Celent Model Bank 2014, Part 1: Digital and Omnichannel Banking

by Jacob Jegher,  Stephen Greer, April 4, 2014
Case Studies
Global

Abstract

The vision for Celent’s Model Bank research, now in its seventh year, was to try to answer an apparently simple question: “What would it look like for a financial institution to do everything right with today’s technology?” To answer this question, Celent sought examples of best practices in technology usage.

These examples span a five-part report series:

In Part 1, Celent profiles four innovative initiatives:

  • mBank: Digital platform redesign
  • Standard Bank of South Africa: Inclusive banking initiative
  • US Bank: Mobile Banking Enhancements
  • UMB Bank: Voice of the Customer Platform

While adoption of online and mobile banking has grown steadily, there is plenty of room for improvement. What can banks do to promote the usage of self-service? It’s all about creating value for the customer and seeking win-win scenarios for the customer and the bank. Banks have to move from providing basic transaction engines to offering value-driven interactive solutions.

“Most banks have come to terms with the fact that user experience is critical to a successful and pleasant online or mobile interaction,” says Jacob Jegher, Senior Analyst with Celent’s Banking Group and coauthor of the report. “User experience and functionality go hand in hand. For example, banks that invest in PFM solutions aren’t going to see instant adoption, even if they have a slick user interface. Banks have to become trusted financial partners and educate their customers about money management.”

“Banks often talk about customer-centricity through the lens of products. Better apps. More PFM. Timely alerts,” adds Stephen Greer, Analyst with Celent’s Banking Group and coauthor of the report. “Products are an important part of the digital customer experience, but true customer-centricity is difficult to achieve without changes at the institutional level.”

This report first provides an overview of the digital and omnichannel landscape, giving a summary of the state of innovation in the market. Then Celent profiles three innovative projects, and finishes with conclusions that are indicative of broader market shifts.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

 

Summary of Model Bank Components

4

Digital and Omnichannel Theme Summary

8

 

Catalyzing Growth in Self-Service Channel Usage

8

Case Studies in Digital and Omnichannel

10

 

mBank Digital Platform Redesign

10

 

Standard Bank of South Africa: Inclusive Banking Initiative

17

 

US Bank: Mobile Banking Enhancements

22

 

UMB Bank: Voice of the Customer Platform

27

Conclusion

31

Leveraging Celent’s Expertise

32

 

Support for Financial Institutions

32

 

Support for Vendors

32

Related Celent Research

33

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