The document discusses digital banking and omni-channel banking. It covers topics like internet banking, mobile banking, the internet of things, customer experience, content creation, data analytics, predictive analytics, CRM systems, and ensuring consistency across channels. The key aspects are using customer data and insights to improve the customer experience across online, mobile, and physical channels to provide a seamless omni-channel banking experience.

1. DIGITAL BANKING
Nikolay SPASOV
TBI Bank Deputy Executive Director

2. WHAT IS DIGITAL BANKING?
Internet Banking Mobile Banking
Omni-channel Banking
NEW UNDERSTANDING OF BANKING
2

3. NEW UNDERSTANDING OF BANKING
INTERNET OF THINGS
(IoT)
DIGITAL BANKING
3

4. WHAT IS INTERNET OF THINGS (IoT)?
Device with
ON/OFF switch
Mobile Phones
Coffee Machine
Fridge
Washing Machine
Heating Systems
Lamps
Headphones
Wearable Devices
SOURCE: Gartner
4

5. 5
Alarm Coffee Machine Fridge
Reminder
Remind me to buy milk!
1 2
3
Remind me to buy milk!

6. 6
Your Car
Calendar
1
2
3
4
Message
I am in a traffic!
Will be late with
10 min.
5
New Bulgarian University
Maps

7. 7
AN E X P L O S I O N O F C O N N E C T E D D E V I C E S
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
50
30
40
20
0
10
Equal to Sofia City
population in that time
Increase of connected
devices in 11 years
CISCO estimates that
IoT is born in 2008-2009
US National Intelligence Council recognizes
IoT on their list with six most “disruptive“
with expected impact till 2025
Machine-to-machine will reach 18
billion by 2022 with consumer
electronics & intelligent houses
The number of connected devices
to internet exceeds twice the
population of the planet
Emerging sensors – traffic light cameras,
parking spot sensors, entertainment & smart
utility meters are all communicating to other
machines via broadband
Taking population predictions into account,
there will be about 6.6 devices per human on the
planet
DEVICES
YEARS
1992 2003
2012
2009
2013
2014
2015
2016
2017
2018
2019
2020
SOURCE: US National Cable & Telecommunications Association
Songdo, South Korea

8. INTERNET OF THINGS & DIGITAL BANKING
8
Users Data

9. 9
INTERNET OF THINGS & DIGITAL BANKING
Banks
Data
IoT
Car Accident
1
Financial Data
2
3
4
Customer X
Bank

10. 10

11. DIGITAL BANKING PILLARS
Digital Banking
Experience Content Data & Analytics Omni-channel 11

12. DIGITAL BANKING PILLARS
Digital Banking
Experience Content Data & Analytics Omni-channel 12

13. 1313
TRADITIONALCYCLEONLINE
awareness information advice
becoming a
customer
servicing &
transactions
share
BankLeaflets Bank
Officer
Bank Service
& TRNX
Worth-To-
Mouth
Presence Personali-
zation
Interactive Simplicity Convinience Feedback

14. You’ve got to start with the
customer experience and work back
toward the technology – not the other
way around
Steve Jobs
1955 - 2011
14
“
”

15. CUSTOMER JOURNEY MAPPING (MORTGAGE LOAN)
Young Couple
THINKING &
FEELING
BANK
TECHNOLOGY
OPPORTUNITIES
CONSIDER
ACCESS OPTIONS
DISCOVER
DEFINE REQUIREMENTS
SELECT
CHOOSE WHAT TO BUY
VERIFY
ID & FINANCIAL CHECK
PURCHASE
SALE NEGOTIATED
COMPLETE
MOVE
Decide
to buy
Learn
about the
mortgage
Calculate
the budget
Property
search
Compare
mortgages
Apply for
mortgage
loan
Assessment
Sign
contract &
Deal
Move
15
Renting means
freedom w/o security
Buying a property is
more binding than
marriage
A real estate agency
will save money
Visiting bank for
consultation - helpful
Selecting real estate
agency – comparing &
selecting property
Form filling is time consuming
& the bank should know our
details, already
The bank
needs hard
copies
Just something
that will pass
quickly
The bank
officer will
handle
everything
Can’t this all
be online?
All parties
communicate hard
The bank
officer
kept us
updated
This took
time!
We need
to clean 
• Explains products
• Prepares indicative offer
• Advices to select real estate
agency
BANK CUSTOMER
SERVICE OFFICER
• Fills in application form &
copies ID Cards
• Provides list with required
documents
BANK CUSTOMER
SERVICE OFFICER
BANK CREDIT
DEPARTMENT
• Performs assessment of
applicants
• Evaluates property
• Prepares approval
• Periodically updates the
customers over the
status of their
application
BANK CUSTOMER
SERVICE OFFICER
Online one-stop-
shop preposition
Online advisory,
including real estate
offer & indicative
budget
Auto data gathering
from state databases
(NSSI; GRAO; BNB;
etc.) + IoT + Social
Assessment
Software & Decision
Engine
Biometrical
electronic
signatures
software
Quick & easy
Less time &
efforts
consuming

16. Customer experience is the cumulative impact of
multiple touch points over time which result in a real
relationship feeling (or lack of).
Warren Buffett
Customer experience helps you drive
value, reduce cost and build
competitive advantage
16
“
”

17. CUSTOMER EXPERIENCE VS. BUSINESS VALUE
How often are customer insights used
to drive decision-making around the
organization? Almost
always
10,7%
Occasionally
37,3%
Frequently
30,7
Infrequently
16%
Not at all
5,3%
17SOURCE: Customer Strategist, Volume 6
Top actions taken based on customer
experience metrics
1. Improve customer-facing operations
2. Review results across the organization
3. Improve channel interactions
4. Report results to the entire organization
5. Improve non-customer-facing
operations
6. Reward customer-facing employees
based on results
7. Reward executives based
on results

18. CUSTOMER EXPERIENCE VS. BUSINESS VALUE
What experiences are most enhanced
or modified based on customer
experience measurement?
18SOURCE: Customer Strategist, Volume 6
How difficult is it to colerate changes in
customer experience with changes in
business performance (revenue,
operating margins, customer lifetime
value)?
1. Omni-channel
experience
2. Mobile
experience
3. In branch
experience
4. Phone agent
experience
5. Web
experience
Extremely
difficult
32.4%
Moderately
difficult
28.2%
Somewhat
difficult
23.9%
Not at all
difficult
7.0%
Haven’t
tried
8.5%

19. CUSTOMER EXPERIENCE EQUATION
The ability of an
organization to increase
its customer base
The ability of an organization to
keep and grow the customers it
already has
Acquisition Retention Efficiency
The ability of an organization
to do more with less
GENERATE MORE
OPPORTUNITIES
INCREASE BRAND
EQUITY
INCREASE
MARKET SHARE
INCREASE SHARE
OF WALLET
DRIVE LOYALTY
DRIVE ADVOCACY
INCREASE
ROI
INCREASE
PRODUCTIVITY
19
DECREASE OPS
COST
Customer Experience

20. CUSTOMER EXPERIENCE METRICS
20
Acquisition Marketing Campaign
Effectiveness
Up-Sell Cross-Sell
Rate
Average Revenue
Per Customer
Products & Services
Per Interaction
Retention
Efficiency
Average Resolution
Time
Uptime Channel
Accessibility
Channel Cost
Acquisition Cost Retention per
Customer - Cost
First Contact
Resolution
Average Handle
Time

21. DIGITAL BANKING PILLARS
Digital Banking
Experience Content Data & Analytics Omni-channel 21

22. 22
CONTENT

23. “Content isn’t just a tactic, it’s a
function of your entire marketing process.
”
23
Robert Rose

24. 24
CONTENT ORGINATION
CREDIT & DEBIT
CARDS PRODUCTS
MORTGAGE &
HOUSING LOANS
PRODUCTS
CONSUMER &
PERSONAL LOANS
PRODUCTS
SAVING PRODUCTS
INVESTMENT
PRODUCTS
FINANCIAL
SERVICES

25. 25
HOW BANKS BECAME PUBLISHERS?
75%Local
Banks
87%Affluent
Customers
RESEARCH
Local Financial Media:
1/2 – connect with PRO’s
1/3 – PRO’s content
1/4 – create PRO content
International Financial Media:
Digital Marketing Team

26. DIGITAL BANKING PILLARS
Digital Banking
Experience Content Data & Analytics Omni-channel 26

27. 27

28. 28
Without data you are just
another person with opinion.“
”
William Edwards Deming
1900 - 1993

29. RECAP
Customer Experience Banking ContentFinancial Data
29
IoT Data
Data Management

30. 30
DATA MANAGEMENT TOOLS & ANALYTICS
80%Local Banks
place customer
centricity as a top
priority
1out of
every 2
executives believe they do
not have mature
capabilities to support
their customer strategies
??
CONSTRAINS TECHNOLOGY
Real-time
processing of data
& analytics 59%
SOURCE: SAP “Banks Betting Big on Big Data and Real-Time Customer Insight”
Predictive analytics
59%59%
Customer Relationship
Management System 54%

31. PREDICTIVE ANALYTICS
31
PREDICTIVE ANALYTICS is the use of data, statistical algorithms and machine-learning techniques
to identify the likelihood of future outcomes based on historical data.
SOURCE: SAS “Predictive Analytics: What it is and why it matters”
DRIVERS FOR PREDICTIVE
ANALYTICS IN BANKING
Customer
Insight
Customer
Experience
Management
Channel
Execution
Business
Strategy
Risk
Management
Marketing
☛ Sentiment analysis
☛ Social media analysis
☛ Credit analysis
☛ Customer profitability
☛ Virtual agent
☛ Next best action
☛ Relationship pricing
☛ Next best offer
☛ Profitability
☛ Sales/channel performance
☛ Product channel strategy
☛ Risk & capital modeling
☛ Risk & capital management
☛ Risk adjusted pricing
☛ Portfolio risk management
☛ Fraud / AML
☛ Lead generation
☛ Customer segmentation
☛ Campaign management

32. TOP 5 PREDICTIVE ANALYTICS SOLUTIONS
32
Predictive Analytics
SAP Predictive Analytics
PREDICTIVE
ANALYTICS
SOURCE: Gartner Advanced Analytics Quadrant 2015: Gainers, Losers

33. WHAT IS CRM ?
33
system allowing businesses to manage business
relationships and the data and information
associated with them.
Customer Relationship
Management
SOURCE: Salesforce Blog

34. WHAT CRM AFFECTS ?
34
SALES
☛ Product wise pipeline
☛ Customer on-boarding (lead capture)
☛ Real-time sales (online)
MARKETING
☛ Campaign management
☛ Lead distribution to branches
☛ Campaign follow-up
SERVICE & SUPPORT
☛ Listen, engage & respond
☛ Auto assignments to back office
☛ SLA’s and escalations
PRODUCT & INNOVATION
☛ Product analytics
☛ New product market research
☛ Pilot product launch
COMMUNITY
☛ Collaboration analytics
☛ Internal collaboration
☛ Unified employee desktop
CUSTOMER EXPERIENCE
☛ 360 degree customer view
☛ Personalized offers
☛ Alerts
☛ Advisory

35. HOW CRM WORKS ?
35
Electricity Company
Bank
Customer X
80 BGN
Electricity Bill
Customer X

36. HOW CRM WORKS ?
36
Electricity Company
Bank
Customer X
80 BGN
Electricity Bill
Customer X
Account Balance
0 BGN
Customer X

37. HOW CRM WORKS ?
37
Electricity Company
Bank
Customer X
80 BGN
Electricity Bill
Customer X
Account Balance
0 BGN
Customer X

38. HOW CRM WORKS ?
38
Electricity Company
Bank
Customer X
80 BGN
Electricity Bill
Customer X
Account Balance
0 BGN
Your account balance
is 0 BGN. Do you want
100 BGN overdraft for
electricity payment?
Y
Customer X

39. HOW CRM WORKS ?
39
Customer X Electricity Company
Bank
Customer X
80 BGN
Electricity Bill
Customer X
Account Balance
100 BGN

40. CRM & SOCIAL – EXAMPLE
40Facebook

41. CRM & SOCIAL – EXAMPLE
41
Boyko Borisov
CRM System

42. CRM & SOCIAL – EXAMPLE
42Facebook

43. CRM & SOCIAL – EXAMPLE
43Facebook

44. CRM & SOCIAL – EXAMPLE
44
Boyko Borisov
Boyko Borisov
Male
June 13, 1959
Bankya, Bulgaria
Single
female
Friendship
Networking
G.E.R.B.
Christian
Bankya, Bulgaria
CRM System

45. CRM & SOCIAL – EXAMPLE
45
Boyko Borisov
CRM System

46. TOP CRM SOLUTIONS
46

47. DIGITAL BANKING PILLARS
Digital Banking
Experience Content Data & Analytics Omni-channel 47

48. OMNI – CHANNEL BANKING
48

49. 49
OMNI – CHANNEL DEFINITION
OMNI-CHANNEL BANKING is about ensuring customers have a consistent experience of the bank
products and services irrespective of the channel they use, as well as ensuring channel integration and
seamless customer transition between channels.
SINGLE
CHANNEL
Customer
Branch
Customer and bank have a
single touch point
SOURCE: A Market Leader in Ovum's Decision Matrix – Digital Banking Trends in 2014 – Webinar Recap
MULTI -
CHANNEL
Customer
Branch Web
Customer sees brand through
multiple touch points with bank
using siloed communications
Customer
WebBranch Call
CROSS -
CHANNEL
Customer sees unified brand
through many touch points.
Bank has single customer view
OMNI -
CHANNEL
Customer
WebBranch Call Mob
Customer has holistic brand
experience. Bank leverages
unified view of customer

50. 50
OMNI-CHANNEL ENVIRONMENT
Customer
Online Banking Mobile Banking
CRM
Call Center ATM
Corporate Website
Branch
Lending Platform
Social

51. Online and physical branches
are complementary, not rivals.
They must unite together to
increase turnover which is the key
to a successful omni-channel
strategy..
“
”Marc Benioff
51

52. BRANCH IN OMNI – CHANNEL
52

53. BRANCH IN OMNI – CHANNEL
53

54. BRANCH IN OMNI – CHANNEL
54

55. BRANCH IN OMNI – CHANNEL
55

56. BRANCH IN OMNI – CHANNEL
56

57. BRANCH IN OMNI – CHANNEL
57

58. BRANCH IN OMNI – CHANNEL
58

59. BRANCH IN OMNI – CHANNEL
59

60. BRANCH IN OMNI – CHANNEL
60

61. BRANCH IN OMNI – CHANNEL
61

62. BRANCH IN OMNI – CHANNEL
62

63. 63

64. CONCLUSION
64
As customers become increasingly comfortable with technology, they are
interacting with banks in multiple ways. They expect to be treated as
individuals and according to their preferences. For banks, the time is now
to take advantage of the wealth of customer information available. As the
world becomes even more digital, capitalizing on technology will make the
difference – digital banks are here.

65. 65