the global retail banking digital marketing report 2013

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The Global Retail Banking

Digital Marketing Report 2013

How digital technologies, social media and the explosion of

data are redefining customer engagement models

EFMA - WIPRO


The EFMA WIPRO Report

HIGHLIGHTS

Everywhere we meet banks we find that online and

mobile banking are at or near the top of their agendas:

What services to introduce, how to engage customers,

and how to use customer information to personalize

marketing are typical questions.

There is a high degree of uncertainty because banks

are still learning and the digital environment is

constantly changing.

The study is based on an online survey of nearly 100

banks around the world, and interviews with 15 banks

in countries ranging from the United States to India.


Why is Digital marketing important?

The vision of banks is that digital channels will be complementary to branches

Inge Ampe

General Manager Marketing,

ING Belgium

The blurring between the digital

and the offline world will

continue, so that marketing will

be forced into a 360° approach

towards customers and towards

analytics.

Kartik Jain

Executive Vice President and Head of Marketing,

HDFC Bank

“Banks will need to be present where their customers

are...and customers are spending more time on

Content, Community and Commerce that is being

delivered through digital channels. The challenge for

marketers is to engage them in ways that are relevant

to the customer and to the medium.”


Vision for digital channels

Digital channels are also producing significantly more data which can be used to

profile customers, understand their needs, and target them in smaller and smaller

segments with the appropriate offers

Source: The Global Retail Banking Digital Marketing Report 2013

80% Complementary channels to branches

91% Primary channels for transactions

67% Primary channels for customer service

34% Primary channels for sales and advice


Digital Penetration

While the overall global trends are clear, there are nevertheless important differences

between countries and regions, particularly when you look more closely at speed of access

which affects the services that can be offered. There is a wide difference in Internet use

between developed and developing countries, less so in mobile

Percentage of individuals

using the Internet

Source: International Telecommunications Union 2013

77%

Developed

31%

128

89

Mobile phone subscriptions

per 100 people

Developing Developed Developing


Marketing Mix

Impact of digital channel in marketing mix of expenses at banks

Jessica Niewierra

Director Internet and Mobile,

ABN Amro

Digital marketing offers great

opportunities to add

context to your communication


The Digital Marketing Capability Index

Impact of digital channel in marketing mix of expenses at banks

One-to-one personalisation

Real-time event driven marketing

Test and learn*

Measurement of ROMI at campaign level*

% of banks with the

capability

Real-time single customer view

Segmentation using customer lifetime value

Micro segmentation

Predictive analytics

35%

40%

61%

71%

47%

36%

38%

41%


* Approximate average usage by banks in digital marketing



Only a small proportion of banks are at the highest level of maturity, which is Level 4

Percentage of banks at each digital marketing maturity level


17%

Level 1

39%

30%

13%

Level 2 Level 4 Level 3



There are some geographic differences in capabilities, but differences by size of bank are not so obvious

• Tier 2 banks by asset size are just as capable as Tier 1 banks

• Banks in developing countries are lagging behind

• Direct banks in our survey are at the highest levels of maturity

For banks in higher income countries, the range of capabilities seems to

depend more on their branch vs. digital focus, and on their

strategic/investment priorities


Assessment of Digital marketing capabilities

Real time single customer view capability is relatively low but banks expect this to increase

significantly


Test and learn

The use of a “test and learn” in digital marketing campaigns is surprisingly low

Percentage of banks at each level of test and learn use


68%

0-25%

of campaigns

14% 7% 7%

26-50% 76-100% 51-75%


Return on marketing investment

The measurement of “return on marketing investment” is also still very low

Percentage of banks at each level of ROMI use


36%

0-25%

of campaigns

7% 4%

25%

26-50% 76-100% 51-75%

29%

Aggregate

level only


Case example: Channel transformation and digital

marketing drives significant growth in product sales

• Cross-channel collaboration by seamless

hand off of leads from online to offline

channels

• State-of-art digital marketing platform with

ability to dynamically target the customers with

the right value proposition

• Channel agnostic common application

platform with instant decision making across

products facilitating multi product purchase

• Moving to paperless world by use of e-

signatures, emailing of welcome kits and

electronic disclosures

• Guided service delivery to enable help for the

phone channel advisor throughout the sales

process


Social media and customer engagement

Most banks are present on popular services but there is still relatively low use of other

social media options. Much less common is the use of user generated content (14% of

banks), customer reviews (27% of banks) or blogs (31% of banks). The provision of

advisory services and communities on Facebook will grow, but mixed views on transactions

Percentage of banks using each type of social media


84%

Facebook

27% 31% 14%

Blogs User-Generated

Content

Customer

Reviews

63%

Twitter

54%

YouTube


Use of Social in Financial Services

Banking transactions

through Facebook

Credit scoring using

social profiles

Building community of

product users

Service and advice

through Facebook

Offer delivery to

Facebook account

Product launch

promotion

Barclaycard, US Moven, US Denizbank, Turkey

Swish, Sweden mBank, Poland ASB, New Zealand


The potential of ‘Big data’

Big data is still at very early stages in retail banks but a significant increase in

deployment is expected

Percentage of banks with big data projects in each area

Customer event management

Enterprise content management

Sentiment analysis

65%

46%

35%

Current Planned Total


Big data use cases for digital marketing

To build a real time 360 degree view of the

customer profile to facilitate multichannel

interaction management

For location based marketing, given the

proliferation of mobile marketing

To recognize the most valuable customers and

their network, and leverage the information for

new dimensions of micro segmentation

To identify the right channel and to deliver the

right sales value proposition for customers

To improve and innovate on products and

services in real time, leveraging the power of

social collaboration


Conclusion

Real time event driven marketing & one to one

personalisation are areas which need focus

Single customer view and marketing processes

are weakest areas

Small banks are not at a disadvantage; direct

banks are leaders

Social media now well-established but uncertainty

on next steps?

“Big data” is an emerging focus area with high

potential impact


For more details please visit the link below:

http://www.wipro.com/Documents/the-global-retail-banking-

digital-marketing-report-2013.pdf

http://www.wipro.com/Documents/the-global-retail-banking-digital-marketing-report-2013.pdf
















As a global not-for-profit organisation, Efma brings together more than

3,300 retail financial services companies from over 130 countries. With

membership from almost a third of all large retail banks worldwide,

Efma has proven to be a valuable resource for the global industry,

offering members exclusive access to a multitude of resources,

databases, studies, articles, news feeds and publications. Efma also

provides numerous networking opportunities through work groups,

online communities and international meetings.

For more information: www.efma.com

About Efma


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the global retail banking digital marketing report 2013

Technology

digital marketing important

digital technologies

digital environment

abn amro digital marketing

head of marketing

marketing mix of expenses

primary channels

vision of banks