This document discusses engagement banking, which uses technology to achieve both customer intimacy and scale. It emphasizes using customer data and insights to provide personalized experiences across channels. The four pillars of engagement banking are outlined as next generation online banking, multi-channel experiences, digital customer acquisition, and digital communities. Key aspects include strong user experience design, data-driven products, and treating channels as agnostic to provide a unified customer experience.

1. Engagement Banking Strategy
Backbase Webinar Series
January 27, 2010

2. What is
Engagement Banking?
For further reading, download our white paper:
The Future of Banking is Engagement Banking

3. Today…
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4. Scale
and
Efficient
Operations
Customer Intimacy
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5. Scale
and
Efficient
Operations
Technology
Customer Intimacy
© 2011 SapientNitro

6. Scale
and
Efficient
Operations
Engagement Banking
Technologies
Customer Intimacy
© 2011 SapientNitro

7. Engagement Banking
is a new marketing, sales and service model that
deploys Technology to achieve both
Customer Intimacy and Scale
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8. 1. Your ability to collect customer data,
turn that data into insight and effectively
disseminate that insight
2. The appropriate channels that align with
a customer’s convenient behavioral
patterns
3. A strong user experience design
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9. Engagement Banking Market Framework
Consumer Behavior
Business Environment
Customer Experience
Banking
EB
Technology Marketing
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10. How are customers behaving
today?

11. Customers want Digital
 Most consumers now
touch their bank digitally,
and outside the branch
network
Internet Banking 36%
ATM 15%
Mobile 3%
Digital 54%
Source: American Banker Association, Preferred banking method survey, September 2010
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12. “Digital” will increasingly mean “mobile”
Source: American Banker, Javelin Research, October 2009
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13. Customers rarely set foot into a
branch.
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techny.com

14. Cash from the ATM…
the one thing they can’t do digitally
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15. But only for a few more months.
NFC
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16. So, what do consumers want?

17. Consumers want…
 Personalized information and content
 To connect with the brands they custom, and be valued for it
 To have access to their financial information and banking services,
24/7, across multiple channels
 To have a problem resolved quickly and for the first time
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18. The Four Pillars of Engagement Banking
1. Next Generation Online Banking Experience
2. Multi-channel Client Experience
3. Digital Customer Acquisition
4. Digital Community Development
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19. 60% of checking accounts are likely
to become unprofitable.
The Boston Consulting Group, 2010

20. Profits are generated in three ways
1. Revenue expansion
2. Increasing asset productivity
3. Cost reduction
Engagement Banking powers all three levers

21. What an
Engagement Bank
Looks Like

22. Traditional banks are organized around silos
Alternative
Retail / Branch Call Center
ATM Online Mobile
Customer Management
 Onboarding  Strategy
 Marketing  Analytics
Product
Services Instruments
Origination Pricing Deposits / Accounts Lending
Strategy Compliance, etc. Cards Wealth, etc.
Enterprise Services
 Corporate  Operations
 Finance  Fraud / AML
 Treasury  Technology
 Payments
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23. Engagement Banks are channel-independent
 Channels are agnostic, and supported by shared, customer-focused
business services
 Customer context is delivered throughout the organization
Channels
Retail / Branch Website Mobile ATM / Kiosk Call Center
Business Model Services
Customer Context
Customer Context
Branding /
Sales Onboarding Relationship Management / Servicing Transitioning
Marketing
Product
Services Instruments
Enterprise Services
© 2011 SapientNitro

24. Customers are already channel-
independent
Image: peopleseconomics.com

25. Discovery Initiation Engagement Re-evaluation
The customer’s journey defines the experience
Engagement Banking is about reorganizing traditional
banking activities to engage and empower customers
through a compelling sales, product or service experience

26. Discovery Initiation Engagement Re-evaluation
Triggers Investigation
Marketing and Brand. Pre-sales.
Moments of clarity and inspiration Initial research into the benefits
of a financial need. of a banking brand, products
and services… and what the
peer network says.
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27. Discovery Initiation Engagement Re-evaluation
Trial Onboarding
Sales activities The traditional onboarding
process.
The customer assesses how a Purchase
product or brand’s abilities Decision
meet their individual needs.

28. Discovery Initiation Engagement Re-evaluation
View Understand Manage
View your financial Make sense of what Gain clarity and
life. Assemble a I’m doing and a plan control, and make
personal balance for what to do next. transactions to
sheet to develop a implement change.
complete picture.
Evaluate
Continually evaluate how my financial solutions help with my continually
changing life.

29. Discovery Initiation Engagement Re-evaluation
Relationship Closure Repositioning
Activities to close or transfer a Identifying products that are
financial relationship, including better alternatives than what’s
account closure and feedback. currently implemented

30. Engagement Banking Business Framework
Customer Experience Framework
Discovery Initiation Engagement Re-evaluation
Channels
Retail / Branch Website Mobile ATM / Kiosk Call Center
Business Model Services
Customer Context
Branding /
Sales Onboarding Relationship Management / Servicing Transitioning
Marketing
Engagement
Product
Bank
Services Instruments Customer-centric
Services &
Functions
Enterprise Services Standard Bank
Products, Services &
Functions
© 2011 SapientNitro

31. How to Implement Engagement
Banking

32. The Four Pillars of Engagement Banking
1. Next Generation Online Banking Experience
2. Multi-channel Client Experience
3. Digital Customer Acquisition
4. Digital Community Development
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33. Next Generation Online Banking Experience
Applying professional-grade data
visualization techniques….
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34. … can provide financial context to consumers.
© 2011 SapientNitro
Image: Mint.com

35. Next Generation Online Banking Experience
PFM is really about bringing
business-class reporting and
analysis down the food chain to
consumers.
Image: Mint.com

36. Strong User Experience DesignExperience Design…
Strong User across every
channel
Most desired information readily Most recent first, for fast
 A design that focuses on the user experience means
available updates… a different
“What’s my account balance?” financial the check clear?”
approach to delivering “Did information.
 Personalization is a major trend in modern design
 The most relevant and convenient information, to that person, is
allowed to be surfaced and made easily accessible.
Visualization to provide
context at-a-glance.
“How am I doing?”
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37. … across every channel
Source: IDEO
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38. Multichannel Client Experience
SapientNitro Engagement Banking Digital Whitepaper
http://engagementbanking.sapient.com
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39. Digital Customer Acquisition
Real-time campaign management and adjustments, based on active tracking and
monitoring of consumer behaviours
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40. Data-driven Product Development

41. Data Intelligence in Customer Service and Support

42. Digital Community Development
Image Source: It’s a Wonderful Life, 1946

43. © 2011 SapientNitro Image Source: jasocal.org

44. Digital Community through Social Networking
Image Source: O’Reilly

45. Customer Intimacy at Scale
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46. Summary

47. Engagement Banking Market Framework
Consumer Behavior
Business Environment
Customer Experience
Banking
EB
Technology Marketing
© 2011 SapientNitro

48. Engagement Banking Business Framework
Customer Experience Framework
Discovery Initiation Engagement Re-evaluation
Channels
Retail / Branch Website Mobile ATM / Kiosk Call Center
Business Model Services
Customer Context
Branding /
Sales Onboarding Relationship Management / Servicing Transitioning
Marketing
Engagement
Product
Bank
Services Instruments Customer-centric
Services &
Functions
Enterprise Services Standard Bank
Products, Services &
Functions
© 2011 SapientNitro

49. The Four Pillars of Engagement Banking
1. Next Generation Online Banking Experience
2. Multi-channel Client Experience
3. Digital Customer Acquisition
4. Digital Community Development
© 2011 SapientNitro

50. About SapientNitro

51. FOUNDED IN
FOUNDED IN 1990,, PUBLICLY TRADED SINCE 1996 (NASDAQ:
PUBLICLY TRADED SINCE (NASDAQ:
SAPE)
SAPE)
HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN
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INDIA
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52. Thank You INSIGHTS
Expertise in research,
We are analytics, brand & user
experience, wealth
management, and
global markets
IDEAS
Ideas born of insights.
Our creative
department consists of
designers, writers, IAs,
strategists, account
managers and
technologists
S
REALIZATION
Michael Degnan People that can execute
Engagement Banking Lead on ideas from a
SapientNitro Financial Services Center of Excellence
customer experience,
mdegnan@sapient.com | @mdegnan
operational and
technical perspective
supported by world
http://engagementbanking.sapient.com class program
#engagementbanking management and
collaborative approach
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