Financial Services - Cases

Woerden, October 2008

Innovations in Retail Financial Services

Remarkable initiatives from around the globe

© IG&H Consulting & Interim

Purpose of this document
In Financial Services these days a lot of companies struggle to win in
severe price competition
However a financial institution should develop its business on long lasting
and customer value driven business models: price difference isn’t enough
An element could be innovation, a financial institution is able to defeat its
competitors only if it keeps on surprising its customers with bright
innovations
In this presentation we would like to bring you eighteen remarkable
innovations in Financial Services from all around the globe, hopefully they
will inspire you. This presentation is part of broader research performed by
IG&H Consulting & Interim
We are more than glad to join you in a meeting to discuss the possibilities
for your business

© IG&H Consulting & Interim, Woerden 2008 Innovations / 2

Online consumers searching for financial services have
various characteristics, innovative online tools can serve all

Focus on Price
1 Self-directed

2 Validator

3 Avoider

4 Delegator
Source: Forrester

Focus on Support

Focus on Price or Focus on Support? Innovative online services could serve all, for example:

Online innovation serves the ‘Delegator’ in making
Online consumer profiles vary between
specialist advice accessible online, like Mint.com at
independence and convenience:
page 9
Independent searchers focus on price and do
Online innovation serves the ‘Self-directed’ by
not want any help or advice in their search for
supporting in their independent choice, such as
financial products
FindABetterBank.com at page 5
Convenience searchers focus on support and
Online Innovation serves the ‘Avoider’ in taking
depend on advice in their search for financial
over their search efforts, like MoneyAisle at page 6
products and services
.

Contents

Lending
Advisory Savings

Page 10-11
Page 4-8 Page 12-15

Trading Insurance
Payments

Page 20-22 Page 24-26
Page 17-18


Findabetterbank.com: comparing features and fees of
banks just around the corner

Score

Search is based on
customer preferences
Transparency in
earnings of
FindABetterBank.com
No consumer ratings
experiences, just
product
characteristics

Explanation

FindABetterBank.com compares interest, banking fees and banking conditions of several banking facilities
FindABetterBank.com uses Google Maps to pinpoint the user to the nearest branch of the best rated bank
Unfortunately FindABetterBank.com does not have real mandates, so the consumer has to go the bank to open an account


MoneyAisle: auctions your certificate of deposit or High
Yield Savings among banks

Score

A real turnaround in
the value chain
User does not need to
search
FDIC guaranteed
Doesn’t increase
bargaining power

Explanation

MoneyAisle provides an easy way to high rates on excessive liquidities
MoneyAisle auctions the amount of money among a number of banks
These auctions should provide the user the highest rate for Certificate of Deposit or High-Yield Savings


Boulevard R: a complete financial advice for your
future perspectives

Score

Fixed fee and no extra
commissions
Makes life planning
accessible for great
audience
High complexity still
creates an entrance
barrier
Relatively expensive
for an online service

Explanation

Boulevard R provides a customized financial advice with advanced web based software which is designed by financial
planners
Clients can start to put in their financial situation with assets, debts and income. For a fixed fee the client receives
customized and up-to-date financial plan
Instead of expensive bankers or other advisors paid with high fees the customer receives a complete financial advice for
USD 50

Wesabe: Peer to Peer advisory for people with debt
issue's

Score

The system accesses
several banking
systems in one time
Wesabe does not
compare products but
spending behavior
Real peer-2-peer
comparisons
Security level is
questionable

Explanation

Wesabe provides an overview of bank accounts of different banks. Wesabe structures the spending and set up savings
targets
Wesabe’s mission statement is to support consumers on their financial planning and help realize financial targets
Wesabe is alo a community with peer to peer advisory on debt relief and investment planning
Wesabe does not want to compete with traditional banks but wants to be compulsory
Wesabe has already 100.000 online participants, experts predict a great future

Mint: brings all your finance portfolio in just one
overview

Score

State of the art
technology
Strong partnerships
with financial
institutions
Provides clear
overview
Reel peer-2-peer
tools

Explanation

Mint provides customers a web based platform for financial planning
Mint categorizes and analyses the consumers’ spending, and actually advices on how to improve financial efficiency
Over 5.000 financial institutions are connected to Mint, they provide current account data, savings data, investment results
etc.
Over 180.000 customers are already using Mint.com


Contents

Lending
Advisory Savings

Page 10-11
Page 4-8 Page 12-15

Trading Insurance
Payments

Page 20-22 Page 24-26
Page 17-18


Keep the Change: makes it possible to save money for
people that have difficulties putting money aside

Score

Easy way of saving,
automatically creates
savings
Low amounts, many
transactions and high
costs

Explanation

Bank of America developed Keep the Change accounts for people that have difficulties to save money on a regular basis
Every time a consumer buys something the amount will be rounded up and the difference will be transferred in to a savings
account
Since the start in 2005 already one million accounts are opened


SmartyPig: special purpose or target saving together
with family or friends

Score

It is social and goal
oriented
It is funny!
Making deposits cost
money
Minimum real value
added

Explanation

SmartyPig is saving like 2008: it is fun, easy, social and for a special goal
SmartyPig offers an online savings account by West Bank for a special purpose like a journey or a boat
Special feature is that family and friends also can make a deposit on this account
The concept is already rewarded with several Banking Awards


Contents

Lending
Advisory Savings

Page 10-11
Page 4-8 Page 12-15

Trading Insurance
Payments

Page 20-22 Page 24-26
Page 17-18


GreenNote: helps students get low-cost private student
loans from social networks

Score

Theoretically this
could support
students
Attracts wrong
people outside peer
group
Peer to peer lending
is perceived as risky

Explanation

GreenNote helps students get low-cost private student loans from social networks while lenders get a fair return on the loans
they give to students
It starts with contacting your network of family and friends, and ends with you reaching your goals


SameDayCash: lending platform for money in your
current account on the same day

Score

Fast and Easy
Cost model is very
transparent
It could attract people
that already have
money problems
(social
responsibility?!?)

Explanation

SameDayCash is providing small loans on the same day up to a maximum of 200 pounds
SameDayCash is collecting the money just a couple of days later from the user’s debit account, with a maximum period of 30
days
Concequences of not paying back could give the user a bad credit score immediately


LendingClub: Peer to Peer lending inside established
social networks

Score

Uses established
social networks that
reduces risk
perception
Again peer 2 peer, it
has not been proven
as successful yet

Explanation

LendingClub Peer to Peer lending inside established social networks
LendingClub uses established social networks that should guarantee more save lending and better rates
The loan request includes information that helps ensure that loans get funded at the best available rate
There is a two-week loan listing period during which the loan can be funded and issued


Contents

Lending
Advisory Savings

Page 10-11
Page 4-8 Page 12-15

Trading Insurance
Payments

Page 20-22 Page 24-26
Page 17-18


Tradeking: sharing trading strategies and showing off
your brilliance

Score

Stimulates
consumers’ admire to
be the best
± It is just another
trading platform
Question is if people
want to switch just for
being in competition

Explanation

Tradeking provides a stock trading platform
The platform facilitates the user to share their strategies and let them learn from other traders
Tradeking keeps up the score and let the user show off if they trade well
Tradeking also offers an extensive learning center to educate to inexperienced trader


Zecco: free stock trading and following star-investors

Score

Nice add-on for
following star-
investors
± Again just another
trading platform
You only get ten free
trades

Explanation

Zecco is in the United States a famous trading platform
Zecco provides Free stock trading and learning from star-investors
The free trades are capped at just 10 trades with a minimum of $2.500 net equity otherwise $4.50


Contents

Lending
Advisory Savings

Page 10-11
Page 4-8 Page 12-15

Trading Insurance
Payments

Page 20-22 Page 24-26
Page 17-18


Barclaycard OnePulse: a public transportation, credit
card and chip in one card

Score

Integration of three
different card services
For everyday use
Public transport
services are still
limited by
geographical
constraints

Explanation

Barclaycard OnePulse has three built-in functions, helping you to save time, money and hassle
Barclaycard is the only card in the UK to offer public transportation, credit card and chip card in just one card
In-built Oyster card for the fastest, smartest and easiest way to travel around London
Go cashless with OneTouch, a new and quick way to pay for purchases of £10 and under


PräsentCard: client gift card for expanding your client
network

Score

New level in bank-
SME relationship, it
introduces the bank
as a marketing
partner
No fundamental value
for a bank other than
a platform for tracking
client payment data

Explanation

Deutsche Bank offers its SME clients a tool that is normally only available for huge retail shops
“Present Card” is a gift card that facilitates SME business giving their clients a gift card
The “Present Card” is all about increasing client commitment and expending client base


Rabo SMS Pay: direct easy pay for small amounts

Score
A real target group
initiative for cross-
selling
Not really user
friendly
Will mobile internet
take over, what’s the
unserved customer
need?

Explanation

It facilitates to pay small amounts directly without having cash
In a community that is excluding small cash the SMS-paying service is a good fit in the modern banking features
It does appeal young people and Rabobank is likely to cross sell other banking services to non-clients


Contents

Lending
Advisory Savings

Page 10-11
Page 4-8 Page 12-15

Trading Insurance
Payments

Page 20-22 Page 24-26
Page 17-18


Sheilas’ Wheels: creating a social network that has a
low risk insurance profile

Score

A real target group
initiative
Clever selection of
low-risk clients
Minimum of extra
services

Explanation

Sheilas’Wheels is a car insurance only available for women
The insurance policy provides distinctive features like handbag coverage and female friendly repair
With this Esure creates a portfolio with a attractive risk profile


Ibuyeco: 100% carbon neutral car insurance

Score

It services a distinct
and life customer
need
While you drive trees
will be planted…
But saving the
environment while
driving a car? It is a
bit contradictory!

Explanation

With this BISL is helping the user to balance out the impact their driving has on the environment
Not only will it get the user a good rate, it will make it easy for the user to offset 100% of the vehicle’s annual CO2 emissions


Teensurrance: creating a social network that holds a
high risk profile

Score

A real multi-media
service
Razor-sharp target
group tool
Typically US service
Probably sales will
rise if the service is
marketed separately

Explanation

Teensurance, powered by SafecoTeensurance, is a completely new kind of package that gives parents a way to determine
how their teen is driving
Teensurance provides a range of ways to keep teen drivers safer, including roadside assistance, GPS real-time car tracking
and parent-teen discussion resources
Introduced to encourage responsible teen driving – and give parents some peace of mind


IG&H Consulting & Interim market driven, operation wise
IG&H Consulting & Interim is an independent company in consultancy and
interim management with 150 professionals. Our specialism: the financial
services sector
IG&H has successfully worked on cases like:
Lean Change – IG&H is the specialist in Lean for the financial services
industry
Operating Strategy – realizing challenging turnarounds in operations starts
with the right course
Strategic Execution – really implementing new strategies
Business Development – development of value adding, innovative
solutions
Sales effectiveness – realizing of breakthroughs in sales effectiveness, for
example banc assurance or intermediary distribution


IG&H Consulting & Interim market driven, operation wise

IG&H Consulting & Interim

Vijzelmolenlaan 10 – 18
3447 GX Woerden

P.O. Box 572
3440 AN Woerden
The Netherlands

T: +31 (0)348 496 300 F: +31 (0)348 496 397
I: www.igh.nl


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