Boosting Relevance and Returns: Improving the Digital Channel in Banking

As we look to the future, the digital channel is expected to play an increasingly important role in the financial services sector. Banks value the flexibility, efficiency and opportunities for customization that the medium offers, while consumers appreciate the speed and convenience of conducting transactions online. For now, however, traditional media such as television and print remain integral components of any branding strategy.

In this report, Accenture outlines the steps banks can take to derive maximum value from their marketing mix and increase the relevance and returns of online channels.

When asked which emerging changes in customer behavior will have the most significant impact on the banking business over the next three years, respondents to the Accenture Customer 2012 survey noted the trend toward self-service and the growing demand for better and more personalized service.

The statistics speak for themselves:

• Eighty percent of US households with Internet access do their banking online.

• Twelve percent more households pay their bills online now than in 2009.

• At least half of US adults with Internet access have researched financial services online.

• Between 34 percent and 62 percent of those Internet researchers applied for services online.

Despite the public’s growing interest in the digital channel and personalized service, not all banks are prepared to meet these emerging customer demands. The Accenture Customer 2012 survey found that:

• Less than half (41 percent) have strong customer data and analytics.
• Only 26 percent have integrated multichannel distribution.
• Just 12 percent have mastered the use of innovative technology.

Although the opportunities in this digital world are virtually limitless, banks are working with finite marketing budgets. The challenge is to balance the use of digital and traditional channels in a way that maximizes brand impact and returns on marketing investments.

Banks can maximize the return on their marketing investments by:

• Understanding how traditional and digital channels work together.
• Ensuring that all aspects of the marketing portfolio are delivering value.
• Creating a powerful, customized digital experience for new and existing customers.

Bringing the digital experience to life requires significant work behind the scenes. Banks must equip themselves with the technology and analytical capabilities they need to understand and respond to consumers’ needs. Organizations looking to customize the experience for current clients can glean insights from existing systems, while those focused on acquiring new customers may need to leverage anonymous third-party data to anticipate the needs of potential clients.