Webinar Best Practices In Digital Money Management Stephen Walker, Analyst Catherine Graeber, Vice President, Principal Analyst April 10, 2013. Call in at 10:55 a.m. Eastern time

Agenda What is digital money management (DMM)? How can digital teams drive awareness and consideration? How can digital teams encourage usage?

What is digital money management? Definition: a set of integrated online and mobile tools for money management, typically including, but not limited to, account aggregation, automatic spending categorization, budgeting, and goal setting Source: Upcoming “The State Of Digital Money Management” Forrester report

What are the benefits? Source: September 5, 2012, “The Business Case For Personal Financial Management” Forrester report

Who’s offering it? Many of the world’s biggest banks . . . More than 100 new launches in the US alone last year . . . DMM is the founding purpose of many new banks . . . .

Why don’t customers use it? Base: 6,658 US online adults who don’t use money management tools Source: North American Technographics® Financial Services Online Benchmark Recontact Survey, Q3 2012 (US)

How can digital teams drive adoption? Firm’s objectives Awareness Consideration Enrollment Usage Let customers know you offer digital money management. Explain the benefits of digital money management. Make the enrollment process easy. Encourage customers to use digital money management. Source: Upcoming “Best Practices In Digital Money Management” Forrester report

Agenda What is digital money management (DMM)? How can digital teams drive awareness and consideration? How can digital teams encourage usage?

Awareness: guiding principles Start campaigns weeks, if not months, before launch. Don’t market DMM as a separate service. Alert customers through dynamic email campaigns and banners. Use your staff to bring DMM to life.

Awareness: Lloyds TSB links money manager to wider bank branding Image source: Lloyds TSB (http://www.lloydstsb.com/) Campaign across TV, print, and radio.

Awareness: Rabobank and CBA put DMM where customers can see it Image source: Rabobank (https://www.rabobank.com/); Commonwealth Bank of Australia (CBA) (http://www.commbank.com.au/)

Awareness: Linxo uses social media to show the fun side of DMM Image source: Linxo (http://www.linxo.com/)

Consideration: guiding principles Focus on what DMM enables, not DMM itself. Focus on how DMM solves real-life problems. Offer financial checkups online and in-branch.

Consideration: ANZ and PNC focus on real-life stories Image source: PNC Virtual Wallet (https://www.pncvirtualwallet.com/); ANZ (http://www.anz.com/)

SunTrust uses resource centers. Consideration: SunTrust and NatWest offer online education and assessment SunTrust uses resource centers. NatWest uses simple calculators. Image source: SunTrust (https://www.suntrust.com/); NatWest (http://www.natwest.com/)

Consideration: ANZ and ASB offer in-branch assessments What Is Digital Money Management (DMM)? How Can Digital Teams Drive Awareness & Consideration? How Can Digital Teams Encourage Usage?

Agenda What is digital money management (DMM)? How can digital teams drive awareness and consideration? How can digital teams encourage usage?

Firms need to meet customer expectations on three levels Use game mechanics and social features to make it fun. Enjoyable Make it really easy to use. Easy Provide useful, actionable advice. Meets needs Source: Upcoming “Best Practices In Digital Money Management” Forrester report

Question: How do digital teams provide useful, actionable advice?

No. 1: Encourage customers to set up savings goals, — e. g. , Mint No. 1: Encourage customers to set up savings goals, — e.g., Mint.com and SmartyPig Image source: Mint (https://www.mint.com/); SmartyPig (https://www.smartypig.com/)

No. 2: Help customers see ahead — e.g., PNC’s “danger days” Image source: PNC Virtual Wallet (https://www.pncvirtualwallet.com/)

Help customers run “what if” scenarios — e. g Help customers run “what if” scenarios — e.g., Planwise and Strands Finance Image source: Planwise (http://planwise.com/); Strands Finance (http://spf.strands.com/)

No. 3: Use mobile to deliver advice when and where it’s needed

Meniga offers point-of-sale decision support with a social dimension Image source: Meniga (http://www.meniga.com/)

MoneyDesktop’s “GuideMe” app acts as a financial coach or GPS Image source: MoneyDesktop (http://moneydesktop.com/)

No. 4: Use community to generate advice — e.g., UBank and Citibank Image source: UBank (http://www.ubank.com.au/); Citibank (https://online.citibank.com/)

Offer peer-to-peer guidance — Adaptu Image source: Adaptu (https://getsatisfaction.com/adaptu)

No. 5: Notify customers of better offers — e.g., moneyStrands Money-saving tips Personalized product recommendations Image source: moneyStrands (https://money.strands.com/)

Banno’s “Grip” app links offers to point of sale Image source: Banno (http://banno.com/)

Question: How do digital teams make money management easy to use?

No. 1: Prioritize accurate spending categorization Image source: Meniga (http://www.meniga.com/)

No. 2: Integrate tightly into digital banking Image source: BBVA Compass (http://www.bbvacompass.com/); BNP Paribas (http://www.bnpparibas.com/)

Shallow versus deep integration Shallow: integrating as far as the consumer’s eye can see Deep: integrating underlying online and PFM databases

No. 3: Use alerts to help customers stay on track — e.g., Meniga Image source: Meniga (http://www.meniga.com/)

No. 4: Show customers what they want to see — e. g No. 4: Show customers what they want to see — e.g., KeyBank’s “safe to spend” Image source: KeyBank (https://www.key.com/)

Experiment with more intuitive visualizations of spending — e. g Experiment with more intuitive visualizations of spending — e.g., MoneyDesktop’s Bubble Budgets Source: MoneyDesktop (http://moneydesktop.com/)

No. 5: Keep it simple — e.g., IND Group’s Life Stories Image source: IND Group (http://www.indgroup.eu/)

No. 6: Use videos to explain common tasks — e.g., Lloyds TSB Image source: Lloyds TSB (http://www.lloydstsb.com/)

Question: How can digital teams use game and social features to make digital money management fun?

No. 1: Create games out of what is good for customers — e.g., Mint.com Source: January 26, 2012, “Case Study: Mint.com Grows Its Business Using Game Mechanics” Forrester report

PlayMoolah lets kids earn points and prizes through chores Image source: PlayMoolah (http://www.playmoolah.com/)

Meniga uses quizzes to help customers understand their spending Image source: Meniga (http://www.meniga.com/)

No. 2: Encourage customers to share their savings goals — e. g No. 2: Encourage customers to share their savings goals — e.g., ICICI Bank and Payoff.com Image source: ICICI Bank (http://www.icicibank.com/); Payoff.com (https://www.payoff.com/)

Stephen Walker swalker@forrester.com Twitter: @sjbwalker Catherine Graeber cgraeber@forrester.com