Trust as a competitive advantage in Financial Services. Campaign Asia Finance Spotlight Conference, October 2012

1. Trust as a competitive advantage in the
Financial Services Industry
John Sinke
Regional Marketing Manager, Asia The views expressed are mine and not
those of CMC Markets.
CMC Markets

2. Bonded Trust
Affective Trust
Functional Trust

3. Who do I trust?

4. Banker bonuses Mergers & Acquisitions
Why customers have lost trust in their banks
TRUST
Global Financial Crisis
CRISIS
High fees Government bail outs
Poor customer experience
Failing banks

25. Global Consumer Banking Survey 2011
(Ernst & Young)
• Huge investments
• No bail outs
• Entrepreneurial endeavour
• Wealth creation
Poor Level of Service / Product Offering

26. Trust crisis is not caused by the Great Financial Crisis
Trust has been low for a long time…

27. • Buying expertise of provider
• Ongoing consumer relationship
• Less likely to compare products
• Inertia is rife (‘all the same’)
has its roots in the nature of
consumer finance products

28. Financial Service Providers
exploit consumer inertia?
• Low headline prices
• Poor product and service quality
• Competing for first time buyers

29. is critical
is critical

30. “If your customers don’t
trust you.
You can spend as much
time, effort and money as
you want on marketing
campaigns, branding and
advertising.
It will barely move the
needle.”
Justin Basini
(ex-Capital One)

31. Price? Promotion? Price? People? Place?
TRUST
Customer trust Business Performance
Economically Beneficial

32. Trust will soon become
the most significant
differentiator for online
businesses.

34. Transactions 
Relationships
Social
Media
Revolution
Democratisation
customer
experience

35. T= I + C+P
Trustability Intent to act in Competence to Proactively
customer’s best do so
interest
“Doing the right thing” “Doing things right” “Proactively”
Source: Peppers & Rogers Group

36. Using insights to proactively engage
customers
Customer
Feedback
Customer
Intelligence
Behavioural
Analytics
Data

37. Branches and contact centre at the
centre of trust efforts
Voice
Email SMS
Exceptional
Support
(TRUST)
Online IVR
Mobile Social
Behind every great brand is a great brand experience

38. “It’s already too
late by the time
you’re doing
customer service.”
“The best
customer service
is if the customer
doesn’t need to
call you, doesn’t
need to talk to you.
It just works.”

39. “Too many banks hide behind account “We prefer customers who fit the
terms and conditions” bank’s approach”
“Authenticity is delivering the customer “You don’t need a points programme;
experience promised” you just need to answer the phone”
“Customer experience is not what we
“It’s what the customer thinks it is”
think it is”

40. http://discover.firstdirect.com
“Contact centre is
ambassador of trust
relationship”

42. ©2010 CMC Markets

43. ©2010 CMC Markets

44. ©2010 CMC Markets

45. ©2010 CMC Markets

46. It’s already too late by the time you’re doing customer service
TRUST
Five Steps:
1. Acknowledge long term value customer
2. Ensure a quality product or service
3. Improve IT / Contact Centre Systems &
Customer Analytics
4. Maintain robust voice of customer feedback
5. Stewardship for customer relationships Source: Peppers & Rogers Group

47. It’s already too late by the time you’re doing customer service
Financially not viable?!
- Technology/Social Media:
- Fuel expectations in trust
- Demands transparency
- Economically attractive
- Economic benefits over time
Source: Peppers & Rogers Group

53. http://quiz.extremetrustbook.com/s3/Trustability

55. TRUST CRISIS
• Customers have lost trust in banks
• Trusts crisis linked to nature of consumer finance
• Trust is critical in transaction and relationship
1. Acknowledge long term value customer
2. Ensure quality product or service
3. Improve IT / Contact Centre Systems & Analytics
4. Maintain robust voice of customer feedback
5. Stewardship for customer relationships
COMPETITIVE ADVANTAGE

56. Thank you!
John Sinke
Twitter: @johnsinke
LinkedIn: sg.linkedin.com/in/johnsinke

57. Sources:
• Global Consumer Banking Survey 2011. A new era of customer expectation by Ernst & Young
• Have you earned your customers’ trust? White Paper 2011 by inContact and Peppers & Rogers Group
• A confidence crisis? Restoring trust in financial services, by John Springford, The Social Market Foundation, July 2011
• The Bezos doctrine of ruthless pragmatism. By Barney Jopson, Financial Times, 9 July 2012
• The changing face of Asian personal financial services. Kenny Lam and Jatin Pant, McKinsey, September 2011.
• Financial report: Domestic banks have more local appeal. Remo Notarianni, Campaign Asia, 3 November 2011
• Financial report: Bank on trust. Matthew Carlton, Campaign Asia, 3 November 2011
• Why should anyone buy from you? Earn customer trust to drive business success, Justin Basini, 2011.
• Building trust and loyalty in retail banking: the critical role of customer communications management, White Paper May 2012,
Thunderhead.com
• International Banking, Retail renaissance, The Economist, May 2012.
• Extreme Trust. Honesty as a competitive advantage, Don Peppers & Martha Rogers, 2012.
• The converged lifestyle. Consumers and Convergence 5. KPMG International, December 2011
• Private banking in Asia: going beyond trust and confidence. Singapore Management University, November 2010
• Financial Services, the blame game. Financial Times, 30 September 2012
• The three bitter pills you need to take to restore brand trust. Marketing Week, 20 October 2011.
• Time for finance to get ‘back to basics’? Money Marketing, 2 August 2011
• Nick Brien: Marketing now has 5Ps. Campaign Asia, 18 September 2012
• Megabanks lose more consumer trust while community institutions make gains. The Financial Brand.com, 11 September 2012
• The future for finance as expectations are on the rise - Part II. Sara de Dios, 25 July 2012,
http://blog.havasmedia.com/post/27908180732/the-future-for-finance-part-ii
• Edelman Trust Barometer, 2012 Annual Global Study
• Edelman Trust Barometer, 2012 APAC Results
• Edelman trust Barometer. 2012 US Financial Services and Banking Industries
• Financial crisis, five years on: trust in banking hits new low. The Guardian, 9 August 2012
• Consumer trust in financial services is underpinned by effective communications., 8 June 2012,
http://www.bitecommunications.com/blog/2012/06/08/consumer-trust-in-financial-services-is-underpinned-by-effective-
communications/
• http://smu.edu.sg/knowledge/2012/06/26/private-banking-asia-going-beyond-trust-and-confidence
• http://socialmediaopenkitchen.wordpress.com/2012/08/05/banks-and-social-media-do-you-trust-social-banking/
• http://www.mckinsey.com/Features/Leading_in_the_21st_century/larry_fink
• http://www.marketingweek.co.uk/trends/can-marketing-overcome-its-trust-issues/4000621.article
• Finance Report: Brands fail to connect with Asian consumers. Campaign Asia, 15 October2012
• Understanding Asian Mass Affluents, Fox OneStop Media, October 2012