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The era of omnichannel banking is here

Omnichannel banking is different from the current “multichannel” approach in which banks encourage customers to use the least expensive channel, while delivering minimal crosschannel consistency and an inconsistent user experience. Omnichannel banking provides a consistent experience across channels to provide customers with seamless access to financial products and services—where and when they are needed. In the world of omnichannel banking, customers are in control of the channels they wish to use.

Omnichannel banking is not a hypothetical concept; instead, it is essential to addressing customers’ desire to control the time, place, channel, and information required to perform their banking activities. In developed countries, a rich mix of physical (branch) and virtual (web, mobile, and social) banking channels has prepared customers for the advent of a seamless omnichannel experience.

Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, june 2012

Mastering digital channels

Digital tools are a wonderful opportunity for banks to address customers’ needs throughout the lifecycle.

Mastering digital channels: from a single moment of truth approach to a global client lifecycle approach.

Source: Bain & Company | Customer Loyalty in Retail Banking, 2012

Elements of the omnichannel for banks

 

Source: Bain & Company

 

4 Pillars for transforming to Omnichannel banking

The new branch

The Old Branch Is Dead; Long Live the Omnichannel Branch

The death of the branch has been greatly exaggerated. The most avid adopters of virtual channels—tech-savvy consumers—are also among the most frequent branch visitor. The branch continues to be the preferred channel for personal attention and advice, including new services. Customers are also open to having advice delivered to them virtually in the branch as long as quality and personalization do not suffer. Video will be at the center of branch transformation.

Digital technologies will accelerate branch transformation:

Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, june 2012

Mobile

The Promise of Embedded Banking in Consumers’ Lives

As Internet access continues to improve over mobile devices, mobile is rapidly emerging as a banking channel. Preferred features for mobile banking include real-time expense tracking, mobile payments, and location-based commerce.

Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, june 2012

What Consumers want from financial institutions

The user would feel more confident in buying goods and services through a mobile phone if he coul do so through an app offered by his bank. Among smartphones owners

Source: Monitise/Future Foundation/nVision ? Base: 500 online respondents per country who are aged 16+ and own a smartphone, 2013

Mobile Capabilities Considered Most Valuable (North America)

Respondents clearly have a preference for mobile banking, (however) it’s important to note that they do not want it to replace other channels. ... and are very supportive of using multiple services in an omnichannel environment.

Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, june 2012

Social

The Potential Is Here — When Will Banks Be Ready?

Social banking is still lagging, as an overwhelming number of customers are reluctant to mix banking with social activities. A key reason for their reluctance is concern about privacy and lack of control over personal information. When it comes to going social, one segment stands out—younger, tech-savvy customers, especially those in emerging countries who tend to be dissatisfied with their bank.

Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, june 2012

Social is not another channel, it’s a whole new way of doing business and it’s key to customer experience.

Customer experiences are about touchpoints and touchpoints are by definition social. Guess what is a key focus in 2013? Indeed, social. Not as ‘just another channel’ but as a whole new way of doing business.

Gartner predicts that by 2014, refusing to communicate with customers via social channels will be as harmful to the relationship as ignoring their emails or phone calls is today.

Our discussions with service providers and end users indicate that CRM services are shifting from a focus on point solution deployment centered on application suites, to a ‘customer experience’ that brings together customer information, analytics, workflows, mobility and social CRM disciplines into a richer, multichannel access to capture the entire customer journey.

Source: Gartner | Analyst, Ed Thompson

Video

Seeing is Believing

In banking, video is a key enabler of building trust in situations where humans are not physically available.

Video is a key feature and experience enhancer for unmanned banking kiosks, afterhours multipurpose ATMs, and next-generation virtual banking delivered to homes and offices.

Video adoption in consumers’ personal lives or at work isn’t limited to younger, tech-savvy consumers. Cisco IBSG’s study indicates that Gen X and early-majority technology adopters are now solid believers in the role of video

Source: Cisco IBSG | Winning Strategies for Omnichannel Banking, june 2012

26 percent said that video conferencing with a remote expert would enhance their experience when the expertise was not available in the branch. This makes video a key feature and experience enhancer for unmanned banking kiosks, after-hours multipurpose ATMs, and next-generation virtual banking delivered to homes and Offices. Interestingly, those most interested in video as a banking channel tend to be GenX customers who are also in the early-majority group when it comes to technology adoption. This shows that video is ready for mass adoption above and beyond younger, tech-savvy consumers.