Retail Banking: A Six-pronged Approach to Make Digitally Savvy Customers Feel Valued

Cognizant PROCESSING RETAIL 1111 3553 3333 40t BANKING PAY A Six-pronged Approach to Make Digitally Savvy 1234 557 555 3333 vwvw Customers Feel Valued Success on the digital front is crucial not only to meet the expectations of the increasing number of digitally savvy customers, but also to grow revenues. We propose a six-pronged approach that retail banks can adopt Develop a customer- Leverage mobility Leverage analytics centric strategy 9. Enable a seamless Modernize Leverage social bing S Go gke experience across channels branches computing and ATMS POSITIVE CUSTOMER EXPERIENCES CAN TRANSLATE TO SERIOUS CASH Improved Customer Experience Revenue Generation Across Categories Better customer experiences can be worth Ş161 million in annual revenue for U.S. banks.' Additional purchases 81 from existing customers millions (3 Revenue saved by millions lower churn 7 New sales driven by word of mouth millions Improved customer experience has greater impact on customer loyalty than price, according to forrester. For banks, customer experience alone drives 55% of loyalty.? When customer experience and price-value are combined, loyalty percentage goes up only to 56%, signifying that banks need to attach greater importance to customer experience than price.3 WHAT CUSTOMERS WANT | Anytime anywhere banking| of US customers want 60% anytime access.“ More than 40% of online banking happens on smartphones or tablets.5 33% of those who use mobile banking say their mobile banking experience 60% is a reason to stay with their 40% banks. (Yodlee) 33% || Service on par with other industries| Customers are demanding individualized online and Customer expectations are shaped by their experiences with companies like Amazon, Google and Apple. mobile experience with| richer content and features, and higher levels of engagement. A LOT OF CATCHING UP TO DO Banks' customer experience improvement efforts fall significantly short of consumer expectations.7 28% Customers The customer experience at my bank has improved over the last 12 months 78% Executives WHAT SHOULD BANKS DO? || Put customers first || Focus on mass customization mobile users, features that, for example, allow them to rearrange tabs and functions within the mobile application are very important. For more than 75% Provide easy-to-use and optimized mobile interface For about mobile users, an optimized Web site/landing page is the most important app/Web site feature. 40% Provide sophisticated personal financial management (PFM) tools Improve security More than mobile banking users have expressed security concerns." 70% Eight out of 10 mobile banking apps have build and configuration weaknesses." Deploy solutions offering biometric authentication, cardless cash withdrawal, and pre-staging ATM cash withdrawals for self-service transactions. ||Enhance mobile and online capabilities| Increase self-service capabilities Focus on interactive mobile services with virtual assistance. Only 25% of mobile banking customers and 35% of online banking customers believed the services are interactive.? 25% 35% Provide anytime, anywhere advisory services Focus on Apps - Consumers prefer apps (64%) over a mobile banking Roughly 34% of customers want real-time advice; 50% want advice based on location Web site (57%).14 data provided by their mobile phones." 64% 57% Apps have significantly higher engagement at 66% of total hours 34% 50% per month than the browser 34%.15 Apps and Web sites must be capable of studying customer usage and 66% 34% Provide video conferencing present targeted content and relevant suggestions. over mobile devices and online. || Make the most of customer data CYS Mine customers' Code Halos16 using advanced, predictive analytics to gain a holistic view of their digital usage. CODE HALOS Upgrade IT systems and eliminate data silos to have consistent set of customer data and gain a single customer view. Set up a social media command center to gain real-time understanding of customer sentiment from vast pools of social media chatter. Provide a seamless channel experience| Integrate multiple channels to allow seamless transactions across various channels. Provide branches and call Ensure consistent look and center staff with real-time feel across digital channels to make navigation easy from information about customer activity and interaction with one channel to another. various channels. || Leverage Social Media customers think banks' social media usage 87% is annoying, boring and unhelpful." Persuade customers to follow banks on social media and provide a meaningful engagement via discussions, information sharing, promotions, opinion polls, etc. Social media users generate $2,528 in revenue with their primary bank per year versus non-users who generate$1,262.18 in | Improve the experience of visiting a branch or ATM| ATM|| Create an in-branch mobile experience based on individual Code Halo™M Use technology Send offers to the customer's Provide in-branch like iBeacons to mobiles based on the branch information such as alert bank staff location of financial location they visit when important advisors, current waiting times on mobiles and seek customers walk in SALE NEW SPECIAL customer feedback as they walk out of the door Modernize ATMS with video facility Enable pre-staging ATM transactions, cardless ATM transactions through mobile apps, image-enabled receipts, etc. for customers to chat with tellers and near-field communications (NFC) technologies to provide customized and location-based services. || Digital Banking Enterprise Roadmap|| Customer Onboarding and Account Opening Marketing and Sales Servicing Cross-channel collaboration Insight-driven origination and salesforce enablement Status tracking, status reporting and customer communications Customer experience management Cross-channel marketing and sales enablement Cross-channel Cross-channel application management service management Cross-Channel Process, Case and Data Management Analytics modeling and insight delivery Reporting and dashboarding Multi-mode channel listeners For more information, read our white paper "Retail Banking: Delivering a Meaningful Digital Customer Experience" http://cogniz.at/RetailBankingDCX Sources: 1 http://www.flowresulting.nl/wp-content/uploads/2013/11/The-Business-Impact-Of-Customer-total.pdf 2 Loyalty is measured by a customer's likelihood to consider the company for another purchase, likelihood to recommend to a friend, and likelihood to switch business 3 http://www.forrester.com/Customer+Experience+Drives+More+Loyalty+Than+A+Good+Price/-/E-PRE5164 4 http://newsroom.cisco.com/documents/10157/1142732/CiscoCustomerExperienceReport_for_ USData.pdf 5 http://www.mobilepathtopurchase.com/wp-content/uploads/2013/04/xAd_Mobile-Path-to-Purchase_ Banking_FINAL.pdf 6 http://www.yodlee.com/press_release/mobile-banking-survey/ 7 http://www.peoplemetrics.com/wp-content/uploads/2013/07/A-Shifting-Landscape_Customer-Experience- Trends-and-Priorities-in-Retail-Banking.pdf a competitor. Retail_Banking_ 8 http://www.cognizant.com/InsightsWhitepapers/Segment-Based-Strategies-for-Mobile-Banking.pdf 9 http://www.mobilepathtopurchase.com/wp-content/uploads/2013/04/xAd_Mobile-Path-to-Purchase_ Banking_FINAL.pdf 10 http://www.cognizant.com/InsightsWhitepapers/Segment-Based-Strategies-for-Mobile-Banking.pdf 11 http://www.prnewswire.com/news-releases/research-shows-8-out-of-10-mobile-banking-apps-contain-security- weaknesses-235554441.html 12 http://www.gmc.net/en/end-of-banking-autocracy/ 13 http://newsroom.cisco.com/documents/10157/1142732/CiscoCustomerExperienceReport_for_Retail_ Banking_USData 14 http://www.cognizant.com/InsightsWhitepapers/Segment-Based-Strategies-for-Mobile-Banking.pdf 15 http://www.mobilepathtopurchase.com/wp-content/uploads/2013/04/xAd_Mobile-Path-to-Purchase _Banking FINAL.pdf 16 Code HaloTM refers to the d igital records surrounding people, organizations, processes and devices such as buying behaviors, social media interactions, song preferences, searches, even customer geographic location. This coded information is being used by today's leading businesses to derive meaning to develop an intimate knowledge of anyone they work with, whether customers, employees or partners. For more information, visit http://www.cognizant.com/code-halos, read the book "Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the Rules of Business," and download Code Halos app on the App Store. 17 http://www.cgcginc.com/sites/default/files/pdf/CG_CEXSocialMediaFINAL.pdf 18 http://thegallupblog.gallup.com/2013/08/social-media-is-still-worthwhile.html 19 http://www.cognizant.com/InsightsWhitepapers/Digital-Banking-Enhancing-Customer-Experience-Generating- Long-Term-Loyalty.pdf © Copyright 2014, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, withoutthe express written permission from Cognizant. 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