Engagement Banking Strategy Backbase Webinar Series January 27, 2010

What is Engagement Banking? For further reading, download our white paper: The Future of Banking is Engagement Banking

© 2011 SapientNitro Today… Thanks:

© 2011 SapientNitro Customer Intimacy Scale and Efficient Operations

© 2011 SapientNitro Customer Intimacy Scale and Efficient Operations Technology

© 2011 SapientNitro Customer Intimacy Scale and Efficient Operations Engagement Banking Technologies

© 2011 SapientNitro Engagement Banking is a new marketing, sales and service model that deploys Technology to achieve both Customer Intimacy and Scale

© 2011 SapientNitro 1.Your ability to collect customer data, turn that data into insight and effectively disseminate that insight 2.The appropriate channels that align with a customer’s convenient behavioral patterns 3.A strong user experience design

© 2011 SapientNitro Banking Technology Marketing Customer Experience Business Environment Consumer Behavior EB Engagement Banking Market Framework

How are customers behaving today?

© 2011 SapientNitro Customers want Digital  Most consumers now touch their bank digitally, and outside the branch network Internet Banking36% ATM15% Mobile 3% Digital54% Source: American Banker Association, Preferred banking method survey, September 2010

© 2011 SapientNitro “Digital” will increasingly mean “mobile” Source: American Banker, Javelin Research, October 2009

© 2011 SapientNitro techny.com Image: Customers rarely set foot into a branch.

© 2011 SapientNitro Cash from the ATM… the one thing they can’t do digitally

But only for a few more months. © 2011 SapientNitro NFC

So, what do consumers want?

© 2011 SapientNitro Consumers want…  Personalized information and content  To connect with the brands they custom, and be valued for it  To have access to their financial information and banking services, 24/7, across multiple channels  To have a problem resolved quickly and for the first time

© 2011 SapientNitro The Four Pillars of Engagement Banking 1.Next Generation Online Banking Experience 2.Multi-channel Client Experience 3.Digital Customer Acquisition 4.Digital Community Development

60% of checking accounts are likely to become unprofitable. The Boston Consulting Group, 2010

Profits are generated in three ways 1. Revenue expansion 2. Increasing asset productivity 3. Cost reduction Engagement Banking powers all three levers

What an Engagement Bank Looks Like

© 2011 SapientNitro Traditional banks are organized around silos Enterprise Services  Corporate  Finance  Treasury  Payments  Operations  Fraud / AML  Technology Product Customer Management  Onboarding  Marketing  Strategy  Analytics Retail / BranchCall Center Alternative ATMOnlineMobile Services OriginationPricing StrategyCompliance, etc. Instruments Deposits / AccountsLending CardsWealth, etc.

© 2011 SapientNitro Engagement Banks are channel-independent  Channels are agnostic, and supported by shared, customer-focused business services  Customer context is delivered throughout the organization Enterprise Services Product Business Model Services Customer Context Branding / Marketing SalesOnboardingRelationship Management / ServicingTransitioning Channels Retail / BranchWebsiteMobileATM / KioskCall Center InstrumentsServices

Customers are already channel- independent Image: peopleseconomics.com

The customer’s journey defines the experience Engagement Banking is about reorganizing traditional banking activities to engage and empower customers through a compelling sales, product or service experience Re-evaluationEngagementInitiationDiscovery

© 2011 SapientNitro Re-evaluationEngagementInitiationDiscovery Triggers Marketing and Brand. Moments of clarity and inspiration of a financial need. Investigation Pre-sales. Initial research into the benefits of a banking brand, products and services… and what the peer network says. Image:

Re-evaluationEngagementInitiationDiscovery Trial Sales activities The customer assesses how a product or brand’s abilities meet their individual needs. Onboarding The traditional onboarding process. Purchase Decision

Re-evaluationEngagementInitiationDiscovery Manage Gain clarity and control, and make transactions to implement change. Understand Make sense of what I’m doing and a plan for what to do next. View View your financial life. Assemble a personal balance sheet to develop a complete picture. Evaluate Continually evaluate how my financial solutions help with my continually changing life.

Re-evaluationEngagementInitiationDiscovery Repositioning Identifying products that are better alternatives than what’s currently implemented Relationship Closure Activities to close or transfer a financial relationship, including account closure and feedback.

Standard Bank Products, Services & Functions Enterprise Services Product InstrumentsServices Engagement Banking Business Framework © 2011 SapientNitro Engagement Bank Customer-centric Services & Functions Business Model Services Customer Context Branding / Marketing SalesOnboardingRelationship Management / ServicingTransitioning Channels Retail / BranchWebsiteMobileATM / KioskCall Center Customer Experience Framework Re-evaluationEngagementInitiationDiscovery

How to Implement Engagement Banking

© 2011 SapientNitro The Four Pillars of Engagement Banking 1.Next Generation Online Banking Experience 2.Multi-channel Client Experience 3.Digital Customer Acquisition 4.Digital Community Development

© 2011 SapientNitro Applying professional-grade data visualization techniques…. Next Generation Online Banking Experience

… can provide financial context to consumers. © 2011 SapientNitro Image: Mint.com

PFM is really about bringing business-class reporting and analysis down the food chain to consumers. Next Generation Online Banking Experience Image: Mint.com

© 2011 SapientNitro Strong User Experience Design across every channel  A design that focuses on the user experience means a different approach to delivering financial information.  Personalization is a major trend in modern design  The most relevant and convenient information, to that person, is allowed to be surfaced and made easily accessible. Most desired information readily available “What’s my account balance?” Visualization to provide context at-a-glance. “How am I doing?” Most recent first, for fast updates… “Did the check clear?” Strong User Experience Design…

© 2011 SapientNitro Source: IDEO … across every channel

© 2011 SapientNitro Multichannel Client Experience SapientNitro Engagement Banking Digital Whitepaper

© 2011 SapientNitro Digital Customer Acquisition Real-time campaign management and adjustments, based on active tracking and monitoring of consumer behaviours

Data-driven Product Development

Data Intelligence in Customer Service and Support

Digital Community Development Image Source: It’s a Wonderful Life, 1946

© 2011 SapientNitro Image Source: jasocal.org

Digital Community through Social Networking Image Source: O’Reilly

Customer Intimacy at Scale © 2011 SapientNitro

Summary

Engagement Banking Market Framework © 2011 SapientNitro Banking Technology Marketing Customer Experience Business Environment Consumer Behavior EB

Standard Bank Products, Services & Functions Enterprise Services Product InstrumentsServices Engagement Banking Business Framework © 2011 SapientNitro Engagement Bank Customer-centric Services & Functions Business Model Services Customer Context Branding / Marketing SalesOnboardingRelationship Management / ServicingTransitioning Channels Retail / BranchWebsiteMobileATM / KioskCall Center Customer Experience Framework Re-evaluationEngagementInitiationDiscovery

© 2011 SapientNitro The Four Pillars of Engagement Banking 1.Next Generation Online Banking Experience 2.Multi-channel Client Experience 3.Digital Customer Acquisition 4.Digital Community Development

About SapientNitro

2009 REVENUE OF US$639M END-TO-END SERVICE OFFERING, WITH COLLABORATIVE AND AGILE APPROACH 2009 REVENUE OF US$639M END-TO-END SERVICE OFFERING, WITH COLLABORATIVE AND AGILE APPROACH FOUNDED IN 1990, PUBLICLY TRADED SINCE 1996 (NASDAQ: SAPE) HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN INDIA 35 OFFICES WORLDWIDE FOUNDED IN 1990, PUBLICLY TRADED SINCE 1996 (NASDAQ: SAPE) HEADQUARTERED IN BOSTON WITH 8500 EMPLOYEES, OVER 5000 IN INDIA 35 OFFICES WORLDWIDE UNIQUE LARGEST INDEPENDENT INTERACTIVE AGENCY IN THE WORLD, with INDUSTRY LEADING STRATEGY & TECHNOLOGY CONULTING UNIQUE LARGEST INDEPENDENT INTERACTIVE AGENCY IN THE WORLD, with INDUSTRY LEADING STRATEGY & TECHNOLOGY CONULTING

© 2011 SapientNitro INSIGHTS Expertise in research, analytics, brand & user experience, wealth management, and global markets IDEAS Ideas born of insights. Our creative department consists of designers, writers, IAs, strategists, account managers and technologists REALIZATION People that can execute on ideas from a customer experience, operational and technical perspective supported by world class program management and collaborative approach S We are Thank You Michael Degnan Engagement Banking Lead SapientNitro Financial Services Center of Excellence #engagementbanking