Customer Experience

A seamless customer experience is now table stakes in the banking industry. Leading FinTechs bring much more to the game, reimagining services to give customers what they really want. It’s time for financial services institutions to follow suit.

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How you can use the RetailTech Model

The first stage is Research & Development, when an innovation is not fully-fledged and has not yet been adopted beyond prototypes, trials or POCs.

New technologies typically go through 5+ years of R&D, though the timeframe will vary substantially depending on the degree of innovation entailed.

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Model Stages

The Leading Edge stage indicates when an innovation has moved out of R&D and into operation. Approximately 5% of the market adopts the innovation at this stage, usually start-ups and a few industry players known for being forward-looking.

Sometimes, an innovation is picked up from another sector. As indicated in the timeline below, it typically takes 1 to 3 years to move from the Leading Edge to Early Adopters stage.

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Model Timeline

At this stage organisations are more risk averse than those at the Leading Edge, but are still keen to be in the industry’s upper quartile and adopt a new technology.

The broad timeline for technologies to remain at this stage is 2 to 5 years at which point they will have reached around 25% market adoption.

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Model Origins

By this point a technology or business innovation can be considered as Mainstream since it will have been implemented by around 50% of the market.

2-5 years is the typical timeframe for this stage.

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Model Lenses

Technologies in the Late Adopters stage have been widely adopted across the industry with 80% - 100% of the market using them after a further 5+ years.

Not all technologies end up being adopted by everyone, with some 20% of technologies never reaching full adoption.

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R&D

The first stage is Research & Development, when an innovation is not fully-fledged and has not yet been adopted beyond prototypes, trials or POCs.

New technologies typically go through 5+ years of R&D, though the timeframe will vary substantially depending on the degree of innovation entailed.

. .
5+
Leading Edge

The Leading Edge stage indicates when an innovation has moved out of R&D and into operation. Approximately 5% of the market adopts the innovation at this stage, usually start-ups and a few industry players known for being forward-looking.

Sometimes, an innovation is picked up from another sector. As indicated in the timeline below, it typically takes 1 to 3 years to move from the Leading Edge to Early Adopters stage.

. .
5%
1-3
Early Adopters

At this stage organisations are more risk averse than those at the Leading Edge, but are still keen to be in the industry’s upper quartile and adopt a new technology.

The broad timeline for technologies to remain at this stage is 2 to 5 years at which point they will have reached around 25% market adoption.

. .
25%
2-5
Mainstream

By this point a technology or business innovation can be considered as Mainstream since it will have been implemented by around 50% of the market.

2-5 years is the typical timeframe for this stage.

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50%
2-5
Late Adopters

Technologies in the Late Adopters stage have been widely adopted across the industry with 80% - 100% of the market using them after a further 5+ years.

Not all technologies end up being adopted by everyone, with some 20% of technologies never reaching full adoption.

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80%-100%
5+

The first stage is Research & Development, when an innovation is not fully-fledged and has not yet been adopted beyond prototypes, trials or POCs.

New technologies typically go through 5+ years of R&D, though the timeframe will vary substantially depending on the degree of innovation entailed.

The Leading Edge stage indicates when an innovation has moved out of R&D and into operation. Approximately 5% of the market adopts the innovation at this stage, usually start-ups and a few industry players known for being forward-looking.

Sometimes, an innovation is picked up from another sector. As indicated in the timeline below, it typically takes 1 to 3 years to move from the Leading Edge to Early Adopters stage.

At this stage organisations are more risk averse than those at the Leading Edge, but are still keen to be in the industry’s upper quartile and adopt a new technology.

The broad timeline for technologies to remain at this stage is 2 to 5 years at which point they will have reached around 25% market adoption.

By this point a technology or business innovation can be considered as Mainstream since it will have been implemented by around 50% of the market.

2-5 years is the typical timeframe for this stage.

Technologies in the Late Adopters stage have been widely adopted across the industry with 80% - 100% of the market using them after a further 5+ years.

Not all technologies end up being adopted by everyone, with some 20% of technologies never reaching full adoption.

Rethinking customer engagement: More than a great digital experience

When it comes to customer engagement, the yardstick by which people rate their bank experience comes not from other banks, but often from retailers and social media. Increased expectations apply to the entire customer experience. Today’s consumers expect the interface to be intuitive, the channel to be mobile-first or mobile-only and the communication style to be less stuffed-shirt and more jeans-and-T-shirt.

But customer engagement is not just about a great digital experience. Today’s banking customers are looking for help with money management, as well as money movement. This is an area where next-gen banks are seeking to differentiate themselves, and specialists such as Meniga are partnering with incumbents. For retail customers, this equates to personal financial management advice and services, accessed via mobile. Behavioral economics are being deployed to understand customers and nudge them in the right direction. And in the SME market, banks are incorporating added-value services based on transactional data: receivables funding, real-time cash-flow forecasting and integration of invoices and payments to reduce paperwork. Since these added-value services sit at the nexus of accounting and banking, the battle for the customer is often fought between the banks and the accounting software providers.

At the same time, the Internet of Things, ubiquitous wireless technology and the rise of platforms result in the opportunity to embed banking services in customers’ daily (online and mobile) lives. This creates new distribution channels for financial products in the same way “contextual commerce” is discussed in retail as the ability to buy anything, anytime, anywhere. For example, travel insurance can become an easy add-on to travel booking, not much different than adding the breakfast option to a hotel stay. Bank customers can apply for loans at a point of sale when they have insufficient funds in their account.

On the customer service front, leading-edge companies are incorporating video, Skype and screen-sharing experiences into call centers and online help desks to facilitate on-boarding and reduce the risk of drop-outs. This allows for the real-time exchange of documents, biometric capture, exception handling and digital signatures. Meanwhile, in the branch offices, innovative services mimic online experiences and aim to strengthen customer relationships. A prime example is Virgin Money’s lounges where, from the luxury of a sofa, customers can access free refreshments, Wi-Fi and iPads for banking or browsing.

Explore these and other trends in the Customer Engagement Lens of our Innovation Model.

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Customer Experience Expert

Glynn Roberts
DXC FSI Practice

Arrange a meeting with Glynn Roberts

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