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IBM - Lillis Life: Banking Experiences today

Front Office Transformation, Digital Front Office, Transform to a digital world, Lilli´s Life, Enduser Stories

Sathya Hessenkamp

on 18 October 2016

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Transcript of IBM - Lillis Life: Banking Experiences today

The need to transform to a digital world
Banking Experiences today

Additional Information
The main protagonist:

(45 years old)
She is married with
and has 2 children
(19, 21 years old).
Lilli lives with her family in Cologne and she works as a manager. Her job requires a lot of traveling. Lilli uses her mobile devices extensively to have internet access and stay connected.

Government Services

Public Safety

Ongoing, rapid changes in technology have reshaped customer expectations
These changes are not only impacting consumers and enterprises, but also reshaping industries
Lena's semester abroad
credit card & mobile payment
a community ...
social media
partner bank
house bank in Germany
partner bank in U.S.
...containing general information such as locations and availability of ATMs.
payment transactions
location based services
exchange rate risks
Back home Mr. Müller invites Lena to a welcome back meeting at the branch.
Having reviewed Lena's stay abroad Mr. Müller and Lena talk about the next best actions which are identified by analytics solutions.
Lena is thrilled about the individualized offerings and services of her bank and shares her satisfaction via
social media
Lena is enjoying her stay and profiting from her banking app with different functions.
Upon arrival Lena receives a welcome message from the partner bank via email...
Demo 266
App functions
advanced notice
of overdraft
App functions
App functions
Lilli's daughter Lena is preparing her stay abroad in San Diego, U.S. In preparation she has to take care of various financial aspects. Lena is consulting the internet but is quickly overwhelmed by the plethora of information. Therefore, she schedules an appointment with her personal adviser through her bank's homepage and specifies the reason of her session.
When arriving at her bank of choice she is welcomed personally by her adviser Mr. Müller. Through the CRM system Mr. Müller already knows her reason of visit and is prepared accordingly.
analyzing client online behavior to create an exceptional customer experience with IBM Tealeaf
client reference:
@ UniCredit Bank (Demo 2)
At the end of the appointment Lena receives a customized check list for her semester abroad. She is very pleased with the complete service of her bank.
The big day has come. Lena is departing for her new experience...
credit card &
mobile payment
Online Channel Optimization
Returning home...
...resulting in free publicity for the bank. Win - Win.
IBM Social Media Analytics
How does IBM support you providing excellent customer service?
During the counseling session Lena and Mr. Müller talk about various aspects ...
... offered by the house bank to enable the exchange of experiences between like-minded students who are planning a semester abroad
(IBM Portal Exceptional Web Experience)
Lena needs a micro credit for financing daily life of her semester abroad. Mr. Müller develops a suitable offer together with Lena while making use of the
foresee interactive desk.
Mr. Müller facilitates a virtual meeting with Mr. Smith from the partner bank in U.S. via video conferencing so that Lena gets to know her contact person abroad.
Cloud technology for an easy data exchange
comprehensive support and advice during the different phases of Lena's life

results in long-life customer loyalty
Extensive use of tools
Expectations of users
According to the 2013 Fraunhofer study dealing with the Bank of the Future, 67% of the surveyed banks think that
intensifying customer management
is a strategic main topic.

In the light of
decreasing customer loyalty
rising competition
, the following scenario shows how a strong customer loyality could be achieved.

quality of advice
is one of the most significant aspects for sales success.

(Fraunhofer IAO, 2013)
79% attach high or very high importance to
individual solutions for customers
within the framework of customer management.
(Fraunhofer IAO, 2013)
credit card and general information about mobile payment
35 % of the banks consider the
competition with non-banks
as a risk
(Fraunhofer IAO, 2013)
... is one of different confidence-building measures.

Increasing the transparency of the products ...
website optimization with IBM Tealeaf
49 % consider
ongoing development of digital sales channels
as highly important.
(Fraunhofer IAO, 2013)
presence in virtual communities

is not the most relevant issue in the customer management from a bank-perspective.
(Frauenhofer, Bank und Zukunft, page ...)
50 % think that the
accessibility of the bank advisor via different media
is key to effective customer management.
(Frauenhofer IAO, Bank & Zukunft 2013, page 39)
(Fraunhofer IAO, 2013)
(Fraunhofer IAO, 2013)
Through data sharing Mr. Smith gets all relevant information of Lena, for example her credit history as a prerequisite for her credit worthiness.
Security software such as Trusteer blocks malware and phishing attacks and supports regulatory compliance requirements.
25% consider
value-added services
(combination of bank- and non-bank-products) as highly important.

This area offers a great opportunity for innovative and individual services.
(Fraunhofer IAO, 2013)
Social Media
as a medium of internet-based sales is considered more an IT-issue than a sales-topic from the bank perspective.

However, there is a
variety of benefits of Social Media
(digital marketing, bank-customer-interaction etc.)
(Fraunhofer IAO, 2013)
(Fraunhofer IAO, 2013)
Analytics & Big Data
Social Business
86% of the banks consider the
guarantee of security in banking
as highly important.

(Fraunhofer IAO, 2013)
Lena is arriving at her bank.
By the year 2020, an entire generation will have grown up in a primarily
digital world
(Fraunhofer IAO, 2013)
Cloud Computing Services as a trend towards flexibility of IT infrastructure are heavily discussed at C-level.
(experton ICT newsletter 09/2014)
Availability of data and analytics
The Global C-Suite study identified three key themes that will help clients to shape their organization’s future:
• Open up to customer influence
• Pioneer digital-physical innovation
• Craft engaging customer experiences
European banks are racing to capture generation Y and Z. To do so banks need to transform from traditional one-sided customer approaches to
digital interaction
Public Cloud
Private Cloud
Software as a Service (SaaS) on the base of Softlayer
Infrastructure as a Service
Content Analytics
Customer Management
Advanced/ Predictive Analytics
Business Process Management

Smart Cloud
Social Media Analytics
Exceptional Web Experience
Social Collaboration Solutions
Mobile Payment Solutions
(incl. IBM Business Partner mb&m)
Mobile First
(incl. IBM Worklight, IBM's Global Payment Checkout)
In addition to the Cloud, Analytics, Mobile and Social portfolio further IBM solutions complete this scenario:

Regulatory / Compliance
Enterprise Risk Management
Security / Fraud
Information Lifecycle Governance
Legacy Application Transformation

Data Center Optimization
Unica Campaign (Management)
Human Resources Management

Lena gets app notifications about special offers from her bank's cooperation partners - real-time and location based.
Create smarter banking systems

For her study abroad semester, Lilli's daughter Lena needs financial advice. After intensive online research Lena reaches out to her financial adviser to discuss different options.

The story shows different touch points with the bank and ways to offer an excellent 360° service to the customer.
As Lena's bank adviser is already well-prepared for the meeting additional products such as a credit card can be addressed.

The bank cooperates with a partner bank abroad. This offers Lena a smooth transition to the U.S. Abroad she benefits from the banking app functions such as location based services or exchange rate warnings.

At her return, Lena's bank welcomes her back and discusses next best actions. Lena is satisfied with her banking experience and shares her praise online. With such a complete service the bank ensures satisfaction and long-life loyalty of their customers.
Made by IBM Deutschland GmbH© 2015
On every device - seamless & easy
(Fraunhofer IAO, 2013)
(Fraunhofer IAO, 2013)
(The Customer-activated Enterprise Insights from the Global C-suite Study, 2013)
Smarter Banking
Lilli & Nick
Who is Nick?
Lilli's husband
successful career
intensive use of smartphones
opinion of his social environment is very important to him
Nick wants to:
save taxes
invest money (value enhancing)

Perspective of Nick's home bank:
interesting, valuable customer
BUT: there is a risk, that Nick could change the bank
demanding customer
Online Banking
Comparison Portal:
"Customer Compass"
A mobile app
"Customer Compass"
is available
Nick hasn't used the app for several days.

With regard to his preferences he receives a
from his bank

Online offer for investment regarding his risk profile
completion of the investment offering
invitation for real estate consulting in the banking branch
virtual and physical consulting
video conference
with an expert for real estates
Nick is
with the services
word of mouth recommendations
his wife
his friends and colleagues
social media recommendation
posts the excellent customer experience of Nick on facebook
Web & Social Analytics
Customer Segmentation
Web Experience Management
Integrated Call Center
The Change of the Identification Service
What Lilli likes:
The bank offers a new comfortable way of customer experience
without media breaks.

bank meets the customers expectation
solutions for account openings.

This solution meets all requirements of the
and all data is encrypted and securely transmitted.
How does the identification process work?
Lilli will be identified by her passport.

For that she uses the camera of her mobile device.
Lilli is very happy. She posts her great experience with the bank on Twitter! What a great solution for the customer and the bank.
How does IBM support you providing this up-to-date customer service?
IBM Cloud Solutions - Software as a Service
as a basis for implementing the identification process
IBM Solutions
Lilli communicates across various channels, platforms, and devices.

At home she uses her iPad, on the move her iPhone, while
driving her smart auto interactive device and at work her desktop. Today’s tech-savvy consumer communicates using a wide variety of devices, and OFN ensures they can address Lilli on every channel.
Question is - How do you communicate with your customers?
1. Engage Customers
on social media networks
on mobile apps
on the internet
2. Make the experience exceptional
engage users
make it personal, understand what they want
no matter what device
Make this possible - 1. Using Powerful web content management, 2. predictive analytics and
3. responsive design
Lilli expects to receive timely, relevant offers and personalized service.
Recognize patterns and trends in customer needs...
Deliver clear and consistent brand messages.
Empower and engage customers in personal banking experiences.
Address customer comments and concerns where they are voiced.
IBM Solutions made it possible not just for Open Financial Network!
But also for. . .
With so many options in today’s marketplace, OFN has acquired the ability to decipher and use vast amounts of data in real time to meet the specific needs of Lilli
How do you deliver the right offers at the right time via the right channel?
You need the ability to decipher and use vast amounts of data to meet the specific needs of your customers.
1. Embrace social media to become a social business
Participate, Listen and Respond
Custom experience fit to each user

2. Obtain a 360° view of the customer
Customer expectations are changing constantly
What products they own, are they satisfied
How long they have been with you

3. Messaging needs to be Relevant, Interesting and
Branding needs to be consistent across
Right information at the right time

This can be achieved with the right mix of -
1. Web Analytics
2. Predictive Analytics
3. Social Analytics
Nick is open:
to offerings from his current bank
to consider offerings from other banks
Beside her job Lilli works voluntarily for a small charity which helps children in Africa. Currently she and her team collect money in order to support a new primary school there.
Some other services that Lilli likes quite a lot as a service of her bank:
The bank offers local based services with other business partners
Value for Banks - Value for Customers
Advantages of APIs for Banking

Reduce time to market for its mobile offering
Partners are provided with the means to innovate faster and the clients benefit due to an increased mobile offering
New options to extend the customer base, keep customers

APIs for Banking
Customers will leave their banks due to unsatisfactory mobile offerings.

Due to Customer Expectations Banks need to act in order to avoid losing market share.

Digitisation is the key - and Web APIs will help

Some ideas to show possible ways about the transformation to a digital world
Access personal data
View bank accounts
Access and create transactions
Overview about the balance
Crowdfunding - collect money socially
He checks the balance on his glasses and issue voice instruction to transfer money to his father's account.
Nick steps out for checking out the new city.
Nick visits the electronic shop and tries out the new device.
Customer experience with banking will drastically change
He submits the loan application to the bank on his mobile. Bank processes the loan quickly.

The bank also contacts one of its partners for home insurance.

All documents are sent electronically, the insurer completes it without Nick visiting the office.
The intro gives some general facts about the need to transform to a digital world in order to achieve customer experiences.

Leaders are putting Big Data & Analytics, Social, Mobile & Cloud into action to get best results in this new competitive field.

Nick is traveling oversea for a project. He completes a video conference on mobile Skype with his bank's relationship manager to finalize purchase of property and mortgage.
Lilli actively uses social media to keep herself informed. She likes using Facebook to get recommendations from friends . She keeps up with the latest business trends on LinkedIn and frequently uses Twitter to share and hear opinions for trending topics. In order for OFN to stay competitive, it adapts to market forces and quickly grows its service offerings.
How do you make customer insights actionable?
1. Integrate information from different data sources to drive the
business through deeper consumer insight

2. Understand emerging consumer trends and apply predictive
models to determine actions with the highest probability to
increase relevance and maximize ROI of marketing campaigns

3. Listening is a starting point. But to differentiate and be
the best you must be able to monetize your investments

Social Media Analytics can help organizations discover
hidden trends and topics that common social media searches miss

Making customer insights actionable
Lilli is a globetrotter and is on the move! She expects her interactions on the web to be consistent no matter where she is, to allow her continuity. OFN's message is told through every interaction and touchpoint with Lilli, and it ensures that every message is positive and clear.
How do you tell compelling brand stories that resonate with your audience?
1. Less daunting for customers to find
what they need

2. Content is King - deployment on
the widest variety of devices,
starting with the design for the
smallest space first

3. Optimal viewing experience across
all touch points
WebSphere Portal and Web Content
Manager software make this possible
Lilli expresses happiness, as well as unsatisfying experiences by posting pictures, writing comments, leaving reviews or suggesting what her friends should try out / not try. Lilli is also a loyal customer, when given a personal experience. For example Lillis bank understood that her daughter is flying abroad for studies and provided her offers suited to her need.
How do you address customer comments rapidly?
How do you encourage your customers to proactively engage with your enterprise?
Mobile Apps
Manage the Digital Brand
Virtual Consulting
Who is Lilli?
opinion of her social environment is very important to her
open for recommendations from friends and family
intensive use of her smartphone and social media
Lilli wants:
a new bank account
good services via different channels
customer insight
Lilli is open:
to consider offerings from other banks
Lilli from a bank perspective:
potential new customer
contact point via her husband
thinks about changing the bank
post on facebook about the satisfaction of Nick (her husband) with the service of his home bank
she also shares that she is looking for a new bank account
facebook banner
advertising of Nicks home bank
Lilli opens the facebook banner and is led to the website of the bank
she is contacted by the
banking online chat
while she is researching on the website
further advices and individualized offerings
completion of the contract (bank account)
registration and affinity towards communication channels
tweet about her satisfaction with her new bank
intensive use of the self service app
customers canvass customers
word of mouth


Nick uses the app at the airport
and updates his
risk profile
Abrupt closing of the app due to his flight
IBM Smarter Banking Solutions
This transformation requires the activation of a digital front office

The emergence of social, mobile, big data & analytics and cloud is fundamentally changing how we live, work and interact.
1. Develop a customer-driven enterprise
Leverage digital, mobile and social insights to spot growth opportunities and new paths to value

2. Cultivate customer insights
Create tools and techniques to dynamically understand needs and apply personalization
3. Build systems of engagement
Orchestrate continuous customer interactions to optimize engagements and build advocacy
Lilli often becomes a challenge and also provides opportunities that can arise anywhere and at any moment; OFN are aware of this and are ready to respond immediately
Have an information-led transformation
In a competitive landscape that favors the fastest and the smartest,
financial services firms that invest in building sophisticated insight and predictive analytics will be better positioned to emerge as market leaders.

Forward thinking banks will use this strategic insight driver to:

1. Attract and retain customers
2. Develop new sources of revenue
3. Streamline operations
4. Proactively address risk and regulatory requirements
These changes are not only impacting consumers and enterprises, but also reshaping industries
Organizations are changing both:

” they offer and “
” they operate.

Why IBM ?

Our network of experts
and resources is truly global.

Cloud – Analytics – Mobile – Social
The digital transformation forces





Big data


Source: IBM IBV
Heike Müller

IBM Deutschland MBS GmbH
IBM Sales & Distribution, Marketing
Market Segment Manager Industry Marketing

Email: DEHEIKEM@de.ibm.com
The ongoing, rapid changes in technology
have reshaped customer expectations
400 million
number of tweets sent using Twitter each day
1 million
websites have integrated with Facebook
consumers use multiple channels
of mobile users keep their device with in arm's reach
of the time
1 in 4
minutes online is on social media
of users check Facebook
5 times
or more daily
of senior executives believe customer experience is the next competitive background
of the data in the world today has been created in the last
years alone
Source: IBM IBV
For further questions please contact your sales partner or consultant.

If this is not possible, you can also contact:
A set of digital transformation drivers...
Mobile Revolution
Connectivity, access and participation of people and things are growing rapidly; Mobile internet and smart devices are exploding
Changing the way that individuals and organizations engage, interact and collaborate
Social Media Explosion
Digital content is being produced and accessed more quickly than ever before, causing growth in digitised industries, markets & segments
New opportunities for real time analysis and predictive analytics creating business insights from more and more data
Power of Analytics
... is impacting all levels of society!
The connected consumer
The networked workforce
The empowered citizens
Value migration
Industry redefinition
Evolved business models
Optimized digital operations
Connected enterprises

Digital Transformation - More facts and details
Open Financial Network (OFN) wants to improve customer engagement by providing real value to its customers at every interaction point.
Lets see how Open Financial Network (OFN) handles one of its customers - Lilli
First Tennessee Bank
BNP Paribas
Royal Bank of Canada
Nick uses online banking for most of his banking.
The bank wants to offer him some special offers. He gets a link to the landing page of the "Customer Compass"
All information are saved
Lilly wants to open a new account. Her bank offers a new way of identification.

Video Identification
As a busy woman Lilli likes that idea

Special offer to customers of X-Bank:
Get 15% discount on all items
He checks his account and confirms that the bank has setup electronic debit for his loan deductions in the first week of every month.
Lilli wants to thank the people for their donations .... With the API her bank offers she is able to create an automated job for that:
Lilli opens her bank app and gets some information about things she can do:
If a new transaction is incoming for the charity an automated "thank you post" will be tweeted by Twitter
Nick is happy that his bank handled all formalities and was able to complete the property purchase before his travel.
The first weekend on his travel, Nick logs into his bank account using his glasses.
He calls his father to inform him how to confirm that he has received it.
Final things to organize
Exploring the new City
As he enters a shopping mall, his banking app picks up two offers from electronic shops (based on his previous searches for a new smartphone.
His bank offers him a loan option based on his profile.
His bank also offers him enhanced benefits on his loyalty program due to local festivities. He opts for a personal loan and transfers it to his mobile wallet through which he pays for the new device.
Happy with the new device he enjoys the rest of the day
He shares his experience on his social network
She creates:
Thanks @Name for the donation
Text message that salary arrives
Automatically investing spare cash
Advanced notice about overdrafts
She doesn't need to consider opening hours in order to verify her identification and spends the time with her friends.
Within a video/audio session the agent takes all information that will be needed for identification.

A TAN will be sent to Lilli. She has to confirm the process and information with the TAN and the identification can be finalized.

How does Smarter Banking work?
1. Basis of Smarter Banking: comprehensive
customer insight
could result in:
Facts, a bank should know about its customer:
phase of life
favorite communication channel
affinity towards Social Media
risk affinity
Through consideration of the client profile a comprehensive service is possible

(individualized offerings,
services via favorite communication channel)
2a) customer satisfaction
2b) customer loyalty
2c) new customer acquisition
(via positive word of mouth recommendations)
Smarter Banking
Full transcript