Keynote: why are Innovations critical for Banks & Insurances?
A perspective on the Financial Services industry: the amount of changes will only accelerate.
- Exponential technologies are driving change; convergence of several disciplines from software to devices to biotech
- Our expectations as consumers are set by our online experience from services such as Facebook, Google or Amazon
- Disruption pattern: startups put themselves in-between the customer and the company
(i.e. check24)
- Industry changes leading to further FinTech & InsureTech investments
- Margin pressure: banks & insurrance by the lowest interest rates we have seen in 2.000 years
- User Experience is driving value in a new way – and most startups understand customer-centricity
- Banks & Insurance companies are under pressure because their offering is fundamentally undifferentiated
- Regulators are opening up: i.e. PSD II forces the banks to open up their data; full disclosure of insurance commissions will arrive soon
- Customers don’t want to be ‘told’ anymore: they don’t come to branches anymore - buy how can advice as the key point of sales be digitized?
Banks need to build up digital capabilities based on 5 pillars plus 1 enabling capability:
(1) DATA-DRIVEN DIGITAL INSIGHTS
- Data-driven segmentation & Value Proposition Design
- 360° single customer view
- Customer Experience excellence
- Comprehensive data ecosystem, including 3rd party APIs
(2) CUSTOMER EXPERIENCE EXCELLENCE
- Customer-centric experience design & processes
- Omni-channel experience delivery
- Journey consistent front-to-back, end2end
- Clear brand positioning & brand amplified by a purpose
(3) DIGITAL MARKETING
- Data-driven, real-time segmentation & cohort analysis
- Data-driven customer- life-cycle management
- Targeted digital (performance) marketing
(4) DIGITALLY ENABLED OPERATIONS
- Operations are designed to support customer journeys
- Streamlined and automated fulfillment processes
- Digitized sales and service interactions
(5) SMART TECHNOLOGY SETUP
- Scalable application architecture
- Flexible IT architecture (i.e. SOA) with clear messaging
- Flexible IT infrastructure
(6) DIGITAL ENABLERS
- Digital Talent Management
- Value-driven Organisation & governance
- Test-and-learn culture
We feel honoured McKinsey copied this model in the following article:
Cutting through the noise around financial technology, Feb 2016: http://bit.ly/1Rtz0AF