1. to Redefine ‘Personal’ Banking
How to Use Alerts
to Redefine ‘Personal’ Banking
Mobey Forum
Las Vegas
May 7, 2014
Mark Schwanhausser
Be a Mobile Strategist, Not Just a Tactician
The American consumers' appetite for monitoring and managing their finances on mobile devices is not just a desire, it is an expectation. Mark Schwanhausser, Javelin Strategy's director of omnichannel financial services, will demonstrate in this interactive conversation that today's highly profitable but demanding mobile-oriented Moneyhawks™ seemingly want it all. Monitoring and moving money. Paying bills. On-the-go personal finance insight and advice. Trust-building, proactive financial alerts. Real-time fraud detection. Mobile payments. Services that exploit only-in-a-smartphone technology like the camera, geolocation, and biometrics. And more. This extensive wish list places great urgency on your need to develop a broad ROI-based, mobile-driven omnichannel strategy -- not just tactical moves -- that will enable you to provide customers with an unparalleled sense of financial control. Do it right, and your institution will become the primary place customers turn when they think about their money.
Director
Omnichannel Financial Services

2. Why Mobile Alerts Are Critical to Your Omnichannel Strategy

3. Financial Alerts Provide an Interlocking ROI
Deeper Engagement Leads to Primary-FI Status
Target customers such as Moneyhawks™, women
Add digital customers
Top-of-wallet status for debit, credit products
Expedited payments
Cross-sell opportunities
Proactive customer interaction
Greater trust in your FI and digital banking
Higher satisfaction with digital channels
Reduced churn
Mass-market adoption of self-service channels
Paper turnoff
Fraud detection and prevention

4. Redefine Personal Banking By Knowing Starting Proactive Conversations
Today
Tomorrow
How can I help you?
Did you know that…?

5. Redefine Personal Security By Empowering Mobile Monitoring and Detection
Deputize your customers.
Shift the focus
to prevention, not just detection and resolution.

6. Today’s Alerts Conundrum: High Value, High Need -- But They Often Fall Short

7. Alerts Can Serve as Your Customers’ Financial Nervous System

8. Alerts Can Improve Service Across Business Lines, Initiatives
Monitoring and managing money
Account opening
And onboarding
Credit cards, loans,
collections
Digital engagement,
and paper turn-off

9. 7 Flaws With Alerts Today
They’re not useful enough.
They’re too difficult to set up and tailor.
They’re not timely enough.
They’re not actionable enough.
They’re not woven into everything an FI does.
They’re poorly marketed.
They’re not safe enough.

10. What Alerts Do Consumers Want Most?

11. Appetite for Alerts Is Expanding From Security to Personal Finance
Extremely/Very Valuable Financial Alerts (All Consumers)

12. 1 in 3 Consumers Highly Values All Five Alerts in Tier 1
Perceived Value of Tier 1 Alerts

13. Moneyhawks™ Are Your Most Profitable and Influential Customers
Segmentation Measures Behavior at Primary FI
Active users of services that deepen engagement
Online banking*
Bill Pay*
Mobile banking**
*Past 30 days
**Past 90 days

14. Moneyhawks™ Monitor and Manage Their Money More Actively – and Prefer Cost-Effective Channels
Behavior in the Past Week
84% log into online banking
81% monitor balances online.
73% review transactions.
59% use mobile banking.
55% pay a bill at primary FI.
47% made and ATM withdrawal.
36% transferred funds online.
30% mobile bill payment at PFI.
20% transferred funds to outside accounts.

15. Priority No. 1: Target the Moneyhawks™
Extremely/Very Valuable Financial Alerts (Moneyhawks™)
Moneyhawks value all 20 alerts
7 to 13 points higher than consumers overall
They value security and personal finance alerts

16. Tailor Alerts to Fit Your Target Audiences
Extremely/Very Valuable Financial Alerts
Online Banking Loyalists
Security alerts can introduce them to mobile banking, mobile monitoring
Gen Y.2 (age 25-35)
They’re hungry for personal finance alerts and will be among the first to use shopping/rewards alerts

17. How to Use Alerts to Redefine Personal Banking

18. 3 Ways to Boost the ROI of Alerts
How can I help you?
Shift from reactive to proactive
Use alerts as conversation starters
Build trust with PFM alerts
Refine tactics
Break the bonds of ‘if/then’ alerts
Opt out – not in
Invest in technology
Upgrade the alerts you already have
Exploit push notifications
Did you know that…?

19. 5 Ways to Make Alerts More Powerful
Tailor alerts using data mining and predictive analytics.
Broaden the conversation from security to personal finance.
Power alerts with real-time information.
Make it easy to take action.
Drive interaction to the most effective channel or services.

20. Deepen Interaction and Trust With Personal Finance Alerts
Javelin’s Hierarchy of PFM-Powered Financial Alerts

21. How to Use Alerts to Redefine ‘Personal’ Banking
Thank You
How to Use Alerts to Redefine ‘Personal’ Banking
Javelin Strategy & Research, a division of Greenwich Associates, provides strategic
insights into customer transactions, increasing
sustainable profits for financial institutions,
government, payments companies, merchants
and other technology providers.
Thank you for participating!
Any questions?
Mark Schwanhausser
Director
Omnichannel Financial Services