Product Code: IT003-000537
Abstract
Introduction
Improving online sales and service effectiveness have been key goals for many
banks, and the emergence of new Internet technologies, mobile devices, and
social media has been grabbing the attention of senior management in retail
banking circles as well. In addition, as banks must face the bumpy economic
recovery, the focus on low cost and efficient channels is strong. This makes
it an opportune moment to assess how far digital banking has come and where it
needs to go from here.
Highlights
- Beyond harnessing online and mobile channels to service transactions,
reduce handling costs, and sell products, banks are wrestling with the
emergence of the newest technologies, such as the thin portal, the
proliferation of smartphone features, and social media.
- Today, digital banking services are better optimized for mobile devices
(browsers) or have more mature mobile apps. This maturation drives more users,
as mobile banking becomes more user-friendly, more functional, and more
dedicated to mobile devices, e.g. leveraging geo-location or other mobile
features.
- Having first taken the consumer world by storm, social networking is fast
becoming pervasive in the corporate environment as organizations attempt to
leverage its power both externally and internally. Consequently, the financial
sector, and retail banking in particular, is not immune to the rapid
consumerization of the workplace, and institutions are being compelled to
develop social media strategies to connect with customers, prospects, and
employees.
Features Benefits
- Provides C-level executives' views on current business priorities,
business strategies, and the ability of online banking platforms to support
these.
- Considers the performance of online banking platforms across customer
experience, operational efficiency, innovation, functionality, and agility.
- Breaks down executive views of online and mobile banking across North
America, Asia-Pacific, and Europe.
Questions Answers
- Where are the strongest pain-points with current online banking platforms?
- Do current online banking platforms actually meet changing customer
expectations?
Table of Contents
Headings
SUMMARY
- Catalyst
- Ovum view
- Key messages
- Online banking development mirrors Internet growth
- Digital banking is the center of multichannel distribution
- Banks need to tap into full potential of digital channels
- Online functionality needs to be extended onto mobile devices
- Social media set to drive digital marketing efforts
- Getting a single customer view is fundamental for online sales and
service effectiveness
- Personal financial management will gain its share within online banking
portals
- Online security is key
- Usability and ease of use remain a challenge
- Technology needs to improve user experience
MARKET CONTEXT: Internet is (almost) everywhere
- Internet trends and their impact on online banking services
- The Internet is becoming a natural part of human life
- The impact of broadband connectivity on the consumer experience will be
immense
BUSINESS FOCUS: Online, mobile, social
- Overview
- Digital access is becoming the main channel for banking service
- Online security is key
- Banks need to enrich their online banking portals
- Banks in developed markets focus on enriching functionality
- Mobile access is most needed in emerging markets
- Online banking is the center of multichannel
- Online banking is a new branch
- Branch still is not going away, although its role is changing
- For banks with branch networks, multichannel is a must
- Online functionality needs to be extended onto mobile devices
- Mobile banking en route to maturity
- Mobile banking to become significant channel within three years
- Retail banks have yet to discover the digital-marketing power that social
media offer
- Getting a single customer view is fundamental for digital banking sales
and service effectiveness
- Personal financial management will gain its share within online banking
portals
TECHNOLOGY FOCUS: SECURE, SALES-ORIENTED ONLINE CHANNEL ON MULTIPLE DEVICES
- Overview
- Online and mobile banking investments are on top of CIO agendas
- Digital channels need technology innovations
- Online banking flexibility is highly dependent on core systems
- Well-implemented analytics and communication technology is a must for
successful online selling and servicing
- Interaction management must work in conjunction with analytics
- End-to-end online account origination and speed are needed
- Technology needs to improve user experience
- Mobile services must fit the needs of the addressable markets
- Banks need to manage downloadable versus browser-based mobile banking
investments
- Tablet devices will spur greater use of online banking
RECOMMENDATIONS
- Recommendations for enterprises
- Create single view of the customer
- Embrace the use of social media and integrate your digital channel with
social CRM
- Create a unified online banking experience across browser and app-based
services regardless of device used
- Recommendations for vendors
- Focus on security of your offering
APPENDIX
- Methodology
- Further reading
- Author
- Ovum Consulting
- Disclaimer
Figures
- Figure 1: Internet usage and penetration rates, end of 2Q12
- Figure 2: Total broadband subscriptions by country, as of December 2011
- Figure 3: Investment priorities for online banking platform
- Figure 4: Online banking development stages
- Figure 5: Development plans for mobile banking features
- Figure 6: Mobile banking expectations
- Figure 7: Social media in retail banking
- Figure 8: IT spending plans
- Figure 9: Mobile banking strategy pain points
