Presentación de Alain Enault durante el encuentro de Reputación Bancaria organizado por Cecabank

1. WORLD RETAIL
BANKING REPORT

2. 1
The World Retail Banking Report (WRBR) has provided insights into the
challenges of the Retail Banking industry for over ten years
Customer Experience
Index (CEI)
• 17,000 customers
• 32 countries across
six regions
Feature
on Social Media
• Current state of social
media banking use
• The market
opportunity vis-à-vis
social media banking
• Recommended
banking approaches
to social media
Previous speakers focused on stakeholders’ perception. This presentation will share the satisfaction and
expectations of the customers with banking services. Satisfaction is also influenced by the expectations,
which can be managed by the banks.

3. 2
Capgemini’s Customer Experience Index provides a granular and multi
dimensional understanding of what drives positive customer experience
Dimensions of Capgemini’s Banking
Customer Experience Index (CEI)
Channels / Networks
CEI
! Information
Gathering
! Transacting
! Problem
Resolution
! Account Status
& History
! Branch
! Internet
! Mobile
! Current, Depository
Accounts & Payments
! Credit Cards
! Loans
! Mortgages
! Phone
! ATM
CEI is different from a usual
customer satisfaction study
because it…
" Analyses 80 different retail banking
touch points spanning the full
range of products, lifecycles and
channels
" Surveyed 17,000 customers from 32
countries across 6 regions were
surveyed
" Describes how customers feel about
those interactions, taking into account
their perceptions and expectations
" Identifies the factor most important to
customer and measures satisfaction
only on those factors

4. 3
Since its launch in 2011, the banking CEI decreased for the first time in 2014
(by 0.7% points)
This decline in customer experience index may indicate an inflection point in the
experience customers have vis-à-vis their banking services.
Note: The numbers for countries denote overall CEI score on a scale of 100
Source: Capgemini Financial Services Analysis, 2014; 2013, 2014 Retail Banking Voice of the Customer Survey, Capgemini Global Financial Services
Canada
80.9
80.7
1
Argentina
75.1
75.1
9
S. Africa
76.0
77.1
5
U.K.
76.0
76.3
6
Netherlands
75.7
71.1
7
Germany
74.5
75.8
10
Australia
76.5
77.8
4
CEI 2014
CEI 2013
U.S.
79.0
79.5
2
Portugal
75.2
75.7
8
Czech
Republic
76.6
74.0
3
Global average for positive
customer experiences
72.9

5. 4
North America leads the pack while the bottom placed countries are mostly
from the Asia-Pacific region
Canada US Czech Republic Australia South Africa UK Argentina
2.52%# 8.12%
# 3.04%# 0.87%# 3.08%# 0.88%
#
60.0% 54.6% 50.7% 48.5% 47.7% 47.0% 45.8%
60.8% 57.0% 42.5% 51.5% 48.6% 50.1% 44.9%
0.80%#
Top 7 Countries in Customer Experience
Norway UAE Spain Turkey Singapore Japan Hong Kong
11.01%# 10.69%# 7.22%# 1.44%
# 1.61%
#
31.0% 29.0% 28.5% 27.7% 27.1% 23.4% 16.6%
43.3% 40.0% 34.4% 38.4% 34.4% 21.9% 15.0%
12.34%#
Bottom 7 Countries in Customer Experience
24 25 26 27 28 29 30
5.89%#
25% Countries Showed a Decrease in Positive Customer Experience of +10%
2014
2013
2014
2013

6. 5
Positive experience has a strong impact on customer retention - a critical
element of bank’s profitability, a similar impact has been observed on referrals
Likelihood of Customers with Positive, Neutral, and Negative Experiences to
Stay with Their Primary Bank in the Next Six Months (%), 2014
Only moving customers from a negative to a neutral experience, on average, could,
in some regions, doubles the banks’ chances of retaining their customers

7. 6
Gen Y customers typically have higher expectation which is reflected in the
lower positive experience they have compared to other age groups
Positive Customer Experience Evolution for Gen Y Customers vs. Others by Region, 2014
Considering the share of Gen Y customers as a part of world population, banks
need to focus on this segment to improve their overall banking experience.
(21.7%) (7.2%) (9.8%) (8.8%) (7.5%) (7.5%)Percentage Point
Difference

8. 7
With the proliferation of smart phones and mobile applications, the importance
and experience of mobile channel for Gen Y has increased
With the increasing prominence of the mobile channel, there has been a decrease in the
usage and importance ascribed to the traditional channels leading to changing roles of
channels.
Importancea vs Positive Experienceb with Channel for Gen Y Customers and Others, 2011–2014

9. 8
Due to the changing roles of various channels, the priority of the banks should
be to integrate branch and digital channels in a holistic manner
Improved
Customer
Experience
Integrating Channels
! Banks need to focus on integrating both the
digital and branch channels
! Shift needs to be made from siloed and multi-
channel environment to an Omni channel
environment
Improving Core Banking
! In order to improve the back-end
infrastructure, banks need to focus on
increasing the capabilities of their core
banking systems
Building Relationships
! Banks need to focus on developing
relationship as the interactions shift
towards digital formats
! Value-add needs to be clearly
communicated to the customers and proper
expectation setting should be done to
improve the overall experience
Leveraging Data
! With the increase availability of data, banks
need to leverage transactional, digital, and
social data to deliver customized customer
experience and develop customized products
offering competitive pricing
Holistic Approach to Improve Overall Customer Experience

10. 9
! In 2014, the banking CEI decreased for 1st year (0.7 percentage points) since
we launched the CEI in 2011, and may represent an inflection point in changing
customer experience.
! This decline in experience is notable as our research found that delivering a
positive customer experience has a significant impact on profitability as
customers with a positive experience are 3x more likely to stay/refer/buy another
product vs. those with a negative experience.
! However, it is important to note that Digital innovation has not always resulted
in increasing positive customer experience.
! Gen Y is having a huge influence on driving expectations on the banking
industry and lead way to future.
! With the changing roles of channels and increasing commoditization there is a
need for banks to focus on operational efficiency and balancing branch and
digital channels.
Customer Experience Key Findings Summary

11. 10
Today’s Session on Social Media
#WRBR14
@aenault
@Efma_News

12. 11
Technology Adoption Rates Are Accelerating
31
28
15
10
3,5
Radio TV Mobile Broadband
Internet
Social Media
Number of Years to Reach 50% User Adoption

13. 12
Emerging Markets and Gen Y Are the Highest Users of Social Media, but Other
Demographics Are Also Relatively Active Users
% of Customers Spending More than One Hour Per Day on Social Media Sites vs.
% of Customers with Social Media Accounts (%), 2014

14. 13
10% of Banking Customers Already Are Interacting with Their Banks via Social
Media at Least Once Per Week
Customers Interacting with Different Banking Channels at Least Once per Week (%),
2013-2014

15. 14
Our Report Focused Specifically on Actual Customer-Facing Functionalities
Banks Are Providing Today or Plan to Provide in the Future

16. 15
Most Bank Efforts To-Date Have Been on Building a Presence, but ~50% of
Banks Have Rolled Out Only Information Gathering and Servicing functionalities
Banks’ Current Status in Implementing Social Media Banking Functionalities, 2014

17. 16
Barriers to implementing social media banking:
! Concerns over specific social media platforms future viability
! Privacy and security concerns
! Poor back-end infrastructure
! Low adoption of social media in some segments
! Lack of clarity around regulations and evolving social media landscape
! Difficulties with technology architectures to provide a seamless experience
! Unclear ROI
In Our Interviews, Executives Noted a Number of Reasons for Slow Adoption

18. 17
We Identified a Significant Gap in Where Customers’ Place Importance vs.
What Banks Plan on Offering in the Future
Importance Ascribed by Customers and Banks to Social Media Banking Functionalities, 2013

19. 18
However, the Pace of Social Banking Capability Roll Outs Is Increasing
Bank of America
Launches
Customer servicing
on Twitter
ASB Bank
Launches
Virtual Banking
on Facebook
Deutsche Bank
Launches Customer
Servicing on Twitter
and Facebook
RBC
Launches Money
Transfer on
Facebook
BBVA
Launches A/C
Opening and Money
Transfer on Facebook
ICICI
Launches Facebook
Payments via
Pockets App
Caixa Bank
Launches A/C
Information and
Payments on Facebook
Commonwealth
Bank of Australia
Launches Facebook
Payments via Kaching App
ING Direct
Launches
Crowdfunding
Platform on Facebook
Denizbank
Launches
Facebook
Payments App
Feb, ‘09
Sep, ‘10
2009 2010 2011 2012
Jan, ‘12
Nov, ‘12
2013
Mar, ‘13
Mar, ‘13 Dec, ‘13
Sep, ‘13
2014
Mar, ‘14
May, ‘14
Examples of Social Banking Functionality Roll-Outs, 2009 - 2014

20. 19
! Customers are demanding the same set of functionalities in social media as other
channels, largely driven but not exclusively, by younger demographics.
! A gap exists between customer needs and the functionalities being provided by
banks, with customers attributing more importance on transacting and account info
! Concerns around privacy/security, lack of clearly defined regulations, and poor
infrastructure are all inhibiting the large scale roll out of social media banking.
! Banks need to be agile in their social media approach and should avoid getting tied to
a single platform as well as have mechanisms to ensure data privacy and security.
! A robust governance model and clearly defined social media strategy which clearly
lays out objectives and approach is critical
! The key opportunity of social media banking lies in utilizing it for providing services
beyond what is currently able to be offered by branches, ATMs, and online.
! It’s important to understand the true future/value of Social Media Banking is the
concept of “Social” banking and increased convenience, not a specific tool or app
Key Take-Aways

21. WORLD RETAIL
BANKING REPORT