Accenture Everyday Bank

8/9/2019 Accenture Everyday Bank

1/8

TheEveryday

BankHow Digital isRevolutionizingBanking and

the CustomerEcosystem


2/8

$

$

$

$

David and Marie are ready to take the plunge. They intendto become homeowners.

After connecting with their banks loan officer to get theball rolling, they receive a Facetime call from their day-to-day banking contact, Charles. Congratulations! he says.Based on all we know about you two, we recommendhouse hunting in the Wolcott Heights neighborhood. Itsclose to both of your workplaces. Given your lifestyle andpurchases youve made, I believe youll fit well with thiscommunityand I think youll love the schools. Ive justsent sample listings directly to our app. Im also passingon a realtor specializing in homes at your price range, whooffers a low commission fee.

Using the banks app, David and Marie can point theirmobile phone cameras at properties and pull up propertydetails and interior photos, as well as interest rate andloan-related data, estimates around purchase priceand monthly payments, plus the banks assessment ofaffordability given David and Maries spending, saving andlifestyle habits.

Weeks later, ready to buy their dream home, they use theirtablet to visit the banks website and begin the mortgageprocess. Logging into their account, David and Marie

receive recommendations around type of loan, interestrates and payment plans, all geared toward their needs. Anautomated window pops open to step them through theonline paperwork. Digital signatures can be used, and thetablet camera can scan the couples drivers licensesoreven their retinasto confirm identification.

When their application is complete a second windowopens, offering links to a lawyer, a home insuranceprovider, a home inspector and a moving companyallspecific to their needs and offering discounted low rates.

Later, when the purchase is finalized, an e-mail arrivesindicating the bank will handle reconnecting the couplesutilities from their current apartment to the new home.

David and Marie rave to their friends about their banksinvolvement in their home purchase. Not only did theirtrusted institution offer reliable advicebefore they knewthey needed itbut it connected them to low-cost keyresources, tailored just for them, to help them buy theirfirst home and manage the move.

Their bank has saved them both time and money, andcome to know them even better.

2 | THE EVERYDAY BANK


3/8

Todays banks can be central to lifestyle purchases, in thesame way that social media and providers like Amazon havebecome central to retail purchases. Or, they can remain on theperiphery, handling strictly financing and fund transfers.

Banks are at a crossroads. They face critical choices that canset them on the path toward becoming an Everyday Banktrusted, indispensable and central to consumers every dayactivitiesor a purely transactional provider. With up to a thirdof their revenues at risk, banks cannot afford to make thestaid, safe choice.1Those that choose the path of the EverydayBank can expect an overall difference of 50 percentage pointsin operating income over those who do not (see Figure 1).2

The CrossroadsAs technology drives dramatic changesin consumer behaviors and expectations,it uproots traditional transactions for allplayersincluding banks.

Cloud services, predictive tools derivedfrom big data and omni-channel marketingand distribution mean a higher volume offaster, more scalable transactions, not tomention a more robust and satisfying

consumer experience. Consumers havecome to expect a more personalizedshopping experience, one whereinproducts are recommended based on pastbehaviors and where excellent values arepresented routinely.

The fact that 20 percent of customerschanged some or all of their retail bankingproducts in 20123is tied at least in part totheir increased expectations, driven by alltechnology can do to make transactionsengaging.

Today, customers want their resourcesto be fingertip-ready. They expect datainstantly, as quickly as they can pull amobile phone from their pocket and tap ina query. In five short years, at least three

of every four customer interactions will beonline or mobile. Thats banking on the go.

Banks have a place in our online, ever-available, user-friendly and intuitiveworld. Yet they must find and claim theirspace quickly. Already, innovators such asGoogle Wallet, and Square in the UnitedStates or iZettle in Europe, and Alipay inChina are moving into banking territory,presenting a new competitive challengein the industry. By 2020, more than 30percent of banking revenues could be atrisk thanks to new competitors and newtrends.4

To respond, banks must make their move.

100%

Up to 30 pp

INDICATIVE

Pre-tax

ProfitsToday

Revenues

at Risk

Efficiency

Gain

Additional

RevenuePools

Pre-tax Profits

by 2020

Defensive

Actions

50 pp

125-

135%

THE EVERYDAY BANK | 3

FIGURE 1. Money on the Table


4/8

EVERYDAY IN ACTIONThe Commonwealth Bank

of Australia

The Commonwealth Bank of Australia(CBA) is poised to help its real estate-buying customers. It provides thosecustomers with a mobile app thatgives details regarding 95 percent ofthe residential properties availablefor sale throughout the country.5Included is data regarding recent salesand prices, information about thelocal neighborhoodeven crime rates.Bringing customers back to CBA, theapp offers details about mortgageloans and insurance, both of whichcan be purchased through the banks

website.



5/8

FSN

EEDSSATISF

ACTI

ON

SOLUTIONORCHESTRATION

OFLIFEN

EEDS

BANK

ASVA

LUE

AGGREGATORB

ANKASACCESSFA

CILITATOR

BANK

ASADVICE

PROVIDER

INFO

RM

AT

ION

&

EDUC

ATI

ON

COMMU

NICAT

IONTRAVEL

&LEISURE

HEALTH

&

PROTECTION

HOM

E

CONSUMERGOODS

TRANSPO

RTA

TION

BuyingSuggestions Comparator

Ticketing

PolymorphicPayments

Ecosystem-ba

Large corpora

Retailer/SME

Couponing,Vouchering,

Loyalty

D-MarketPlace

TargetAds

Phone & internet

Training activitiesand education

Newspapers,magazines andbooks

Transportation& parking

Auto(buy and repair)

Textiles & footwear

Electrical appliancesFood

Electronicsdevices

Fuel

PetsReal estate(buy or rent)

Electricity & gas

Home cleaning & care

Home repairs

Furnishings

Home security

Health services

Personaland familyinsurance

Car insurance

Flights Events

Hotels

Leisure activitiesRestaurants & bars

Sportactivities

Ecosystem-based service

Large corporates

Retailer/SMEs/corporates


Everyday BankTo win in this environment, banks mustbecome the indispensable Everyday Bankpositioned to fulfill all their customersdaily financial andnon-financial life needs.

An Everyday Bank offers a complete

customer solution, driving continuousdaily interaction. Using digital levers, thisbank evolves the entire business model,opening access to new business sources,new customers and new profit pools.This bank convenes a digital ecosystem,assembling existing provider partnersand other key players, creating digitalconnections and establishing equitablevalue sharing. The bank reinvents itself asa value aggregator, advice provider andaccess facilitator. In short, the Everyday

Bank places itself at the vital center of adigital village of its own design, one drivenby the banks digital engine. The EverydayBank acts proactivelyand smarteronsocial networks and in every personalinteraction, to improve reputation and trust,where digital technologies can also help.

By creating connections, the Everyday Bankbrings together an extended ecosystem ofprovider partners offering goods and servicesin every area of home and consumption,health and protection, travel and leisure,communication and transportation. Theseoffers are optimized for a digital worldand, presented in an omni-channel setting,

they delight the customer. Tapping big data,the bank comes to know its customers well,and can offer just-in-time, relevant discountsand offers, pre-sale advice, post-sale support,cross sale opportunities and more. Thehuman voice is not lost in this shuffle.Human touch is delivered in high-valuesettings, providing expert advice andguidance at the customers moment of truth.

Behind the curtain, the Everyday Bankis highly industrialized, with automated

front- and back-office processes thatare integrated and optimized for speed,efficiency and scalability. A high-functioning Everyday Bank can:

Slash back-office effort up to 80 percent

Reduce its managed applicationsportfolio by 70 percent

Cut time to market by 40-50 percent

Increase operating income by 25-35 percent6

Consider David and Maries story again.When this couple is ready to buy a new,larger carone that can accommodatetheir growing familytheir trustedbank once again steps in.

Lets examine this car-buyingtransaction.

With the rich customer transactiondata they possessand the insightsthey can derive from itbanks areuniquely positioned to create digitalecosystems. In this case, David andMarie simply inform the bank that theyare car buying, and the bank handlesthe heavy lifting, recommendingvehicle models that can help the couplesave on current fuel costs, offer in-carentertainment for their young children

and benefit from solid resale value.

Next, because it negotiates thousandsof car deals on behalf of its clients,the bank can deliver equitable pricingthat maximizes David and Mariesbudget while offering the dealer areasonable profit. The bank bundlesauto insurance and after-marketproducts into the deal andfactoringin fuel (or battery) charges,recommends a payment plan that,again, makes the most of the couplesmonthly car budget.

FIGURE 2. The Everyday Bank


6/8

EVERYDAY IN ACTIONBBVA

BBVA Compass supports its customerswhen they purchase a new car. Thebank equips car buyers with informationabout not only the list price, but thereal selling price of a car, while also

offering auto loan and insuranceinformation. The banks goal is toensure its customers can negotiatethe best deal.

The next logical step in this process isfor the bank itself to help negotiatethe best price on behalf of itscustomer.

By providing this deep level of service,

the bank positions itself to best serveits young, tech-savvy customerswho expect the ability to easily buyproducts at the best prices thanks tocheap, accessible digital technology.



7/8


The Power ofDigital, RealizedFor banks that can exploit their digitallevers to build these new capabilities, therewards are immense. These banks canincrease customer interactions by up to

250 percent.7Their partners in the digitalecosystem realize higher sales volume,while customers enjoy a richer, moreintuitive experienceincreasing theirloyalty.

Banks at the center of their own digitalvillage more easily acquire and retainnew customers. They can count on deepercustomer relationships and increasedprofits thanks to a higher volume oflower-cost transactions. With robustpre- and post-sale activities they gainadditional service fees.

Banks, in fact, are uniquely positionedto construct this digital village. Thanksto the rich data they possess about theircustomers purchasing and spendinghabits, banks occupy the perfect space,leveraging their very secure datamanagement capabilities: They can ensureecosystem partnersmerchants, service

providers and other retailersget point-of-purchase access to buyers. At the sametime, they anticipate customers needsand point them to ideal providers. Add ineconomies of scale and banks are able tooffer better pricing and higher value toboth customers and merchants.

Certainly, its not all about the bank.As weve seen, partners in the digitalecosystem gain increased traffic,improved customer targeting and higher

sales volume.

Most importantly, customers gainefficiency from this digital world. Theyenjoy an improved experience that meetstheir increased expectations while savingtime and money in a more personalizedand trusting relationship. The EverydayBank provides advice, offers point-of-need access to goods and services and,

by building economies of scale, acts as avalue aggregator, delivering lower coststo consumers. The Everyday Bank bringswith it pricing transparency, trustedadvice, social recommendations andtransactionsas easy as one click.

The JourneyAheadFollowing the path ofthe Everyday Bank willbring banking success in

todays increasingly digital,competitive world.

Accenture can help banks navigate thecomplex journey toward differentiationas an Everyday Bank, thanks to our strongset of skills, assets and capabilities honedthrough our own transformation to digital.

At Accenture, we are continuouslydeveloping our own ecosystem ofdigital assets, accelerators, strategiesand capabilities to help banks reduce

complexity and speed time to market. Findout for yourself. Leverage our expertise insystems integration, mobility, analytics,interactive, delivery centers and Expertiseas a Service. Let Accenture equip youwith the tools youll need to build yourown digital village.


8/8

NOTES1The estimate of 1/3rd of bankingrevenues at risk is based on the analysisof Western European banking revenuepools under the scenario of continueddigital disruption and limited responsefrom traditional banks.

2Accenture Analysis for the EverydayBank POV.

3Accenture Global Consumer Pulse Survey,2013.

4Accenture Research Retail BankingRevenue Disruption Model, 2013.

5

Commonwealth Bank of Australia,https://www.commbank.com.au/about-us/news/media-releases/2010/iphone-property-app.html.

6Accenture Analysis for the Everday BankPOV.

7Ibid.

ABOUT ACCENTURE

Accenture is a global managementconsulting, technology services andoutsourcing company, with approximately289,000 people serving clients inmore than 120 countries. Combiningunparalleled experience, comprehensivecapabilities across all industries andbusiness functions, and extensive researchon the worlds most successful companies,Accenture collaborates with clients tohelp them become high-performancebusinesses and governments. The companygenerated net revenues of US$28.6 billionfor the fiscal year ended Aug. 31, 2013. Itshome page is www.accenture.com.

Contact UsJuan Pedro Moreno

Senior Managing DirectorAccenture Global Banking

[email protected]

Piercarlo Gera

Senior Managing DirectorAccenture Distribution & MarketingServices, Accenture Strategy ConsultingFinancial [email protected]

Anton Pichler

Accenture Banking Research [email protected]

Alex Secchi

Accenture Everyday Bank [email protected]

Max Colangelo

Managing DirectorEveryday Bank [email protected]

Massimo Proverbio

Senior Managing DirectorAccenture Payment [email protected]

Alex Pigliucci

Managing DirectorAccenture Financial Services [email protected]

Copyright 2014 AccentureAll rights reserved.

Accenture, its logo, andHigh Performance Deliveredare trademarks of Accenture.

14-1188U/9-6456

Documents

Accenture Everyday Bank