Banking models in 2016

1. Banking 2016
Accelerating growth
and optimizing costs in
distribution and marketing

2. 2
It is time for retail banks to change. Current branch-based distribution Accordingly, each bank needs to define
Faced with a daunting array of models are no longer sustainable in its own target business model in light
market, regulatory, customer, cost and most developed countries and are unable of its history, market, positioning,
operational challenges, many banks are to meet the rapidly evolving customer ambitions, etc. We think there are three
struggling to post even moderate growth. needs and requests for easy access and business models banks should consider
simplicity across their banking services. when defining their own model:
Projected revenue growth rates, according
to an Accenture analysis of 2011-2014 Accenture believes there is a clear path 1. ne that builds on enhanced
O
business plans for a group of 30 global forward for banks that begins with the multichannel experiences to
banks, estimate 6.5 percent average shoring up of core business operations to engage customers and meet their
growth (4 percent Europe/North America improve efficiency, customer relevance and financial needs effectively (the
average) following -0.5 percent retail profitability—in other words, “doing the “Intelligent Multichannel” Bank),
revenue growth for 2008-2011. Bankers basics right.” While some banks may excel with the strategic application of
are beginning to realize that it will be a simply by improving on the basics, including analytics at the core of this model
challenge to meet these growth targets and “smart-sizing” their distribution networks, 2. ne that leverages social media
O
know they have to win three critical battles: others need new business and operating interactions to increase customer
restoring customer trust and engagement, models to compete and grow going forward. intimacy (the “Socially Engaging” Bank)
defending their payments business Keeping one eye on the present and one eye
against progressive disintermediation on the future is the key paradigm we have 3. ne that places the bank at the center
O
from new entrants (e.g. Google Wallet, defined as “Banking 2016—Next Generation of an ecosystem selling financial and
PayPal) and avoiding commoditization. Banking”, drawing inspiration from some non-financial services, leveraging
notably innovative retailing models. in particular the power of mobile
technology (the “Financial/Non-
Financial Digital Ecosystem” Bank)
The money on the table can be significant.
A bank working aggressively to implement
all three of these business models can
double its annual revenue growth rate
(from 4 percent to 8-plus percent in
developed markets) while reducing its
cost to serve by 20 percent or more.
Regardless of the models being pursued,
bank governance overall must evolve,
giving appropriate weight to customer
metrics in the key areas of reputation,
commercial performance, service
performance, sales performance and the
capabilities required to support them.
Accenture Distribution and Marketing Services

3. 3
“Next Generation Banking” models
Today “Next Generation Banking” models
The “Financial/
The “do the The “Intelligent The “Socially Non-Financial Digital
basics right” Bank Multichannel” Bank Engaging” Bank Ecosystem” Bank
−− Optimized branch −− Integrated −− Customer engagement −− Bank as trust center
network and multichannel where they spend with an extended
contact center architecture, their time (e.g. on proposition (financial
powered by analytics social media) based and non-financial)
−− Enhanced digital
(real-time event on personal interests
channels −− “The bank where you
management, etc.)
−− Leverage influencers are” leveraging the
−− Need-based offerings
−− Advanced digital power of mobile
and consistent −− Co-creation based
advisory
sales behaviors on increased −− M-payment services
−− Need-based offerings customer intimacy
−− Basic multichannel
optimized by channels
integration
“My bank effectively “My bank engages with “My bank gives answers to my
engages with me on my me where I spend time.” needs, providing easy access.”
real financial needs.”
Source: Accenture
Customer-oriented metrics evolution
Profitability-based metrics Holistic stakeholder perspective
Management and
investors view
(Shareholders Perspective) Commercial Performance
• ARPU (revenue per customer)
−− Revenues Service Performance • Net customer flow
• Customer engagement Bank Reputation • Customer lifetime value
−− Profitability
• Customer satisfaction • Reputation index • Cross selling
−− Cost-to-income • Net promoter score • Brand recognition • Recurring revenues %
−− ROE
−− Market share
−− EVA
−− Share price trend
−− Market capitalization
−− EPS
Sales Effectiveness
• Sale productivity
• Sales per square mile Capabilities
• Campaign effectiveness • Customer centricity index
• Product penetration
• Customer contacts
• Social channel engagement
Source: Accenture
Accenture Distribution and Marketing Services

4. 4
“Banking 2016—Next
“Banking 2016—Next The key components of “doing Optimizing the
the basics right” are:
Generation Banking” branch network
1. ranch network optimization (number
B
foundation: doing and size of branches), reviewing network
The most critical aspect of “doing the
basics right” is improving branch network
the basics right architecture (i.e. hub and spoke model)
performance, ensuring sustainable positions
2. asic multichannel integration,
B
and creating adequate foundations for the
What is “Banking 2016—Next Generation alignment of channels and
“Intelligent Multichannel Bank” model.
Banking”? It starts with getting integrated governance processes
Branch network effectiveness can be
the basics right to address banks’ for real-time banking
maximized through strategic localization
most immediate challenges: eroding 3. roactive and reactive management
P
(closing low-performance branches
customer trust and satisfaction. interaction based on customer needs
operating in markets with limited potential
4. perational customer
O
first), identifying the right number,
segmentation driven by a needs-
type, and format of branches according
based offering structure
to target customers and optimizing
5. ales force effectiveness powered by
S
branch processes to free up commercial
consistent sales behaviors and tools
time and focus on sales generation.
6. imple and clear communication
S
with customers Networks composed solely of full-service
7. Performance management (new branches with duplicate services and skills
customer-oriented metrics) and are no longer sustainable. The branch
tailored compensation schemes network model must be designed with
careful consideration to differentiated
formats and integrated in a multichannel
view that is able to maintain territorial
coverage, react to local customer needs
and optimize skills and capabilities. This
extends beyond full-service branches and
hubs to include light branches (with an
average of 4-5 employees), kiosks and
cash-less branches. By migrating low-
value activities to digital channels and
retail-based formats, banks can satisfy
new customer segments and further
overall branch network transformation.
An efficient “hub and spoke” branch
model can help enable a bank to decrease
the branches in its overall network by
15-20 percent and reduce average branch
staff by 25 percent with the proper mix
of flagship, full-service, light and kiosk
branches. Furthermore, by specializing in
specific services or activities, each branch
format is able to deliver a more tailored
customer experience and, ultimately, help
increase customer satisfaction and loyalty.
Accenture Distribution and Marketing Services

5. 5
Opportunities in the • ocus on branch front-line staff
F • estructure product catalogues by
R
by designing specific profiles and customer needs and with service levels
operational basics dedicated training plans to create based on customer segmentation.
In addition to optimizing the an empowered, unified workforce • ntegrate channels to facilitate
I
branch network, banks have other (we call this “workforce of one”); transparency and data sharing so each
opportunities to become more proficient support branch employees with both customer’s buying habits and needs
in operational basics and increase formal and informal learning tools are known and can be addressed
sales. For instance, they can: that can be enabled and accelerated across an integrated multichannel
• edefine roles and activities at
R by cloud-based collaboration buying experience (eliminating a
branches through process optimization, capabilities and social media. more silo-structured approach).
standardization and initiatives • nhance digital capabilities to provide
E If customers feel they are getting
enabling focus on sales, such as a more personalized, streamlined and proper service from their banks and
digitalization, back-office automation robust online banking experience, the product mix and price points
and integrated CRM systems. Gathering complemented by educational tools meet their expectations, the expected
and pre-filling customer information and simulators to better address result will be greater customer
should also be considered. self-directed customers’ needs. satisfaction, retention and loyalty.
• mprove branch sales force performance
I • evelop basic mobile banking
D
by implementing next-generation capabilities to provide services
front-end workstations that can that take full advantage of the
provide branch employees with the “on the go, anywhere, anytime”
latest tools, information and guidance nature of mobile devices.
to engage customers effectively.
Banks should consider differentiated branch formats
Cash-less, kiosks— Light branches— Full-service, hubs— Flagships—
maintain for service maintain for sales maintain for advanced banking innovate, attract
COV. 50% COV. 30% COV. 15% COV. 5%
sales services sales services sales services sales services
−− 100% transactions −− 50% transactions −− 40% transactions −− 30% transactions
and 50% sales and 60% sales and 70% sales
−− Open with staff 1-2
days per week −− Tailored hours −− Extended hours −− Extended hours
−− Reciprocity income −− Sales lead generation −− Sales lead generation −− Center of sales and
service excellence
−− Minimal staffing −− Regular staffing: meeter −− Specific staffing:
DESCRIPTION
levels (not bank skilled and greeter, cashier dedicated business −− Specific staffing
employees, people and peripatetic RMs cashiers and (depending on area/
from retailing sector) permanent RMs segment served):
−− Able to accept and dedicated business
−− Fully automated manage anything −− Highly specialized cashiers and
mortgage, trading permanent RMs
−− Belonging to full −− Belonging to advisers
service/light branches full-service branches −− Location of experts
−− Supports light branches
−− Tailored merchandising −− Standard merchandising for complex service/sales −− Supports all other types
(focus on area and for regulated sales
seasonal campaigns) −− Full merchandising
−− Tailored merchandising,
generating branch traffic focus on innovation
−− Advanced ATM −− Remote advisory −− Digital meeter and greeter
KEY FEATURES
−− Self-service,
supported by hubs innovative tools
−− Opening hours
differentiated per −− Flexible concepts
local needs −− Possible franchising model
Source: Accenture
Accenture Distribution and Marketing Services

6. 6
The future is now: As a first step, banks could design an
integrated customer experience based
Customers of the “Intelligent Multichannel”
Bank can benefit from the ability to
three innovative on a streamlined multichannel approach interact with the bank anywhere, anytime,
“Banking 2016— and architecture. As banks activate and can receive financial products and
new channels, customer inputs and services based on their needs and behaviors
Next Generation customer knowledge can be expected through their preferred channels.
Banking” models to increase, which would then enable Spain’s Bankinter is a good example of an
banks to create micro-segments.
Doing the basics right may be the ultimate early adopter in advanced analytics. The
Micro-segments are the smallest set of
objective for some banks. However, for bank started working on analytics several
customers with uniform demographics
others mastering the basics becomes years ago and focused on developing
and social behaviors, and form the basis
the foundation on which to build more commercial propositions based on customer
for defining strategic profit pools.
innovative capabilities that can help intelligence and the frequency of customer
address changing customer behaviors The increased capture and application contacts, both proactive and reactive, and
and compete for the critical payments of customer data, properly managed then created the Engloba Geo CRM tool
business against new entrants such as and updated through an advanced in 2009. More recently, Bankinter’s belief
retailers, technology companies, mobile CRM platform, can help enhance the in analytics led it to introduce different
operators and pure-play start-ups. These value and return on product catalogues, units influenced by CRM, such as Risk
new capabilities are embodied in the three commercial campaigns based on real- CRM and Operation CRM, and its sales
pillars of Accenture “Banking 2016—Next time propositions, as well as lower are still growing thanks to additional
Generation Banking”: the “Intelligent distribution costs by optimizing capacity improvements to the Engloba tool.
Multichannel” Bank, the “Socially by micro-segment preferences. Another Spanish bank, BBVA, is a good
Engaging” Bank, and the “Financial/ A multichannel customer experience example of a bank that operates within
Non-Financial Digital Ecosystem” Bank. is based on the right combination of personal advisory space: 24/7 personal
The “Intelligent online and offline processes and can customer service is provided to its
be enhanced by focusing on dedicated clients who use digital channels to do
Multichannel” Bank
advisory services (remote or digital). their banking rather than the branch
The “Intelligent Multichannel” Bank but still want a personalized service.
Expanded bank “availability” for products
frequently engages with customers
and services allows customers to make
through different channels, taking personal
choices continuously based on their
channel preferences into consideration.
needs, while helping the bank refine its
The key differentiator of this model is
knowledge of customer preferences.
the extensive use of analytics that can
enable the bank to more effectively
understand and meet customers’ needs.
Key elements of this model are: Bankinter illustration
1. dvanced multichannel integration
A
focusing on digital channels and
an integrated architecture 2004
2. Pervasive analytics based on
The Science of
effective customer data collection, Managing Customers
micro-segmentation and predictive
modeling to determine the most
effective basket of products
3. eal-time interactions management
R
2009
that can increase conversion rates Client Retention Model
from inbound and outbound contacts
4. dvanced advisory services leveraging
A
digital channels and personal analytics
5. roduct offerings and related
P
2010
pricing schemes based on micro- Analytics Pervasivity
segments and optimized by channel
Accenture Distribution and Marketing Services

7. 7
Banks should consider a set of distinctive capabilities to compete in the future
TODAY “Next Generation Bank” models
−− Effective multichannel integration
−− Pervasive analytics
The “Do the The “Intelligent −− Real-time event management
basics right” Bank
Multichannel” Bank −− Personal digital advisory
−− Branch network
optimization −− Product offering optimization and scientific pricing
−− Basic multichannel
orchestration
−− Deep customer
understanding −− Social media listening and monitoring
−− Need-based offerings The “Socially −− Social digital marketing
(clustering client engagement)
−− Web and mobile Engaging” Bank −− Social CRM (data enrichment
channel marketing and optimized offering)
and effectiveness
−− Empowered branch
front-line and
sales tools
−− Smart interaction The “Financial/Non- −− M-payments
with customers −− Mobile commerce ecosystem
−− Performance
Financial Digital −− Mobile marketing M-loyalty and analytics
management Ecosystem” Bank −− Partnership and alliances management
Source: Accenture
Possible Paths
Pervasive analytics, a real-time marketing engine and advanced
multichannel integration can more than double conversion rates
Customer Analytics Marketing Engine Multichannel Interaction
−− Continuously updated −− Next best offer based −− Real-time proposition
customer data on real-time inputs and
−− Customized paths based
collection through micro-segment features
on micro-segmentation
all channels and actions prioritization
(focus on pre-design
(business rules)
−− Dynamic segmentation customer experience for
and micro segmentation −− Focus on moments each micro-segment)
of truth
−− Cost optimization
and channel capacity
evaluation
MONEY ON THE TABLE
−− x 2/3 conversion rates
−− x 2/3 customer interactions
Source: Accenture
Accenture Distribution and Marketing Services

8. 8
The “Socially Engaging” Bank The key components of the Most banks today cluster customers
“Socially Engaging” Bank are: through traditional drivers (such as average
The second “Banking 2016—Next Generation revenue, cross-selling rate) and engage
Banking” model emphasizes engaging 1. Social media monitoring to
them on a “push” basis. In a “Socially
customers where they spend their time, identify opportunities to engage
Engaging” Bank, interactions are much
with a specific focus on social media to customers, mitigate risks and
more personalized. The bank has tailored
increase customer intimacy. The intention promptly react to issues
interactions with customers based on their
is to create relationships based on personal 2. ocial digital marketing building on
S interests and intentions communicated via
interests, leverage influencers and facilitate clustering to enable the bank to better their actions on social media (for instance,
co-creation (the bank and its customers). define the best content for individual by “liking” or sharing something). Such
customer profiles and attract them actions can help the bank group customers
3. ocial CRM enriching customer
S by common interests, have dialogues
data with social media data, thus with them daily on relevant subjects and
facilitating more effective propositions offer products when customers need
them. The bank subsequently becomes
a daily partner, able to address client
needs and play an active role along the
entire purchasing path, instead of only
engaging the client in the final phase.
Social media positioning—transformation journey
Build communities Engage users Drive business
Create audience with several Have ongoing business interactions Achieve results integrating social
communities aggregated on with social media users media as an engaging layer
relevant interest/topics (“service platform”)
−− By products −− QA sessions −− Product development
−− By financial need −− “Offline” caring after −− Initiatives leveraging virality
online interception (e.g. member get member)
−− By non-financial need
−− Customer care −− Initiatives leveraging
−− By customer segment
“social information”
−− Contests (to get influencers)
−− Location-based initiatives
−− “Edutaining” videos
−− Entertaining apps/videogames
−− Virtual branch
−− Understand your position −− Address customer needs −− Develop new offerings
(brand and products) and complaints
−− Collect relevant data
−− Leverage influencers
−− Overall positioning
Brand
−− Overall sentiment about
Listen Product existing or new products
Collect relevant feedback to
−− Collection of feedback about initiatives
feed other key components and Initiatives
tune initiatives −− Interception of customer complaints
Customers −− Enrich customer profile by
collecting customer interests
Source: Accenture
Accenture Distribution and Marketing Services

9. 9
The more the bank interacts with customers, American Express is one of the financial via Facebook, Foursquare and Twitter,
the more information about customers’ services companies that have effectively enhanced by geo-localization functionality.
lives and habits that can be collected to applied a strategy of social engagement. More recently, American Express developed
refine communities/profiles. This process American Express started with customer the Go Social platform, which has
can be further extended by introducing service via Twitter and then expanded helped its small-business clients create
real co-creation processes to develop its proposition by taking a cue from and autonomously manage commercial
new products or services and that can Amazon, who asked its customers to link campaigns (increasing merchants’
be subsequently offered to different their Amazon accounts to their Facebook acquisition rate from the program’s
profiles. Either way, customers are led profiles in 2010. This allowed Amazon first phase by more than 50 percent).
to feel that they are part of the bank, to analyze a complete profile, including Learning from other retail businesses
which helps to foster greater loyalty to preferences, needs and friends, helping can also be valuable: for example,
the institution and makes them less likely it formulate customized offerings and beverage maker Gatorade has created
to shop around for a different provider. discounts. American Express created a Mission Control Center, a “war room”
“Small Business Saturday”, playing off
Investing in social media has essentially for monitoring its brand in real-time
more common sales days like Black Friday
become a requirement to engage today’s across social media, tracking various data
and Cyber Monday. The initiative, based
customers, considering the extraordinary and running detailed sentiment analysis
on linking customers’ American Express
growth in social media adoption (400 around key topics and products so it can
cards to their Facebook accounts to get
percent increase in the average time respond or adjust its strategy accordingly.
rewards, has demonstrated itself to be
users spend on Facebook from 2009-
highly successful (30 percent increase in
2011, according to Comscore 2011) and
sales from 2009 to 2010). In 2011, another
Generation Y average usage. In addition, a
initiative, “Link, Like, Love”, further increased
surprising 75 percent of social media users
American Express’ relevance as a social
are above the age of 30, which suggests
media player by providing customized
that banks should test new approaches on
offerings to customers based on their
clients who fall into this age group first.
spending, location and social media profile
Amex illustration
“We need to go where our
Cardmembers and merchants are...”
DAVID WOLF
Vice President of Global Marketing Capabilities
SOCIAL MEDIA VISIONS, 2010
Small Business Saturday
Nov. 27
First business step on social media
2010
Link, Like, Love
Cardholders benefit from personalized merchant deals linking their card with
Facebook, Twitter and Foursquare
2011
Accenture Distribution and Marketing Services

10. 10
The “Financial/ competitiveness in the payment arena services that are consistent with the bank
and helps retain existing customers vision and image, trusted by the customer.
Non-Financial Digital
Ecosystem” Bank 2. Enriched propositions through But how can the bank create attractive
mobile commerce focused on financial deals and improve customer engagement?
The “Financial/Non-Financial Digital and non-financial offerings, mobile Analytics and marketing capabilities linked
Ecosystem” Bank represents the bank marketing, m-loyalty and m-analytics with mobile services are required. This
“where the customer is”, providing both means the bank must be able to leverage
financial and non-financial offerings. 3. Alliances and partnerships with
customer information gathered through the
This model uses the power of mobile non-banking operators and
mobile device, such as mobile transactions
technology to offer services extending creation of related content
(m-payments) and geo-localization.
beyond traditional banking products The bank has the opportunity to become Combined with innovative marketing
through a network of partners. The bank a “one-stop shop” and satisfy all relevant initiatives based on mobile advertising,
can decide to create or be part of a digital customer needs starting from a unique daily deals, hot deals and loyalty
ecosystem, depending on the payments point of contact built on partnership and programs, the overall concept facilitates
solution and the role it intends to play. customer trust. As a first step, the bank interaction with customers in real time.
The key components of the “Financial/Non- must determine the most attractive non-
Mobile payment is a key capability here,
Financial Digital Ecosystem” Bank are: financial partners and related offerings
given the number of new entrants (e.g.
around which to design a complete
1. Mobile payments based on Near telecommunications companies, retailers) in
customer experience. Operational alignment
Field Communication (NFC) or the payment space. M-payments can enable
and management are crucial parts of
mobile wallet, that enhances bank transactions and ensure the connection to
delivering effective and secure integrated
The bank ecosystem proposition
One-stop shop Extreme customization
Many needs, one brand, one app
Offering portfolio Offering model
−− M-payments −− Daily deals
−− M-ticketing −− Geo-based offerings
and search nearby
−− Non-banking products and
Room for convergence
services (from partnerships −− Cross-industry loyalty programs
with retailers, etc): lifestyle, with reward system
retail and entertainment, −− Product and pricing comparison
travel and transport
−− Social media integrated
−− Customized and integrated
financial offerings with −− Digital marketing*
non-banking products −− Analytics and
(e.g. travel insurance, campaign execution*
consumer loans)
−− Traditional banking services
(e.g. money transfer)
Both individual’s and merchant’s needs can be satisfied through a multichannel platform enabling trading and
transactions “on the go”
* Main impact on both individual and merchant needs
Source: Accenture
Accenture Distribution and Marketing Services

11. 11
additional services usually included in the very beginning and continue to do so cloud storage and a best-in-class search
m-commerce proposition. We suggest banks throughout by leveraging its partnerships engine, proprietary browser (Chrome),
precisely define an m-payments strategy, with non-financial institutions. operating system (Chrome+) and the most
ideally based on the most common and common smartphone OS (Android), Google
It’s important to emphasize that this
advanced payment solution such as the Maps, GoogleTV, YouTube, Talk and Google
model has been designed with the view
mobile wallet. Once the payments solution Voice, proprietary apps domain, its own
that customers dealing with so much
is in place, the customer base can be music offering, and Google+ (a mix of
information will want and need to trust
better protected and the risk of customers Twitter and Facebook). Google also is an
fewer ecosystem operators. We think
changing providers is reduced, given the important player in the NFC ecosystem.
Facebook will be the operator for the “Share
increased natural trust for payment services Its relationship with MasterCard and Citi
experience” ecosystem, Google for the
provided by banking institutions versus allows Google to offer retailers more data
“Search” ecosystem, big telecommunications
companies from non-financial sectors. about their customers and help merchants
companies for the “Connect me” ecosystem
target ads and discount offers to mobile-
In this way, the bank can assume the role and big banks for the “Economic choices”
device users near their stores. Google
of trusted advisor, supporting customers ecosystem. For banks that aspire to the
Wallet passes payment information over
with financial and non-financial offerings “Financial/Non-Financial Digital Ecosystem”
existing payment protocols (including
and opportunities, such as buying a house, model, lessons can be learned from some
MasterCard PayPass and Visa PayWave),
a car, or even supporting the customer of the defined ecosystems, like Google.
and the Nexus S smartphone—which
preparing for marriage. For all needs The online giant has created one of the
Google developed with Samsung—is
linked to economic choices, the bank is most complete digital ecosystems through
already enabled for NFC transactions.
able to support the customer from the a number of integrated services, including
The digital ecosystem:
keeping the customer connected, engaged
“Connect me” ecosystem
(ATT, Telefonica, Orange)
“Share experience”
ecosystem (Facebook)
“Economic choices”
Customer ecosystem (banks)
“Search” ecosystem
(Google)
“Discover” stuff
ecosystem (Amazon)
Accenture Distribution and Marketing Services

12. 12
Among banking players, Commonwealth
Bank of Australia’s (CBA) mission is to be
the first “truly mobile bank”. In 2010, CBA
launched the CommBank Property Guide,
a mobile app for customers who want to
buy a home. Thanks to partnerships within
the real estate industry, the bank is able to
provide information about houses, prices,
area attractiveness and then simulate
tailored mortgage scenarios. This end-
to-end approach has propelled the CBA
app’s success and raised the possibility of
extending its uses to other sectors, such as
autos. Another step CBA took to establish
its role in the mobile ecosystem is related to
P2P payments and is based on the launch of
its “Kaching” initiative, where customers can
pay through Facebook, email or a mobile
number: in less than two months the app
has been downloaded by 110,000 customers.
Commonwealth Bank of Australia illustration
Vision for 2013
2010
Anyone, Anywhere, Anytime
End to End Needs Coverage
2010
House need: real estate app produced
1% of mortgages
Kaching P2P APP
2011
110K downloads in 2 months
Accenture Distribution and Marketing Services

13. 13 13
“Given the current global banking landscape and
the further changes and disruptions on the horizon,
banks that grasp and execute these new business
models and principles are better equipped to
survive and thrive through 2016 and beyond.”
Accenture Distribution and Marketing Services

14. 14
Capabilities mix
The “Financial/
The “Do the The “Intelligent The “Socially Non-Financial Digital
Focus areas
basics right” Bank Multichannel” Bank Engaging” Bank Ecosystem” Bank
Branch network optimization
Web and mobile channel
marketing and effectiveness
Basic multichannel orchestration
Empowered branch front-line
and sales tools
Deep customer understanding
Smart interaction with customers
Needs-based offerings
Performance management
Effective multichannel integration
Pervasive analytics (next
product, pricing, etc.)
Real-time event management
Personal digital advisory
Product offering optimization
and scientific pricing
Social media listening and monitoring
Social digital marketing (clustering,
client engagement)
Social CRM (data enrichment
and optimized offering)
M-payments
Mobile commerce ecosystem
Mobile marketing, M-loyalty and analytics
Partnership and alliance management
Low Medium High
Accenture Distribution and Marketing Services

15. 15
Moving forward: In planning for the future,
we recommend banks:
adopting “Banking • efine a shared vision on future
D
2016—Next Generation scenarios/opportunities involving the
Banking” capabilities entire management team. In doing
so, it’s essential to assess customer
The three “Banking 2016—Next Generation base and prospects to identify a
Banking” models are not final destinations common foundation for any decision
per se, but rather represent the higher
• efine a “North Star” model in light
D
maturity levels of all the capabilities
of the three defined business models.
they encompass. Each bank can develop
A “North Star” model is defined by the
their identified capabilities differently,
appropriate capability mix, and how it
but defining a clear strategy and
affects appropriate investment choices
customer proposition are paramount.
• nsure a dedicated focus on
E
Capability maturity levels can be different.
“Doing the basics right”, creating
Banks can pursue their journeys toward
a “war room” if appropriate
their chosen model by considering a
broad mix of potential capabilities, • reate a digital lab and foster a
C
each opting for the capabilities mix “test and learn” approach across
most appropriate to its business and social, mobile and digital services
operating model goals. They then need • efine an appropriate sourcing
D
to develop and build out their own strategy to scale and deliver
portfolio of capabilities to achieve them. required capabilities at speed
This journey will be based on: By following the “Banking 2016—Next
• Market Generation Banking” approach, banks
are better positioned to achieve their
• Strategy pursued
defined “North Star”, thereby increasing
• vailable capabilities/current
A performance and competitiveness in the
capabilities maturity level near- and long-term. The money at stake
• Investment affordability is significant. With the right strategy and
level of commitment, banks in developed
markets stand to double their annual
revenue growth rates (i.e., from 4 percent
to 8-plus percent) and lower their costs
to serve by more than 20 percent. Given
the current global banking landscape
and the further changes and disruptions
on the horizon, banks that grasp and
execute these new business models and
principles are better equipped to survive
and thrive through 2016 and beyond.
Accenture Distribution and Marketing Services

16. For more information, please contact: Contributors: About Accenture
Global Ambrogio Terrizzano Accenture is a global management
ambrogio.terrizzano@accenture.com consulting, technology services and
Piercarlo Gera
outsourcing company, with more than
Piercarlo.gera@accenture.com
Silvia Pesaresi 246,000 people serving clients in
silvia.pesaresi@accenture.com more than 120 countries. Combining
North America unparalleled experience, comprehensive
Nigel Smith Monica Del Naja capabilities across all industries and
Nigel.smith@accenture.com monica.del.naja@accenture.com business functions, and extensive
research on the world’s most successful
Stephen Gardiner – Canada
companies, Accenture collaborates
Stephen.gardiner@accenture.com
with clients to help them become
high-performance businesses and
Europe, Africa, Latin America governments. The company generated
Alberto Antonietti – Italy net revenues of US$25.5 billion for the
Alberto.antonietti@accenture.com fiscal year ended Aug. 31, 2011. Its
home page is www.accenture.com.
Joël Nadjar – France
Joël.nadjar@accenture.com
Peter Kirk – UK/Ireland
Peter.kirk@accenture.com
Miguel Montañez – Spain
Miguel.montañez@accenture.com
Robin Silfverhielm – Sweden
Robin.silfverhielm@accenture.com
Flaviano Faleiro – Brazil
Flaviano.faleiro@accenture.com
Christof Innig – Germany
Christof.innig@accenture.com
Asia Pacific
Mark Halverson – Japan
Mark.a.halverson@accenture.com
Alexander T. Trott - China and Singapore
Alexander.t.trott@accenture.com
David J. Levi – South East
Asia and Australia
David.j.levi@accenture.com
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