Everyday Bank Blog

What will make consumers fall in love with peer-to-peer digital payments?

Forty-six percent of consumers have already used peer-to-peer (P2P) payments, according to our recent 2015 North America Consumer Payments Survey. As adoption and usage trends evolve in the coming years, what forces will influence more widespread consumer preference for P2P payments?

Forces to watch

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View the image.

None of us has a crystal ball into the future of P2P payments. However, we can assume that technology advances will play a significant role considering the rapid-fire pace of digital innovation. In such a disrupted competitive landscape, there’s also the potential that the next breakthrough may come from a provider that is not on the radar—yet.

In such a dynamic environment, it’s hard to know where to place your future bets. However, based on trends in play today—and on P2P success stories in other markets—I expect three significant forces to have a strong influence on P2P payments adoption:

1. Millennials are P2P payments pioneers

This force is more about the “who” than it is about the “what.” Trends in Millennials’ use of digital payments instruments continue to characterize this demographic as digital payments early adopters.

Across the board, 18 to 34 year old “digital natives” have an affinity for non-traditional payments instruments. This holds true of P2P mobile applications too. According to our survey, Millennials are 4 percentage points more likely to make P2P payments than other demographic groups combined. Considering Millennials’ economic power and prime position as movers of today’s always-on culture, they have the “gravitas” to be trendsetters here.

2. Social media is a viral engine for P2P payments

Social media and P2P payments have something fundamental in common—person-to-person sharing. Case in point: PayPal Inc.’s Venmo merges social media conversation and payments transactions. Consumers are intrigued. Consider that Venmo processed $1.6 billion in payments in Q2 2015, and it only launched in 2013.

Venmo users can post social style messages alongside their transactions. This has an appeal for Millennials who constantly document both the mundane and the milestones on social channels. Many love the social aspect of money, and they compete to write the wittiest descriptions of their transactions. Because it happens among “friends,” the viral quality of the intersection of social media and P2P payments can build awareness and reduce the perception of risk.

3. Easy and seamless are non-negotiable in P2P payments

Our payments survey reveals that consumers are hungry for simple, personal and everyday payments experiences that mesh with their lives. This value proposition fueled the success of P2P payments in Denmark.

In 2013, Danske Bank launched the MobilePay app, which provides a simple way to transfer money, including both person-to-person and merchant payments. Just two years later, the app has an extraordinary two million users in a country with a population of 5.5 million people. The fact that the app is ubiquitous—open to both Danske Bank users and other banks’ customers—and very easy to use fueled interest and adoption.

Making a love connection

For now, the P2P payments market in this country is largely controlled by non-traditional players that are not bound by behemoth core infrastructures, complex processes and regulatory limitations. But the longer that traditional players wait, the harder it will be to capture consumer mindshare in P2P digital payments.

Learn more about Accenture’s latest consumer digital payments survey.

Digital payments: A sweet spot for Millennials

Every industry is scrambling to capture Millennial mindshare, and retail banking is no exception.

Consider the sheer numbers and earning power of 18 to 34 year olds. Millennials now officially outnumber Generation Xers in the US labor force, according to the Pew Research Center.

Millennials and Money

But just how digital are Millennials? In recent months, Accenture research has revealed insights to help answer this question for the banking industry.

You may recall that results of our 2015 North America Consumer Digital Banking Survey offered some surprises. We learned that while banking through digital channels is important to them, more than a quarter of Millennials expect to use the bank branch more by 2020. The message to banks is to see digital as a catalyst, not as an end-all-be-all to connect with Millennials.

The Appeal of Digital Payments

Recently published results of our 2015 North America Consumer Payments Survey—a multi-year survey of over 4,000 consumers in the United States and Canada—tell a different story when it comes to Millennials and payments.

Millennials have not abandoned traditional payment instruments. Sixty-six percent use cash today. However, only 53 percent expect to use it in 2020—that’s five percentage points less than the projected future use of all survey respondents combined.

Moreover, Millennials have a clear affinity for digital payments. Just like last year, they continue to be change drivers and first movers in all digital payments areas when compared to other demographic groups as this table reveals:

View the image.

View the image.

Open to Digital Evolution

These insights offer an interesting perspective into the Millennial mindset related to digital payments. For example, Millennials are 6 percentage points more likely than other groups to use PayPal, Inc. in 2020. They are also 6 percentage points more likely to be interested in connected commerce. This is the ability to make payments via objects with Internet connectivity—anything from wearables to appliances and cars.

Strong Millennial interest in both a “traditional” digital payment option like PayPal and in an “emerging” digital payment option like wearables suggests that this generation does not view digital with tunnel vision. They are open to a variety of options.

Millennials’ openness to change and innovation is something that the industry should not forget. After all, Millennials are digital natives. Having grown up with digital, they know expect technology to be ever evolving and to cater to their needs.

The challenge for the industry is to understand what will influence Millennials to choose from among various digital payments options? Will it be convenience? Customer experience? Cool functionality? Something else? Answers to questions like these will help providers find Millennials’ true digital payments sweet spot.

Learn more about Accenture’s latest consumer digital payments survey.

Real-time payments: bold decisions to stay relevant and competitive

At last week’s panel session hosted by Accenture at Sibos 2015, six experts from different perspectives and regions shared their thoughts on real-time payments.

Let’s start with the UK which is the gold standard for real-time payments. The emphasis on consumer-centricity and the customer proposition was the key message for the packed audience from Graeme Donald from Lloyds and Craig Tillotson from UK Faster Payments.

Graeme Donald highlighted that as real-time payments services mature, likewise do customer expectations. Today, nothing less than 24 hours a day and 7 days a week real-time payments underscored by real-time banking will do.

Craig Tillotson added that more financial institutions need to have direct access to the real-time payments infrastructure, while ensuring the security of the ecosystem. The key to realizing this is a competitive layer of aggregators, who can aggregate the demand for a large number of smaller banks, as well as handle the technical complexities on behalf of these banks.

Most markets and countries implementing real-time payments programs will go through the same stages of maturity, but time scales have been drastically compressed. While earlier entrants such as the UK may have had seven years to evolve, in contrast, those considering real-time payments programs now will probably have only one to two years to launch to be relevant; and when they launch they can expect dramatic volume growth, as experienced this year in Denmark which launched at the end of 2014.

Australia is in the midst of building its New Payments Platform (NPP). Banks there believe that it is crucial to position the platform as a means to help their customers achieve their business goals.

To bring the customer experience-focus to life, Philip Joyce from Westpac highlighted three factors to differentiate one from one’s rivals: how well you understand your customers’ problems, how you differ from your rivals and how you integrate your differentiation factors into your offerings.

As tough as it is to see additional revenue from real-time payments, the business case is really about remaining relevant to customers through overlay services.

Stig Korsgaard from Nets Denmark added that the good governance in the country, coupled with strong commitment from banks, central banks and other players ensured a speedy process of implementation. It’s a one for all and all for one mentality that underscores a universal recognition of the importance to be connected.

The Danish program was also facilitated by the support made available to banks (such as onboarding and clear pass-through steps), clear division of responsibilities, and agreement to utilize existing capabilities that banks have such as web services. All of this translated into an investment experience that was manageable for all banks.

Read the report.

Read the report.

In the US, Sean Rodriguez from Federal Reserve reinforced that they have found that overlay services is extremely important to both strategy and business, so much so that while the infrastructure is key, it is nothing without the services layer. Rodriguez added that with the existence of different models, settlement and clearing of real-time payments did not necessarily need to happen at the same time.

Multi-stakeholder engagement is critical and it should cover as many relevant parties as possible – such as end users and non-bank providers.

Paolo Cederle from UniCredit advised banks to focus on local real-time payments’ implementation but to also monitor global developments in order to to facilitate future interoperability.

Cederle summed it up nicely: the defining characteristic is service and customer experience. All payments have to be faster and banks need to make bold decisions such as adopting new technologies to stay relevant and competitive.

Real-time payments were widely discussed throughout the week at Sibos and are clearly a strategic theme for the industry – feedback from the audience confirmed that this panel concisely articulated the key points and insights on the benefits and challenges of real-time payments. You can see a replay of the session at www.accenture.com/siboslive  and read Accenture’s own insights by downloading our Real-Time Payments for Real-Time Banking paper, and the Executive Guide to Immediate/Real-Time Payments.

Placing real-time payments at the heart of the digital economy

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Read the report.

The world of payments continues to face tremendous challenges and transformation primarily driven by technology and regulation. Think digital wallet versus paying cash, and what’s more how the digital wallet has evolved. But that’s just one part of a picture that is transforming the way consumers spend and pay.

APIs can potentially change how we work, play and spend. They can allow consumers to make payments and do their banking outside the banking environment in third party apps, for example a department store app. Third parties can design apps to their own requirements and embed APIs in them to tailor the customer experience to how they want it to be.

With APIs for real-time payments and real-time balance updates, the real change is how consumers adopt new real-time payment technology and how businesses understand and create value from rapidly changing customer behavior.

The macro-economic environment and the technological momentum in our world offer businesses and banks not a spare moment to waver. E-commerce and M-commerce around the world is booming and by the end of 2015, mobile commerce sales are projected to hit US$132 billion in Europe and the US, growing at 25% per year. Asia is another potential hotspot as well.

For a sense of the potential, to date, the UK has the most advanced real-time payments systems, with over one billion transactions per year, but this barely includes any transactions from P2P, ecommerce or mcommerce.

As these uses take off, UK real-time payments could easily double or even triple in the next five years. This is only one market in question. Another example is the spectacular growth of Venmo over the past two years (reaching $1.6bn in Q2 2015), a US real-time payment overlay service. This shows the demand for real-time P2P payments and the potent combination of payments with social media.

Capitalizing on such growth requires, in tandem, real-time payment systems that are efficient and trusted by consumers.

Based on Accenture analysis, more than 50% of payment revenues are at risk – 35% in interchange fees, and other innovations from non-banks such as e-wallets and ApplePay which can affect the remaining 15%.

The growth of online transactions and the greater potential with the widening Internet of Things are driving banks to understand the situation better, to cautiously overcome change while ensuring they minimize business risks. Banks are hungry to find revenue sources such as from overlay services, to reap more revenue from real-time payments – one path is to develop P2P real-time payment services, monetizing them by expanding them to ecommerce and mcommerce.

Real-time payments are core to the digital economy – a broad ecosystem that is underscored by a connected economy – from almost everything we do at home, to our healthcare providers, to manufacturers whose goods we purchase from, to the cars we drive.

And each one is a point where payments can potentially be initiated from, for example from electricity meters, road sensors, even delivery drones. Because of that, digital commerce demands 24 hours a day and 7 days a week real-time payments – real-time in availability of funds to complete transactions and real-time confirmation, in milliseconds end-to-end, that funds have been transferred and received.

This is a complex ecosystem, involving not just devices but applications. Banks have to connect bank accounts, digitally-enable them to make payments, at any point in the ecosystem through any device. If banks are not enabled in the digital economy, others will step in – and are already doing so, Venmo for example is owned by PayPal – relegating bank accounts into “dumb” accounts to feed the digitally enable accounts of others.  Banks will lose direct connection and a daily point of interaction with their customers.

With the onslaught of such competition, banks have to realize they should not aim to own the entire set of innovation in the payments space, but shift their mindset to collaborate with new innovative players.

With this vast potential to be reaped, banks should move beyond the humble bank account and experiment with new payment propositions, including the internet of things, to remain at the center of payments in the digital economy.

To learn more about Accenture’s view on this topic, read “Real-time payments for real-time banks

There’s no agile bank without agile leadership: How to win in the digital banking era

Change is non-negotiable for retail banks to thrive in the digital banking era. But meaningful change cannot happen without leaders who are willing to change too.

This is especially true for the agile bank—a disruptive retail bank that is customer focused, market driven and proactive. A 180-degree departure from the traditional full service bank, the agile bank trades an inside-out focus for an outside-in obsession. And not surprisingly, the most effective leader for this dramatic evolution is the agile leader.

New Ways to Lead

Accenture research defines three pillars of leadership. These include vision and strategy, relationships and execution. As my Accenture colleagues have discussed, the agile leader has distinct—and even surprising—traits and behaviors across each of these areas:

1. Vision and Strategy

Becoming an agile bank is an evolution for most retail banks. The evolution is most successful when it is a journey in response to a guiding vision set by an agile leader. What’s unique about the agile leader’s vision is that it acknowledges—even embraces—uncertainty. Agile leaders see uncertainty as a threat and a challenge. They understand that they cannot know everything today about what tomorrow holds. What they do know is that change is a given—maybe a dead end, or maybe a door. Either way, agile leaders factor in change to the vision without fear.

2. Relationships

The agile leader builds relationships within the organization and with partners and stakeholders. The agile leader is never a despot, and is masterful at delegation. By giving “deputies” the authority to act with real decision power and without going through the typical multi-layered approval processes, the agile leader nurtures a faster speed to market. This fast-twitch speed is critical for the bank to seize on market opportunity and consumer desires. Empowerment and fostering leadership at all levels are hallmarks of effective agile bank leaders.

3. Execution

The agile leader champions a very different way of working. Rather than spend months perfecting a new market offering, the agile bank uses iterative development methods and customer feedback loops to refine ideas in real time with real customers. The agile leader does not chase perfection before greenlighting new ideas. He or she recognizes that perfect is the enemy of the good. As such, the agile leader develops a culture and way of working where informed but fast decision making is the new normal. Delivering with scale, buy-in and accountability while developing internal staff are priorities for the agile leader.

Change Starts with an Agile Leader

These characteristics clearly suggest that the agile leader is a unique breed. And what’s more, the agile leader will play a make-it-or-break-it role in the future of the agile bank.

If you are thinking about your bank’s digital banking future, I encourage you read more about the agile bank and get more insights into leadership imperatives for the agile business.

Payments solutions top the Sibos 2015 agenda

Sibos 2015 is almost here and as Singapore beckons, Accenture is preparing for an eventful week.

Key themes we expect to dominate Sibos are real-time, or immediate payments, PSD2 for the European banks and distributed consensus ledgers, with Ripple and its cross-border payments solution making waves.

Immediate payments are a big theme in Europe and the USA, with Australia in the middle of a programme, run by SWIFT to introduce them in 2017 and Singapore now live with the FAST system for 18 months. It is becoming clear that immediate payments will become pervasive and will dominate mass retail and corporate payments everywhere; the race is on for banks to transform their IT and operations to enable immediate payments and to develop new payments and payment account propositions for their customers.

PSD2 is European regulation, with immediate implications for European banks, but its effect is likely to be felt globally. Not just because regulators around the world tend to feed off each other with new regulations, but also because it will catalyse the development of a new payments ecosystem for the digital economy. In particular, it will enable new types of payment providers, allowing third parties access to account information and the right to initiate payments, requiring banks to expose their payment systems through APIs. This has major security and liability implications that banks need to address, compounded by other PSD2 requirements to enhance the security of online payments. The PSD2 has additional requirements to improve the original PSD, as well as the interchange caps for cards transactions. With the PSD2, European banks face both a compliance challenge and an opportunity to reinvent themselves for the digital economy that will dominate their payment plans and investments for the next three years at least.

Sibos 2014 in Boston was the point when the banking community started to accept that there is more to distributed consensus ledgers than Bitcoin, and that the technology has the potential to dramatically improve the efficiency of financial markets, taking out layers of intermediaries and gatekeepers. Since then, there has been considerable investment in the technology, by both banks and VCs.  The technology remains immature, and the industry is still in a discovery phase, but expect in Singapore to hear a lot more on how it is being developed for industrial use in capital markets and in payments. In particular, we expect Ripple, an Accenture alliance partner to receive a lot of attention for its cross-border, international payments solution.

Again this year, Accenture has a booth (I38) at Sibos. We will have on hand over twenty senior executives from across our global Financial Services business to meet with you and discuss your needs, including payments-as-a-service solutions, immediate payments, PSD2, corporate payments and distributed ledgers. On Tuesday 13th October at 12.15 pm we are holding an Open Theatre presentation on “Placing real-time payments at the heart of the digital economy” and will continue the theme at our lunch time panel on Wednesday 14th October with industry experts discussing how to architect real-time payment business and technology models for business value. At the booth we will have demos of our distributed commerce platform for mobile payments, of distributed ledger solutions running on our private blockchain, and of the Ripple solution for correspondent banking together with our alliance partner, Ripple.  If you’d like to meet with me or one of my Accenture colleagues while you are here, please let me know.

See you in Singapore!

P.S.  If you are not attending Sibos but are interested in participating in our lunch panel on real-time payments, you can register to watch a live broadcast of the discussion and get involved in the conversation via Twitter using #SibosLive

Find the speed you need: How the agile bank fast tracks market responsiveness

Speed is critical for retail banks that want to master digital disruption.

In the digital banking era, change happens nearly instantaneously. New competitors enter the market quickly. Industry boundaries are redrawn in a flash. Tomorrow’s technologies emerge even before banks can implement today’s. Fast as we know it is no longer fast enough.

Big Changes Ahead

Large incumbent banks face big challenges in this fast-twitch digital banking environment. They know that quick market responsiveness is a given for them to compete.

Speed is not an option unless retail banks change how they operate. They must eliminate the headwinds created by large physical distribution networks, intricate processes, legacy core banking systems and complex governance structures.

Yet with these elements ingrained in how traditional full service banks have operated for years, this is not only a high-stakes proposition; it is also a difficult one.

Up to Speed on Speed

As my Accenture colleagues have discussed, retail banks must consider two distinct kinds of speed when developing their digital banking strategies. They need disruptive speed to drive business growth and transformational speed in the core business of banking.

Time for the Agile Bank

Retail banking is seeing a dynamic distribution and marketing model that can deliver this essential disruptive speed. The agile bank is radically different—and it can help banks get the speed they need.

The agile bank expands and contracts the distribution model in response to a granular understanding of market demand, making channel decisions quickly and frequently. Essentially, markets drive change, and it happens often and fast.

View the image.

View the image.

There are several strategic and operational elements that position the agile bank to fast forward market responsiveness:

  • Fast product development. Agile banks release a product to a high-priority market quickly, rather than after months of analysis. Dynamic market forces and customer feedback loops shape the product.
  • Data, data and more data. Agile banks start from the outside in by analyzing and tracking customer behaviors and patterns. It’s about giving customers what they want.
  • Simple governance. Agile banks move through organizational silos to make smarter decisions faster with SWOT teams—empowered execution and innovation teams with a bias for action.

Digital Banking Readiness

As the digital banking evolves—at a rapid pace, of course—winning banks will change how they operate, and ultimately, evolve to agile banks.

As you develop your bank’s digital strategy, I encourage you to read more about the agile bank and get more insight into digital strategy execution.

Where are bitcoin transaction volumes heading?

For the year-to-date at the end of August 2015, the total number of bitcoin transactions has increased by 70% over the same eight-month period in 2014.  For the month of August 2015, the average daily volume of Bitcoin transactions was 115 thousand transactions per day, a 69% increase over the number in August 2014.  Bitcoin is growing at a steady pace. This is interesting because transaction numbers are a direct indicator of usage. Bitcoin usage is rising, and has been since around mid-2012, as can be seen from the transaction chart on blockchain.info. In my experience with payment systems, it is reasonably easy to forecast future volumes based on current rates of change. For example I have observed this to be the case for the growth of SEPA credit transfer volumes, the decline in UK cheques and the growth in contactless card transactions in the UK and Europe.

At the beginning of this year, I forecast that bitcoin transactions would be somewhere between 130 – 170 thousand transactions per day by the end of 2015. Based on growth so far this year, I expect the outcome at year-end to be towards the upper end of this forecast.

The total transaction value is less easy to interpret as it is driven by both usage and type of use (micropayments, high value payments, low value payments, asset-linked transactions etc). However, the value of transactions in bitcoins is rising strongly, up 162% for the month of August 2015 compared to August 2014, but the value in USD is up only 22%, due to the decline in value of btc. Over the past 12 months, the average transaction value has been in the range 1.5 – 2.4 btc per transaction, and $380 – $812 per transaction.

It is evident that the longer bitcoin endures, the stronger it becomes – it is a self-reinforcing, self-sustaining phenomenon, but it is still too early to tell whether bitcoin will be a long term success. However, sustained transaction growth is a positive factor, and one to watch closely.

An immediate obstacle Bitcoin has to overcome is the current capacity limitation of around 300 thousand transactions per day, which is getting closer (and with peaks already occurring at over 200 thousand transactions per day, this limit could be hit this year). This issue is generating heated debate on how to increase its capacity, but no doubt, consensus will prevail. Hundreds of millions of dollars are being pumped into blockchain and crypto-technology businesses, but so far there have been no major success stories or widely adopted uses of distributed ledger technology – except that is, for Bitcoin itself, where transaction volumes continue to tick steadily upwards.

What motivates young people in digital payments?

With mobile payments propositions launching thick and fast – Apple Pay, Samsung Pay, Android Pay, Zapp to name a few, how can banks and other payment service providers (PSPs) ensure that these propositions are adopted quickly, and what can they do to increase their chances of commercial success?

In an academic behavioural research study, Accenture commissioned a group of final year students at the University of Bath to understand the key drivers and motivational factors behind 18-24 years olds’ acceptance and use of digital payments.

Using a combination of empirical evidence gathered through targeted surveys and rigorous application of academic theory, we have uncovered six insights that are particularly interesting:

1. Frequent successful usage will reduce perceptions of risk over time

Consumers will always perceive risks with new payment propositions, but these perceptions largely disappear with increased usage – therefore PSPs should have strategies to incentivise consumers to frequently use a new proposition, rather than just on growing the number of consumers who try it. However, the perception of risks does not disappear entirely – for example the loss of a smartphone or contactless card, or the interception of data, so PSPs need to demonstrate to consumers that these risks are minimised and addressed by the PSP if they occur.

2. The first impression is vital to building consumer trust

Trust is the factor with the second highest influence on young consumers’ behavioural intention to use digital payments. The level of trust increased over time in the experimental groups using PayPal and Paym (a UK mobile P2P payments system using real-time payments), while that in the control group (using only contactless payments) remained static. The research results suggest that social influence (i.e. recommendations among peers) significantly affects consumers’ initial trust in new digital payment services, especially with an embryonic service at a relatively immature stage.

3. Don’t underestimate the importance of impeccable performance

‘Performance expectancy’ is the most influential driver behind young consumers’ behavioural intention to accept and use digital payments. It is essential that products and services are useful in a given context, save time or increase productivity, and always work – if a digital payments proposition isn’t useful or does not work consistently, consumers will reject it.

4. Re-engage experienced and loyal customers

As young consumers become more accustomed and familiar with using digital payments, the novelty wears off and the fun they derive from it fades away. It is therefore important to keep these consumers engaged by regularly updating and refreshing the payment proposition, for example by adding new features and functions, or enabling new uses for it. A key message is here is that keeping existing customers engaged is as important, or perhaps even more important than finding new customers.

5. Tailor the approach to mark  eting, segmented by gender

There are clear differences between the main behavioural influencers for males and females, with males being far more affected by social influence and performance expectancy than females, and females being more influenced by trust and perceived risk than males.

6. Focus on customer self-service and self-proficiency, in preference to customer support services

In deciding to adopt and use digital payments, the young consumers in our study were far more influenced by the novelty and enjoyment of the user experience than by factors such as customer service. Their proficiency and self-sufficiency in using digital payments make customer support services less relevant to them.

We believe the findings from this study will help PSPs and banks to develop winning strategies for influencing consumers to adopt digital payment solutions.

To support this objective, we created a “digital payments acceptance and use framework” that pinpoints the key behavioural influencers supported by the research.

View the image.

View the image.

We have made this framework publicly available so existing and potential PSPs and banks can consult it when designing and developing digital payment service propositions. This framework is underpinned by academic theory and has been validated through empirical rigour from quantitative testing.

The research also highlighted the importance of social media in influencing young consumers to try out and adopt new payment propositions, and recommend them to others. And it highlighted that young consumers love digital payment propositions – there was an unambiguous increase in usage and trust and drastic reductions in perceived risk among those who were introduced to Paym and PayPal in the research.

Learn more about what drives digital payments adoption among the UK’s youth including key implications and opportunities for PSPs and banks in digital payments.

In closing, I’d like to acknowledge Kim Berg, senior manager, Accenture Payment Services, who has been leading the collaboration with the University of Bath team including Dan Keene, Euan Mackenzie, Harrison George, Lauren Faulkes, Tom Dewhurtst and Tom Simpson.

Does your bank have what it takes to be digital – inside and out?

In my recent posts, I’ve discussed key elements of the digital transformation for an Everyday Bank. You need to move at the right speed, balancing disruption and core transformation. You need the right roles to govern a successful transformation. And, through it all, you need to adopt a “being digital” mindset to help evolve the culture—both internally and externally.

To be digital on the outside, your bank must use digital to improve customer engagement and the customer experience. This is rarely about bells and whistles or single features. Moreover, it’s about embracing and exploiting developments in the digital space such as new customer journeys, omni-channel interactions, mobility, gamification and social media.

Being digital on the inside means leaving no stone unturned when it comes to using digital. How can the bank adapt its internal practices to deliver and stimulate the “being digital” agenda? Challenge all aspects of execution and employ digital approaches such as involving customers in process design and embedding analytics in all activities.

Digital doers

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Read the report.

mBank in Poland is a strong example of “being digital.” The bank made a decision to go digital, and they made it happen in just 14 months. Now, they are a fully digital bank with more than 200 innovative features including merchant-funded deals, “30-second” quick cash loans, person-to-person Facebook payments and a financial products store.

Successful digital transformers like mBank are replacing traditional structures with more responsive and agile ones, and attracting and retaining top digital talent. Banks need a workforce that has truly adopted the “being digital” mindset and is committed to internal transformation that removes organizational inertia and functional barriers. Drawing on a digital mindset, they can unleash digital innovations that are scalable, and that improve the customer experience.

Explore the key building blocks of digital transformation in Being digital: Digital strategy execution drives a new era of banking