Mobile banking apps are rewiring customer interactions.

1. Banking On Mobile -
Getting Ready For 2016
Tom Farrell - VP Marketing
Barry Nolan - VP Strategy

2. Build a direct relationship with customers
Know and personally interact
with every customer in one simple platform.
2

3. 3
371K
Babies born each day

4. 4
580K
iPhones sold each day
1,500K
Android devices activated each day
371K
Babies born each day

5. 5
1 @facebook
2 China
3 Tencent @WeChat
4 India
5 @WhatsApp
6 @LinkedIn
7 @instagram
8 @twitter
9 U.S.
10 @Snapchat
Mobile First

6. When do we stop calling it a phone?
sound and vision

7. 7
Data
Voice
The
phone is
one of
the least
used
apps

8. 8
13.0%
87.0%
On mobile, people spend
87% time in-app,
versus on the mobile web.
ComScore

9. 9
7s 38s
Average Interaction Times

10. 10
We know human attention
is dwindling
Source: Statistic brain
The average human
attention span in
2000 The average human
attention span in
2013
The average attention
span of a
goldfish
12
seconds
8
seconds
9
seconds
Why the fast and frictionless win
Source: Statistic brain
The average human
attention span in
2000 The average human
attention span in
2013
The average attention
span of a
goldfish
12
seconds
8
seconds
9
seconds

11. The future in banking in two charts
modern love

12. The future in banking in two charts
Mobile is universal
4 bn users
source: A16Z

13. The future in banking in two charts
source: A16Z

14. Mobile banking apps are
rewiring customer interactions
Where are we now?

15. 15
Internet MobileTelephoneBranch
-15% -13% 25% 940%
Source: BBA 2010-2015
# INTERACTIONS 2010-2015

16. 16
2%
- of payments and
transfers by HSBC are
now done in a branch
- the proportion of all
digital banking by Halifax
now done on a mobile
phone
65%
Source: BBA

17. 17
NatWest Bank’s busiest branch is the 7:15am
train from St. Albans.
This is a
mobile-moment

18. 18
10
15
20
25
30
35
40
45
50
55%
10 15 20 25 30 35 40 45 50 55%
Mobile interactions as a percentage of total interactions, 2013 and 2015
South Korea Netherlands
Mobile exceeds online
Online exceeds mobile
US
AustraliaChina
Singapore
Hong
Kong
Mexico
India
UK
France
Canada
Poland
Germany
Spain
Online interactions as a percentage of total interactions
Japan
2013 2015
Figure 4: Mobile is displacing online in banking
10
15
20
25
30
35
40
45
50
55%
10 15 20 25 30 35 40 45 50 55%
Mobile interactions as a percentage of total interactions, 2013 and 2015
South Korea Netherlands
Mobile exceeds online
Online exceeds mobile
US
AustraliaChina
Singapore
Hong
Kong
Mexico
India
UK
France
Canada
Poland
Germany
Spain
Online interactions as a percentage of total interactions
Japan
2013 2015
Average
Age 55 or more
Source: Bain/Research Now NPS surveys, 2015
Figure 4: Mobile is displacing online in banking
Mobile is displacing online in banking
Source: Bain Research

19. 19
0
5
10
15
20 20
17
15
14 14 14
12 12
12
11
10 10 9 9 9
6
2
Average number of routine interactions per respondent in last quarter, 2015
Netherlands
SouthKorea
France
Australia
US
UK
China
Spain
Poland
India
Singapore
Brazil
Mexico
HongKong
Canada
Germany
Japan
Smartphone app Tablet app Mobile browser
Figure 6: Consumers use apps more than mobile browsers
When banking, consumers instinctively reach for an app
Average number of routine interactions per respondent in last quarter, 2015
Source: Bain Research
73%
64%

20. 20
76% use banking apps
every week.
62% more than once a
week
Mobile b
Hardly ever, only when I really need it 10%
2%
Consumers’
connectivity
banking. O
app, more th
at least a fe
in 10 (20%)
A few times a week
42%
Once a week
14%
A few times a month
17%
Once a day
13%
A few times a year
5%
More than once a day
7%
http://newsroom.bankofamerica.com/files/doc_library/additional/2015_BAC_Trends_in_Consumer_Mobility_Report.pdf

21. 21
Where people use mobile banking apps?
Mobile-Moments

22. 22
Every new mobile sensor and service,
has created new interaction opportunities that are avidly used.
Camera
OCR - Check Deposit
Video chat GPS
Location-based services
Wallets
Transactions & rewards
Push Notifications
Customer messaging
Biometrics (Touch-ID)
Customer authentication
Headphones
Accept payments
Source: Fiserve

23. Millennials are the battleground
young Americans

24. 24
Source: Tech.pinions

25. 25http://blog.medallia.com/customer-experience/how-a-great-customer-experience-is-really-delivered/

26. 26

27. 27
Millennials are nearly
twice as likely to switch
financial service provider
18%
10%
3%
Millennials (18-34) 35-54 55+
+80%
Source: Accenture, June 2015
Switched their primary bank last year
+600%

28. 28
Digital Services
33%18%
of Millennials switched
their primary bank within
the past 12 months.
stay with their bank
because of good digital
services.
WINNING MILLENNIAL CUSTOMERS
Source: Accenture, June 2015
Are the biggest factor for
Millennials deciding to
stay or switch.

29. 29
When consumers bank via apps
they are happier & generate more revenue
Golden Years

30. 30
Source: Accenture, 2015
Transactional rather than relationship driven

31. 31
0
4
8
12%
24 28 32%
Online routine Mobile
app routine
Six
interactions
in last
quarter
ATM
Online
sales/service
Mobile
sales/service
Branch
sales/service
Phone
Chat/video
Increasing likelihood to delight
Reliable
Percentage of US respondents, 2015
Decreasinglikelihoodtoannoy
Annoying
Delightful
Variable
Notes: Responses on a scale from -5 to 5 for “to what extent did the interaction increase or decrease your likelihood to recommend your bank?”; likelihood to delight=percentage
Branch
routine
Mobile
browser
routine
Figure 1: Mobile is consistently more likely to delight than other channels
Mobile apps delight more than other channels
Source: Bain Research

32. 32
Revenue is higher with mobile
banking users.
• 46% increase in POS card transactions.
• 45% increase in monthly transaction from
$550 to $801.
Why? The app puts them more
in control of their finances
Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions

33. 33
+46%
POS
transactions
+25%
ATM
transactions
+46%
ACH
transactions
-32%
branch
visits
-50%
customer
churn
Mobile banking versus non mobile-banking customers
Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions

34. 34
Mobile banking customers
at the banks in the study –
not just new adopters – have
higher product holdings at
2.3 products vs. 1.3 for
branch-only customers.
The results are similar for
credit unions. Why do mobile
bankers typically use more
financial institution products
than those who don’t use
mobile banking? Consumers
who use mobile are likely
more engaged with their
financial institutions. As
the relationship between
consumers and financial
institutions deepens, it
enables other types of
engagement. If customers
have savings accounts, auto
loans and mobile banking with
a bank, for instance, they’re
more likely to think of that
financial institution
they need mortgag
financial services
As consumers use
products, they tur
banking to help th
increasingly comp
lives. This may lea
specifically seek o
banking capabilitie
an overall financia
2.3
Product
Holdings
1.3
Product
Holdings
Mobile Banking
Customers
Branch-Only
Customers
Deepening the Relationship
Mobile bankers typically use
more bank products.
Why? Mobile users are more engaged, and
have a deeper relationship with the bank,
enabling more product adoption.
Source: Fiserv Mobile Banking Adoption: Where Is the Revenue for Financial Institutions?

35. 35
Staying in control
The majority (81%) of mobile banking app users are also using banking notifications and alerts.
Gen X (ages 35-49) is the most likely to receive alerts in comparison to the other demographics (91%).
35%
35%
41%
43%
41%
27%
23%
18%
12%
41%
36%
45%
50%
41%
32%
28%
23%
20%
Total respondents Gen X
Bill payment due
Check/payment cleared
Deposit made
Low balance
Fraud/unusual activity
Account accessed via a new device
Credit card limit
New mobile banking functionality
Banking appointment reminder
http://newsroom.bankofamerica.com/files/doc_library/additional/
2015_BAC_Trends_in_Consumer_Mobility_Report.pdf
Staying in control
81% of mobile banking app
users use notifications and
alerts.
Staying in control
The majority (81%) of mobile banking app users are also using banking notifications and alerts.
Gen X (ages 35-49) is the most likely to receive alerts in comparison to the other demographics (91%).
35%
35%
41%
43%
41%
27%
23%
18%
12%
41%
36%
45%
50%
41%
32%
28%
23%
20%
Total respondents Gen X
Bill payment due
Check/payment cleared
Deposit made
Low balance
Fraud/unusual activity
Account accessed via a new device
Credit card limit
New mobile banking functionality
Banking appointment reminder

36. 36
UK
US
55–64
65+
45–54
55–64
45–54
35–44
25–34
18–24
65+
55–64
45–54
35–44
18–24
25–34
0% –5 –10–10 –15 –20
Channel experience score relative
to leading channel, which is
indexed to zero, 2015
The channel experience
for mobile applies across
age groups.
China
UK
55–64
18–24
45–54
35–44
55–64
45–54
35–44
18–24
25–34
25–34
Channel experience score relative to leading channel, which is indexed to zero, 2015
Mobile Online ATM Branch Phone
Source: Bain Research

37. 37
customers who had the best
past experiences spend 140%
more compared to those who
had the poorest past
experience.
https://hbr.org/2014/08/the-value-of-customer-experience-quantified

38. where are we headed?
five years

39. 39
Internet
Mobile
Telephone
Branch
2010 2015 2020 Source: BBA
# INTERACTIONS
2015
Most customers are
“mobile-first”

40. 40
Internet
Mobile
2015 2020
2020
Most customers will be
“mobile-only”

41. 41
Mobile
2020
We’ve seen this story before

42. 42
POSIT
Are the best banks mobile apps?

43. 43
what do you do
when your customers live behind an app?

44. 44
Don’t do this

45. 45
A shrunken website

46. 46
There are over 20 different
products on this home page.
(And a hundred more startups
unbundling them).
Browse and self-serve doesn’t
work well on mobile.

47. 47
Think, and act, mobile first:
Simplify
banking
Solve people’s
problems
Save people
time
The future of banking isn’t products
it’s service experiences.

48. 48
Personalised to the
customer, reflects needs
and wants
Intuitive, simple to use,
simple to act.
Speaks in human,
jargon-free language
Omni-channel aware,
joined up experiences
Know what the data is
telling you.
Deliver at, or anticipates,
the moment of need
The future of banking isn’t products
it’s service experiences.

49. 49
25% of new users will use your app once.
Most 2-3 times.
Personalising onboarding transforms conversion

50. 50
Kate was acquired
via a student
campaign.
This is her first
app open.

51. Build interactions around mobile-moments
moments when your brand is most needed

52. 52
mobile-moment

53. mobile-moment
I need an overdraft
Need a €500
overdraft?
customer bank
Interact at moment of most need for the customer

54. 54
Personalised
Real-Time
Interaction
Action
In-app
Message

55. 55
ntrol
%) of mobile banking app users are also using banking notifications and alerts.
9) is the most likely to receive alerts in comparison to the other demographics (91%).
52%
35%
35%
41%
43%
41%
27%
23%
18%
12%
41%
36%
45%
50%
41%
32%
28%
23%
20%
Total respondents Gen X
Bill payment due
Check/payment cleared
Deposit made
Low balance
Fraud/unusual activity
Account accessed via a new device
Credit card limit
New mobile banking functionality
Banking appointment reminder
http://newsroom.bankofamerica.com/files/doc_library/additional/
2015_BAC_Trends_in_Consumer_Mobility_Report.pdf
55

56. 56
Make banking simpler
if it can be done on a smartphone,
it will be done on a smartphone.

57. 57

58. 58
How do you sell?
Personalised in-app campaigns have the highest
conversion of ANY channel.

59. 59
Who doesn’t have a
credit card account
with us?
Swrve tells you
Deliver and
complete the
campaign in-
app

60. 60
Using people’s name:
Builds better brand
rapport and engagement
Simple to personalise

61. 61
Predictive:
Swrve knows (through
analysing passed usage)
that 6:17pm is the
optimal time to message
Kate.

62. 62
Targeted:
Kate doesn’t have a
credit card with the
bank. Behavioural targeting

63. 63
Goal focused
Every time you
communicate, you
should track against
measurable goals.
Swrve automatically tracks goals
Set message objectives

64. 64
Goal focused
Every time you
communicate, you
should track against
measurable goals.
Swrve automatically tracks goals
Set message objectives

65. 65
Tested
A/B/n test the perfect message.
Variant B
Which message works best?

66. 66
Every message is 1-touch programmable,
making interaction (and conversion) easy.
Interactive In-App Message

67. 67
An in-app message center saves
every important message.
Inbox’s can drive
engagement to over
80%.

68. 68
Think, and act, mobile first:
Simplify
banking
Solve people’s
problems
Save people
time
The future of banking isn’t products
it’s service experiences.

69. Thank you - any questions?
Tom Farrell - VP Marketing
Barry Nolan - VP Strategy