How are Digital Banking champions meeting customer demands and winning more business?' - Digital Banking Maturity Study webinar in partnership ...
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‘How are Digital Banking champions meeting customer demands and winning more business?’ Digital Banking Maturity Study webinar in partnership with BPFI Thursday 4th February 2021
Welcome
Brian Hayes
CEO, Banking and Payments Federation Ireland (BPFI)
David Dalton
Partner and Financial Services Leader, Deloitte Ireland
© 2020 Deloitte Ireland LLP. All rights reserved. 2
Agenda
Agenda Item: Led By: Duration:
Overview of the Digital Banking
Yvonne Byrne, Deloitte 1:05 – 1:20 PM
Maturity Study & an Irish perspective
• Michael Wodzicki, Deloitte
• Jacek Iljin, mBank
Panel Discussion • Andrzej Pyka, Santander 1:20 – 1:50 PM
• Fergal O’Riagain, KBC Bank
Moderated by: David Dalton
Q&A Facilitated by: David Dalton 1:50 – 2:00 PM
Overview of the Digital Banking
Maturity Study & an Irish perspective
Yvonne Byrne
Partner – Deloitte Digital
© 2020 Deloitte Ireland LLP. All rights reserved. 4
ABOUT THE STUDY
With the 4th edition of Digital Banking Maturity, we are able to
identify key digital trends shaping the banking industry globally
39 countries
38 countries
16 countries 318 banks
1 country 248 banks
115 banks
15 banks
2020 – Global
Biggest global digital banking study
2018 – EMEA with 4th edition, allowing for analysis
2016 – Poland 2017 – Central Europe of key trends among banks
From one country to 38 in just 2 worldwide
Thought leadership Covering 15 additional years to become pioneers in
material for European CE countries and assessing banks’ digital
Financial Congress 100 banks appetite
5 | Copyright © 2020 Deloitte Central Europe. All rights reserved.
ABOUT THE STUDY
In order to compare digital maturity between banks we assessed
three components
FUNCTIONALITIES BENCHMARKING
DBM BENCHMARK
Analysis of 1108 digital functionalities through ‘mystery shopper’ approach on real retail
current accounts in each bank.
Assessment of 6 customer Analysis of digitalization of 13 Functionalities library with An exhaustive overview of
journey steps core banking products world’s leading practices
digital maturity between
banks
CUSTOMER NEEDS RESEARCH
Survey-based research focused on identifying 26 most important banking activities and
preferred channels (branch, Internet, mobile).
Customer preferences between channels in terms of UX ASSESSMENT
most common banking activities
Assessment of digital banking
USER EXPERIENCE S TUDY channels from customer
Supplementing analysis of customers perception of user experience. experience perspective
19 UX scenarios reflecting 10 areas of UEQ survey covering a comprehensive
customer activity from all of the stages of impression of UX of mobile apps
relationship with a bank
Note: Complementary assessment comprise KPIs and Covid-19 response surveys.
6 | Copyright © 2020 Deloitte Central Europe. All rights reserved.ABOUT THE STUDY
We analysed 1100+ functionalities to track the customer journey
focusing on day-to-day banking and expanding relationship
XX # of benchmarked functionalities
Customer Journey step
25 56 64 498 454 11
Information Account Customer Day-to-day Expand End
gathering opening onboarding banking relationship relationship
Availability of Opening process Channels accessibility Account & product Product x-sell (basic)1 Account closing
Customer Journey sub-category
information management
Guidance for new Product x-sell
users Authorization (complementary)2
Card management Bancassurance
Customer support Investment services
Personal finance Beyond Banking
management
Ecosystem and
Transfers and account aggregation
payments
7 | Copyright © 2020 Deloitte Central Europe. All rights reserved. 1. Product x-sell (basic) includes: debit card, credit card, overdraft, cash loan, cheque, bank draft.
2. Product x-sell (complementary) includes: car loan, mortgage, currency account, saving account, term deposit, private banking account.KEY TAKEAWAYS
01 02 03
Digital Banking Maturity Covid-19 has changed banking Digital champions outperform
identifies champions and and fast-tracked development peers on the basis of
leading practices worldwide of digital channels cost/income and ROE
Covering 318 banks from 39 countries, DBM 60% of banks have closed or shortened Digital champions don’t only lead their peers in
analyses digital retail banking in 3 channels, opening hours of branches but many have also number of digital functionalities along the
based on an outside-in ‘mystery shopper’ implemented new digital features, such as fully customer journey, those that are incumbents
assessment of digital functionalities, customer digital processes, e.g. account opening (34%), outperform other incumbents in their country
needs research and UX evaluation. remote identification & verification (23%) and on average on both C/I (-4.0 p.p.) and ROE
contactless payments (18%). (+1.9 p.p.).
04 05 06
Banks still need to close gaps in Challengers tend to be faster Digital champions know UX is
E2E digital sales processes to than incumbents to adopt new a key differentiator driving
better serve online customers trends and innovations customer satisfaction
Digital champions are investing in E2E digital New functionalities typically gain traction faster 65% of digital champions ranked in the top
sales processes and have widened their lead on with challenger banks than incumbents, e.g. bill 10% for analysed UX scenarios. The largest
latecomers for key products, e.g. 51% vs 23% split 27% vs 2%, virtual debit card 26% vs 2%, gaps between champions and latecomers are
for current accounts, 85% vs 34% for credit chatbots with advanced use cases 15% vs 4%, in opening an account 71% vs 23%, buying an
cards, and 84% vs 30% for cash loans. chatbots allowing transactions 12% vs 2%. insurance product 44% vs 7% and beyond
banking service 48% vs 11%.
© 2021. Deloitte 8INSIGHTS FROM DIGITAL LEADERS
Benchmarked markets can be divided in 4 groups in terms of
digital banking maturity
DBM index1 Average Digital Banking Maturity Score By Country
70%
Market pressure from
Digital Digital Digital Digital customers and
latecomers adopters smart followers champions
60% competitors created
Digital champions
50%
Ireland is placed in the digital
40% latecomers. This is no change
from the DBM 2018 Study. The
30% study has expanded globally
beyond EMEA yet Turkey,
20% Spain, Poland and Russia are
holding their position as digital
champions.
10%
To achieve comparable data,
0% country averages are based on
UY AR BG CL HR SI HU RS IE CO RO GR LU CA SE NL UK CH AE IT PE PT FR DE KW SK SA AU CZ MX QA BE PL RU NO JP SG ES TR
the results of the top 5 biggest
Latecomers Adopters Smart Followers Champions
banks in given market in terms
1 DBM index measures maturity for channels and products offered by a bank. Data for 313 out of 318 banks which participated in 2020 edition
© 2021. Deloitte of assets. 9INSIGHTS FROM DIGITAL LEADERS
In almost all sub-steps Irish bank scores have a significant gap to digital
champions…yet aligned to global averages with the key gaps in card
management, ecosystem and account aggregation and investment services
DBM score by sub-category1
Opportunity to improve
Ahead of others Ireland Ireland Average versus Digital Global Average
Average digital champions champions
Availability of information
Opening process
Channels accessibility
Guidance for new users
Account and product mgmt.
Authorization
Card management
Customer support
Personal finance management (PFM)
Transfers and payments
Bancassurance
Beyond banking
Ecosystem and account aggregation
Investment services
Product x-sell (basic)
Product x-sell (complementary)
Account closing
1. Data for 313 out of 318 banks which participated in 2020 edition.
2. Absolute differences in weighted scores
© 2021. Deloitte END 10
INFORMATION ACCOUNT CUSTOMER DAY-TO-DAY EXPAND
RELATIONSHI
GATHERING OPENING ONBOARDING BANKING RELATIONSHIP
PAREAS OF FOCUS
What are the functionalities driving these journeys
These banks represent the best practice examples
Guidance for New Users Account & Product Mgt Card Management PFM
Virtual Onboarding A/C Opening Block Cards Incoming and outgoing transfers
How Banking Works Prefilled fields Freeze Cards Merchant logo
Guidelines Switching accounts Activate Cards Adding own files and notes
Personalising A/cs Modify Limits Smart search
Family A/Cs Period comparison
Earlier Payments e.g. Mortgage Scan Receipts
Transfer & Payments Beyond Banking Ecosystem & account Investment Services
Copy/Paste Beneficiaries Mobile top up aggregation Pension accounts
Hints on beneficiaries details Discounts and offers Partnerships – security Mutual Funds
Long strings grouped Loyalty points Partnerships – blockchain Brokerage A/Cs
Transfers to broker accounts Loyalty point movements Aggregation of accounts
Rejected transfers Parking and transport Hackathons
Contactless payments Credit scores Fintech
Samsung/Garmin Listing of accounts
QR codes
Confirmation of transfers
Repeat transfers
Transfers to beneficiary credit/debit
cards
11 | Copyright © 2021 Deloitte Development LLC. All rights reserved.What are Digital Champions Doing Differently to Others?
Panel discussion
Moderated by David Dalton
Partner and Financial Services Leader, Deloitte Ireland
© 2020 Deloitte Ireland LLP. All rights reserved. 13Panel discussion and Q&A
Panellists
Michael Wodzicki Jacek Iljin Andrzej Pyka Fergal O’Riagain
Partner, Consulting Managing Director Chief Retail Director of Daily Banking,
Deloitte Poland mBank Retail Poland Transformation Officer Investments & Insurance
Santander Bank Poland KBC Bank
Please enter your questions for the panel in the Q&A section
© 2020 Deloitte Ireland LLP. All rights reserved. 14Thank you for attending. Webinar recording and materials will be circulated in the coming days.
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