Digital Banking Strategies: Opportunities to Connect with Customers - SundaySky
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Digital Banking Strategies: Opportunities to Connect with Customers
TABLE OF CONTENTS
Inroduction ............................................................................................................................................................. 3
Drivers for Digital Experience.............................................................................................................................. 4
Building Digital-First Experience......................................................................................................................... 5
Digital-First Opportunities ................................................................................................................................... 6
Customer Acquisition.............................................................................................................................................7
Welcome & Onboarding....................................................................................................................................... 9
Support................................................................................................................................................................... 10
Loyalty and Retention.......................................................................................................................................... 11
Digital Banking Strategies | 2
INTRODUCTION
HOW ADOPTING A DIGITAL-FIRST STRATEGY CAN CREATE NEXT-GEN
CUSTOMER RELATIONSHIPS
Digitalization is changing the entire customer relationship. Banking customers can now complete the
majority of personal finance transactions on a variety of devices and platforms, without once stepping
into a bank branch.
A strong digital banking strategy creates a connection between every point of communication, at every
time of need, to create a seamless experience for customers. It also encourages customers to choose digital
channels as the primary means of connecting and transacting throughout the customer journey.
Banks can employ digital-first banking strategies across product ranges and customer interactions,
whether that’s day-to-day banking, credit cards, loans, or any other personal finance transaction.
In this whitepaper on digital-first strategies for banking, you’ll learn:
• The consumer and industry trends driving a digital-first transformation
• Key considerations for successfully executing a digital-first strategy
• How banks can use personalized video engagement at every touch point of the customer lifecycle
Digital Banking Strategies | 3
DRIVERS FOR DIGITAL EXPERIENCE
DIGITAL EXPECTATIONS IN THE AGE OF THE CUSTOMER
Consumers’ digital experience expectations are formidable, formed by long-term interactions with tech-
sophisticated industries like ecommerce and travel. Personalization as offered by Amazon and mobile-led
businesses such as Uber have reset the status quo and consumers now expect the same from their banks
and financial providers.
It’s no longer a question of digital channels or “other” when it comes to the customer
journey; it’s now intertwined. Customers are growing accustomed to companies
anticipating their needs and offering what they’re looking for — sometimes before they
even know what that is.
— Trends 2016: North American Digital Banking, 2016, Forrester Research
In the financial landscape, consumers are opting for digital channels first to execute transactions – such
as transferring funds and paying bills – and answer their questions. And FinTech continues to disrupt
how consumers interact with financial service providers, with products like digital wallet apps, person-
to-person money transfer, and social lending.
Banking is on the fast-track to digital, with digital and
mobile in the spotlight:
63%
95% 92%
95% of transactions will 63% of U.S. adults use 92% of millennials
be digital by 2019 digital banking prefer a bank with
online services
1
The Future of US Retail-Banking Distribution, McKinsey & Company
2
2015 Mobile Banking, Smartphone, and Tablet Forecast, Javelin Strategy
3
What Do Millennials Want from Banks?, American Banker
Digital Banking Strategies | 4
BUILDING DIGITAL-FIRST EXPERIENCES
CREATING VALUE-RICH DIGITAL INTERACTIONS THAT SOLIDIFY BRAND RELATIONSHIPS
Digital-first offers the best opportunity to change customers’ behavior and guide them
towards the path that’s both beneficial to their banking transactions, and their long-term
relationship with the bank. This approach teaches customers to choose digital channels as
their primary mode of interaction (over human assisted ones) and directs them to next-best
actions to maximize the value and utility of their financial products.
Digital-first experiences that are successful for both consumer and financial provider focus
on three essential elements:
Individual First: Knowing and understanding the
1 needs of individual customers are important aspects
of maintaining trusting loyal relationships between
banks and their customers. Don’t let the uniqueness
of each customer get lost in large market segments;
they’re individuals with histories, preferences, behaviors,
motivations and spending habits. Embracing these
insights and identifying specific and actionable data
points means the ability to create truly individualized
experiences that understand the customer and address
his needs with “why” – far beyond the “what” and “how.”
Relevant and Valuable Content: Delivering relevant,
2 useful information keeps the customer engaged and
continues the evolution of the relationship. Banks
should identify and recommend next-best actions for
the customer to take that maximize the value and
utility of the product or service. A focus on educating
and informing drives customer satisfaction by providing
insights that are actionable. It also saves consumers time,
decreases questions and stress, and helps to provide a
path to achieving larger financial goals.
Integrated Delivery Strategy: The next era of
3 communications moves beyond omni- and multi-channel.
Siloing communications or focusing on a single delivery
channel like email, account portal, or mobile app, often
misses a sizable portion of the target audience if it’s not
a channel they prefer. It’s important to deliver messages
to consumers via the channels they use, and at the most
favorable time.
Digital Banking Strategies | 5
DIGITAL-FIRST OPPORTUNITIES
USING DIGITAL ASSETS TO CREATE EXCEPTIONAL DIGITAL EXPERIENCES
To provide a forward-thinking and innovative customer experience, banks must embrace digitization
throughout the entire customer journey. These digital-first customer experiences allow for new sources of
value for the customer, differentiating the financial provider and driving long-term customer loyalty.
“Digital businesses win, serve, and retain customers by continuously creating
and exploiting digital assets to simultaneously deliver new sources of
customer value and increase their operational agility.”
— The State Of Digital Banking, 2016, Forrester Research
By offering valuable content for consumers across the entire customer lifecycle, banks can realize better
relationships and engagement. The results can be numerous, like increased activity, higher spend, more
digital and self-service tool use, improved benefit use, and increased savings or investment contributions,
frequency of product use, and adoption of value-added digital tools.
DIGITAL-FIRST BANKING STRATEGIES WITH PERSONALIZED VIDEO STORYTELLING
Personalized video combines data, creative elements, and messaging to create and deliver a compelling and
relevant story unique to each consumer. Built in a modular fashion and designed for reuse and scalability,
SundaySky SmartVideo employs real-time scene sequencing that enables customer communications based
on their current circumstances, preferences, and status. It is designed to directly and sustainably influence
consumer behavior by directing them to the next-best action.
Personalized video can be used throughout the customer lifecycle to inform
and guide across touchpoints including:
Customer Welcome & Customer Service & Loyalty &
Acquisition Onboarding Support Retention
Digital Banking Strategies | 6
CUSTOMER ACQUISITION
SundaySky SmartVideo allows financial institutions to combine first-party consumer data with on-site
behavior and publisher site or other second-party data to create a personalized experience that guides
prospective customers throughout the acquisition process.
IMPROVE ADVERTISING RELEVANCE & REACH
Make the most out of each paid media oppotunity by highlighting the most relevant features and benefits
through a personalized video ad. Or, retarget prospects who have abandoned a loan or credit card application,
driving them back to finish the process.
For example, these SmartVideo example scenes show a prospect’s car model and applicable discount based
on his abandoned application, aimed at bringing him back to finish and bind his insurance policy.
Car model and state drive dynamic creative elements
including text and images.
Viewer eligibility determines scene selection and applicable
discount based on abandoned application.
Digital Banking Strategies | 7
CUSTOMER ACQUISITION (CONT’D)
PROVIDE APPLICATION ASSISTANCE
Reduce application abandonment and help prospects understand the full value proposition of the product
they are applying for. Use SmartVideo to assist customers in completing applications correctly by walking
them through the process and proactively addressing common questions.
• Educate how application questions impact the offer for each individual
• Incorporate data collected at each step for a personalized SmartVideo message
• Provide information as-needed with always-available videos
FOLLOW UP ON ABANDONED APPLICATIONS
Drive overall conversions by encouraging consumers to
complete abandoned credit card or loan applications.
Follow up via email with site visitors who have
abandoned a loan or credit card application they have
started or applied for but have not yet completed.
Answer ‘What’s Next’?
• Explain agreement terms and next steps
• Highlight the key rewards and benefits of
relevant products
• Provide suggestions for other products
and services that might be of interest
Digital Banking Strategies | 8
WELCOME & ONBOARDING
PROVIDE A TIMELY WELCOME
The first 90 days represent the best opportunity to solidify and grow a relationship with new card or
account holders. SundaySky SmartVideo can help guide new customers and empower them to get the
most from new products. Preparing the right path simplifies their journey, leading to greater customer
satisfaction and share of wallet.
• Strengthen your new relationship with a video that reviews terms and benefits, and last
steps to activating a new product
• Drive digital adoption and promote self-service tools including reminders to set up alerts,
paperless statements, and autopay
• Walk through the first statement and provide a reminder of different payment options
Digital Banking Strategies | 9
SUPPORT
ENHANCE CUSTOMER CARE
Driving account holder engagement doesn’t end after the initial onboarding period. There is a myriad of
touchpoints that impact customer experience. If they’re mishandled, it could result in lower retention or
negative brand impressions. SundaySky SmartVideo lets financial providers deliver and reinforce important
information or messages at key points throughout the account holder’s journey.
• Explain fees and offer tips on avoiding fees in the future, like setting up
automatic payments and alerts
• Engage immediately with information about their POS decline, including
fraud alerts and balance notifications
• Ease anxiety associated with unidentified transactions by providing steps
to dispute charges, along with an overview of the process
• Reinforce digital behaviors such as activity review or mobile payments
DIGITAL CYCLICAL OR FRANCHISE
ADOPTION SCENES EVENT SCENES BENEFIT SCENES
Check Activity Billing Due Payment Rewards Redeem
Balance Review Date Confirmation Summary Rewards
Make Travel
Autopay Late Payment POS Decline FICO Score
Payment Benefits
Paperless Transaction Purchase
Alerts Card Reissue Cash Back
Statements Dispute Benefits
Concierge
Fees Incurred Anniversary
Services
Digital Banking Strategies | 10LOYALTY AND RETENTION
PROMOTE A REWARDING RELATIONSHIP
A successful digital-first strategy benefits both customers and financial service providers. By assisting and
educating customers on what matters most to them while driving them to leverage digital channels first,
financial institutions can strengthen customer relationships, move to top of wallet and increase share of
wallet, and increase customer loyalty by supporting consumers throughout their financial journeys.
SundaySky SmartVideo allows banks to provide personalized video experiences to customers’ that
celebrate milestones, remind them of rewards, and encourage further product use.
• Celebrate an event with a video delivered on a birthday, product anniversary, or any
number of special moments.
• Highlight the right benefits and rewards for every cardholder, keeping sports fans in
the game with pre-sale ticket deals, and travelers secure with luggage insurance.
• Help keep customers on track with their financial goals by offering and explaining
transaction trends, usage, and valuable metrics, like FICO scores.
• Extend personalized and high-quality financial advice to millions of mainstream
customers at a lower cost than that of incumbent firms and financial advisors.
These SmartVideo example scenes show variation between
an account holder’s birthday and a year-in-review story.
Digital Banking Strategies | 11ABOUT SUNDAYSKY SundaySky is transforming the relationship between brand and customer through personalized video. Our platform, built on proprietary SmartVideo technology, combines the power of video with personalized storytelling at scale to foster long-term customer relationships. The SmartVideo Platform lets marketers communicate to an audience of one and easily create, manage and optimize realtime personalized video programs throughout the customer lifecycle. AT&T, Comcast, Allstate and other industry-leading brands partner with SundaySky to engage prospective and current customers, resulting in higher revenue, lower costs and deeper loyalty. SundaySky is headquartered in New York City with offices in Tel Aviv and Tokyo. 229 W. 36th Street, 2nd Floor, New York, NY 10018 sundaysky.com | Tel: 212.929.8111
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