optimize realtime personalized video

programs throughout the customer lifecycle. AT&T,

Comcast, Allstate and other industry-leading brands

partner with SundaySky to engage prospective and

current customers, resulting in higher revenue, lower

costs and deeper loyalty. SundaySky is headquartered

in New York City with offices in Tel Aviv and Tokyo.

229 W. 36th Street, 2nd Floor, New York, NY 10018

sundaysky.com | Tel: 212.929.8111