Issue 9 / February 2010 Trends: Key Themes for 2010
To increase service efficiency and
eliminate costs, executives need
to continue right-channelling their
customers toward self-service channels
Priorities for 2010
Standardising lending systems Integrating multiple channels Helping employees to be more Putting digital technologies at the Developing the mobile channel
productive heart of customer relationships
Given the continued scarcity of capital,
Many banks struggle to build an accurate Most UK banks have recognised the The arrival and rapid adoption of mobile
Forrester expect banking executives to
view of risk and they have siloed credit importance of customer experience to The skills that make employees suited to Internet banking is replacing the branch Internet devices, like Apple’s iPhone and
stay focused on the basics of managing
products. That is driving many banks customer loyalty. However the problems working behind a branch counter don’t as the hub of many customers’ relationship Google Android phones, has focused
risk, retaining customers and increasing
to overhaul their lending systems and underlying poor cross-channel customer always make them natural salespeople. with their banks. Customers’ expectations attention on mobile.
efficiency. Tactical initiatives that make use
processes. Many banks, lending systems experiences remain formidable. We expect other banks to follow Barclays’ continue to rise, with more customers
of the people and platforms banks already
have either been customised to the point As customers start using more channels, training programmes to help branch starting to expect secure, convenient
Mobile’s time has finally come:
have and that promise a more immediate
where it is too expensive to maintain them they become more likely to switch channels, employees improve their interactions with communication from everywhere at any
Fast broadband mobile networks have
return on investment will remain in vogue.
or they actually create risk because the particularly during complex processes like customers. As banks try to differentiate time and an integrated branch experience.
good coverage; mobile handsets are finally
separate systems mean the bank can’t buying mortgages. The problem is that themselves from their competitors Many banks have not changed their
delivering a competent Internet experience;
The first priority for most banks is to
easily determine exposure to either most banks built their channels one at and rebuild trust with their customers, strategies enough to reflect customers’
mobile operator mindsets have changed
understand and control the risks in their
individual customers or entire markets. a time. Customers who move between they need to teach and motivate their growing appetite for handling their
and become Internet-centric; and large
businesses. Despite the recession, banks
channels expose the inflexible, siloed employees to switch from pushing finances online. Banks that want to regain
brands are taking mobile seriously.
are still investing in technology as they
Preventing fraud
applications and processes that impede financial products to helping customers customers’ trust should use online banking
As a result, the UK’s banks need to assess
seek to address system weaknesses.
Fraud remains a problem for banks. great service. Service-oriented architecture solve their financial problems. to help customers manage their finances
their mobile strategies and decide when -
Managing liquidity
We expect banks to work harder to control (SOA) and business process management better. For example, Barclaycard’s
not if - they should launch new mobile
The third priority is to retain customers,
fraud - to invest in fraud identification (BPM) make it easier to tie systems together “mybarclaycard” service helps customers
products and services for both corporate
For many banks, determining liquidity
and gain new ones, by acting on
technologies that use a range of techniques and manage processes like product understand their spending, track a budget,
and retail customers.
(and the associated capital requirements)
customer intelligence to drive sales
(e.g. device identification, geo-location, applications, cross-selling, and customer and monitor how their spending changes
has been complicated by siloed banking
and using digital technologies to
Forrester believes that the banks who
browser security plug-ins, pattern matching, authentication consistently across channels. over time. Banks should also consider the
structures and by different systems within
deepen relationships with customers.
successfully master the basics of managing
chain-of-event analysis, behavioural We expect banks to capitalise on these kind of online advice tools that insurance risk, operating efficiently and retaining
each silo that clouded the enterprise-wide
profiling, and peer group matching) platforms to improve their sales and service Acting on customer intelligence companies like Prudential and Aviva and customers will the ones who are able
view needed to understand liquidity
to identify and stop both insider and processes across multiple channels. banks like Credit Suisse are using to help to focus on the long-term strategic
positions effectively. Furthermore, few could
external fraud.
Several UK financial service organisations
customers make better financial decisions challenges of regaining lost customer
even test how different market stresses
Right-channelling customer like Nationwide and Lloyds TSB have built
and generate sales leads. trust, differentiating from the competition,
would affect their liquidity requirements.
The second broad priority for most interactions an operational single view of the customer
and innovating to create new value.
We expect to see banks invest in
banking executives will be to continue
Compared with banks in other countries,
across multiple products and channels, but
technologies like Aleri’s Liquidity Risk
seeking efficiency gains through improved
UK banks’ efforts to persuade customers
work remains to be done to act intelligently
Manager which uses complex event
systems and processes, by standardising
to adopt self-service channels for routine
on that information. Leaders like Nationwide
processing (CEP) technology to help
processes across channels and
interactions have stalled. To increase
are using interaction management software
Many banks have not
bankers conduct stress tests to identify
encouraging customer self-service
service efficiency and eliminate costs,
to give employees the information they
changed their strategies
liquidity gaps.
adoption for routine interactions.
executives need to continue
need to treat customers as individuals,
Continuing automation right-channelling their customers toward
by creating real-time customer profiles
enough to reflect customers’
of routine tasks
based on historical and contextual data.
self-service channels by creating clear
growing appetite for handling
paths from human service to self-service
UK banks lag far behind their peers in
Parts of the banking industry,
and giving customers (and employees)
markets like Canada, the Netherlands
their finances online.
like mortgage applications, are still
incentives to change their behaviour.
and Spain. Banks need to use predictive
plagued by lots of manual work that analytics applied to real-time customer
slows processes down and, in many cases, data to provide intelligent sales and service
has done little to protect the bank from risk. prompts to front-line employees and
We expect to see banks continue investing deliver customised marketing and service
in technologies like automated decisioning messages across multiple channels,
that help to increase efficiency, manage including ATMs and online banking.
risk, ensure compliance, or improve
quality control.
6 / Perspectives on the future Perspectives on the future / 7
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