Navigating innovations in
Retail banking
Agenda
• Implications of the changing landscape
• Business model innovations to rebuild the bank
• New Markets services
Copyright 2013 New Markets Advisors
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An industry undergoing fundamental changes
• Changing customer behaviors
– Customers have changed their banking behaviors,
demanding a better total experience (greater convenience,
service, and products dedicated to their needs)
• Threats from new entrants
– New competition from non-bank institutions threaten
banks’ payments business
• The industry faces significant macro challenges
Retail banking positioned for disruptive innovation
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A shift in the relationship between consumer/
financial providers
• Technological developments and changes in customer behavior and
expectations along with failures and other priorities of traditional
players set the ground for new approaches in many industries
– The days in which banks were the only provider for banking products
are over. In today's environment, even start-ups are trustworthy
enough for customers to commit their money
– A variety of new players now compete to become part of customers'
financial habits. Announcements by large Internet companies such as
Google, Amazon, and Facebook engaging in payment or account
management have shaken the industry
• New competitors draw heavily on emerging changes in customer
expectations and behaviors as well as new technologies, thereby
challenging the influence of traditional bank touchpoints
• Customer relationships, technology, new touchpoints, and the
competitive landscape are changing the future of retail banking
Source: AT Kearney, “Inside tomorrow’s retail bank,” 2012; New Markets analysis
Copyright 2013 New Markets Advisors
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Changing customers behaviors
• Internet, mobile apps, social media,
and other such innovations are no
longer special, and have become the
new normal
• Customers are becoming hyperconnected, using multiple channels
to meet their various financial needs
• It is inevitable that banks need to
integrate these technologies into
their channel strategy to meet
customers demands
Retail banking channel
interactions 2016 estimates
Mobile
20-30 times per month
Web/Tablet “screens”
7-10 times per month
Call center, IVR &
voice response
5-10 times per month
ATM
3-5 times per month
Branch
1-2 times per year
Source: Bank 3.0; New Markets analysis
Copyright 2013 New Markets Advisors
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Customers taking greater control of their
banking relationships
• Customers are more likely to use other banks
– 50% of customers have changed or are planning to switch banks
– The majority (58%) of customers use multiple banks
• Customer advocacy, leveraged by social media, is gaining power
– 37% use online personal networks/trusted communities as a source of
information on banking products
• Customers want to play an active role in tailoring their products and
services
– 68% are willing to provide their bank with more information if this
leads to greater personalization or better service
• Customers want better value and improved services
– Sensitivity to fees and charges is the single leading driver of customer
attrition
– Customers want to see improvements to fundamental services they
expect to work perfectly, not only within branch networks but also
with other channels
Source: Ernst & Young, “The customer takes control: Global consumer banking survey 2012”;
New Markets analysis
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Mobile banking usage increasing sharply
Source: Bain & Co., “Customer loyalty in retail banking,” 2012
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Four phases of behavioral disruptions
Where we are now
Source: Bank 3.0
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Competitive threats from new entrants,
especially within payments
Disruptive technology
• Mobile wallet
–
–
–
–
Google’s Virtual wallet
Apple’s Passbook
Visa’s V.me
Square wallet
• P2P payments
New distribution model
• Retail store payments
system
– Walmart & American
Express’s Bluebird prepaid
debit cards
– Paypal
– Fiserv’s Popmoney
• Social media
– Dozens of crowdsourcing
platforms (from both banks and
non-banks)
Source: New Markets analysis
Copyright 2013 New Markets Advisors
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Digital payments posing serious threats to banks
• Some big banks sneer at newcomers, arguing that the
technology involved in adding a card reader to a phone can be
easily replicated
• However, the innovation has less to do with the device reader
than with a business model that has made a huge difference
to costs involved in accepting credit-card payments
– Rapidly overturning a lucrative merchant acquisition industry
Source: The Economist, “A wealth of wallets,” 2012
Copyright 2013 New Markets Advisors
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Banks start to react to these new competitors
• Innovations in digital payments are forcing
big banks and the credit-card networks to
respond in kind, either by teaming up with
the innovators or building their own
competing systems
– Citigroup is working with Google, currently the
only bank to have its card in the Google wallet
– JPMorgan Chase has built its own network to
allow people to make payments by e-mail,
using their phones or computers
– Barclays recently introduced a similar system
to Chase’s in Britain
Source: The Economist, “A wealth of wallets,” 2012
Copyright 2013 New Markets Advisors
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Other macro challenges
• Regulatory
– Higher consumer protection laws focused on reducing fees
and increasing transparency (Dodd-Frank, CFPB, etc.)
– New regulatory oversight costs, increased capital
requirements, and direct fees to cover federal intervention
(Basel III, Durbin Amendment, etc.)
• Macroeconomics
– Extended low interest rate / Net Interest Margin
environment
– Slow economic recovery
– Longer-term worries about inflation
Source: Booz & Co., “Capturing growth in US retail banking”; New Markets analysis
Copyright 2013 New Markets Advisors
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Retail banks are in a position to innovate in
response to growing challenges
Challenges
• Changing banking behaviors of
customers
• Erosion of brand equity and
consumer loyalty
• New technologies that allow
financial functions to take
place outside the traditional
branch network
• Regulations that reduce
revenue growth
Source: New Markets analysis
Copyright 2013 New Markets Advisors
Opportunities
• Integrate and deliver
excellent customer
experience across channels
• Build more holistic profiles
of customer needs and
wants
• Deepen customer
relationships and leverage
points of impact
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Agenda
• Implications of the changing landscape
• Business model innovations to rebuild the bank
– Integrate multichannel models
– Build holistic profiles of customers
– Deepen customer relationships
• New Markets services
Copyright 2013 New Markets Advisors
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Breaking down the silos
• Innovations in retail banking over the past few decades typically have
been launched and maintained in silos—each with its own sales and
distribution model, technology, and operational infrastructure
– The invention of the electronic demand deposit account decades ago
triggered a revolution in retail banking
– This was soon followed by innovations such as the ATM, credit card, floatingrate mortgage, home equity line of credit (HELOC), and various personal
lending products
– Each innovation was generally launched and maintained within its own silo,
leading to the operational models that we observe at US banks today
• But customers do not use channels or products in isolation of one another
• Banks need to rebuild the organizational structure, create a total customer
experience, and better serve customers when they need it
“If the institution were to step back from the day-to-day operations and actually look at how a
customer interacts with them, they’d realize that from a product, process and channel
perspective, the customer is totally agnostic. They just want to get their banking task done…”
Brett King, Bank 3.0
Source: PWC, “Getting to know you: Building a customer-centric business model in
retail banks,” 2011; New Markets analysis
Copyright 2013 New Markets Advisors
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Three institutional challenges
Personal incentives
•
•
•
Each product line operated in
a silo and used to be
profitable
Consolidation meant lost jobs
and, potentially, a reduction
in job responsibilities and
authority of business-unit
leaders
Few institutions had the
courage to invest in the
system integration efforts
needed to gain an enterprisewide view of the customer.
Instead, they focused
resources on improving the
product experience and
introducing new product
variations and features to
support revenue growth
Integration complexity
•
•
•
Source: PWC, “Getting to know you: Building a customer-centric business model in
retail banks,” 2011; New Markets analysis
Copyright 2013 New Markets Advisors
Consolidating the technology
platforms and operations of
multiple product lines is a
highly complex process that is
fraught with execution risk
Designing shared processes,
workflows, forms, and
technology necessitates
reconciling the diverse and
often conflicting business and
technology requirements of
various product groups
Individual business units lose
absolute control over the
product-development process
in a multi-product, customercentric world
Organizational structures
•
•
Product-line investments,
revenue, and cost allocation
models typically do not
support multi-product or
entity-level projects that
might improve operational
efficiency and organizational
profits
Instead, incentives tend to be
tilted toward funding and
implementing projects within
silos, thus driving the market
share and profitability of each
silo rather than of the
organization as a whole
16
Business model innovation
Integrate
multichannel
Customer
centricity
Build holistic
understanding of
customers
Copyright 2013 New Markets Advisors
Deepen
customer
relationships
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Agenda
• Implications of the changing landscape
• Business model innovations to rebuild the bank
– Integrate multichannel models
– Build holistic profiles of customers
– Deepen customer relationships
• New Markets services
Copyright 2013 New Markets Advisors
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Why the need to integrate channels
• Customers change their banking behaviors
– “Alternative channels” – online, mobile – are
increasingly becoming the main touch points
• Yet, banks fail to meet customers’
expectations on the online and mobile
banking channels
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Defining true multichannel banking
• True multichannel banking provides a rich set of
products and services to customers in a seamless
and always available fashion across all channels
–
–
–
–
Consistent customer experience
Appropriate levels of support
All channels available at any time of day
All channels able to deliver a satisfactory interaction
Source: McKinsey, “Banking on multichannel,” 2010
Copyright 2013 New Markets Advisors
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Branch at the core of multichannel networks
Source: Capgemini, “World banking report,” 2011
Copyright 2013 New Markets Advisors
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The changing role of branches
• Branches will not disappear, but their current main role
must end and shift to a new role and form
– Branches will be designed differently. They’ll be smaller, and fit into typical
retail footprints. There will be fewer free standing branches (less need for
large branches with drive-ups)
– Branches will be staffed differently. There will be greater utilization of
universal staff who can handle sales, service and transactions — we won’t
need as many tellers
– Branch managers will need improved market management skills. With fewer
teller transactions, branches will be more like sales centers, and this means
greater micro-market knowledge and calling skills to improve trade area sales
penetration
– Banks will implement tighter cross-channel integration with hub branches and
call centers, especially for expert support and customer advisory functions.
Leading banks are already experimenting with video conferencing and similar
technologies
– Successful financial institutions will have more robust front-line relationship
management technology to enable staff to deliver better customer service,
stronger profitable cross-sell, and achieve greater share of wallet
Source: PPC Group, “The changing role of branches,” 2010
Copyright 2013 New Markets Advisors
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Elements of multichannel banking are available,
but few banks manage to link them seamlessly
Source: Bain & Co., “Customer loyalty in retail banking,” 2012
Copyright 2013 New Markets Advisors
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Integrating multichannel essential to excellent
customer experience
Source: McKinsey, “Banking on multichannel,” 2010
Copyright 2013 New Markets Advisors
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Roadmap to channel management (1 of 2)
Source: Deloitte, “Evolving models of retail banking distribution,” 2008
Copyright 2013 New Markets Advisors
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Roadmap to channel management (2 of 2)
Source: Deloitte, “Evolving models of retail banking distribution,” 2008
Copyright 2013 New Markets Advisors
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Case study – Value proposition through
multichannel in France
• La Banque Postale has developed a “Choose the way
you bank” approach, offering the client the
opportunity to select his preferred way to interact
with the bank
– Remote vs. branch-based
– Dedicated vs. non-dedicated relationship managers
– Turnkey vs. self-service offers
• Caisse d'Epargne Rhône Alpes promotes a new
banking relationship through its
monbanquierenligne (“My online banker”) offer
with a dedicated advisor accessible remotely during
extended hour
• BNP Paribas offers a similar value proposition with
its Internet branch combining direct channel for
daily relationship, and branch access for services
requiring a more specific expertise
Source: Oliver Wyman, “Multichannel banking: Unravel complexity to turn ambitions
into reality,” 2010
Copyright 2013 New Markets Advisors
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Case study – Branch of the future model
• The conundrum facing most banks is that even as
their customers make less use of branches for
everyday transactions, the banks have yet to find an
equally good way of drawing in new customers and
doing more lucrative business with existing ones
• Citibank is piloting banking’s versions of Apple’s
stores
– At the centerpiece of the Citi’s branch of the future is
a huge, interactive media wall displaying local
weather, news and financial updates
– There is also a touchscreen “Planning Table,” a series
of interactive “Work Benches” and a digital “Service
Browser” where customers can cruise Citi’s products
and services
– If a customer needs service, they can head over to the
“360 Station,” a concierge-style rotunda
– Customers can also opt for a live video conference
with a remote Citi specialist
Source: The Economist, “Bank branches: Withering away,” 2012
Copyright 2013 New Markets Advisors
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Case study – Physical infrastructure from online
banks
•
Online banks are trying to build a physical infrastructure to
supplement their online offering
– ING Direct’s new 17,000-square-foot facility is not a branch but
a cafe and community center where every staff member is
trained to make lattes, answer questions about checking
accounts and mortgages, and work the call center on the top
floor
– Instead of a tellers' window, there's a bar that offers Peet's
coffee, pastries, cold sandwiches and salads - all from local
vendors, so of course there are vegan options
– Although there is an ATM on site, employees cannot take or
dispense cash for banking purposes. They will help customers
open an account, but they won't do it for them because ING is
"a self-service operation"
– In the basement are meeting spaces equipped with iPadcontrolled audiovisual equipment where small businesses and
nonprofits can hold gatherings for up to 40 or 50 people at no
charge
Copyright 2013 New Markets Advisors
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Agenda
• Implications of the changing landscape
• Business model innovations to rebuild the bank
– Integrate multichannel models
– Build holistic profiles of customers
– Deepen customer relationships
• New Markets services
Copyright 2013 New Markets Advisors
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Why the need to build holistic profiles of
customers
• Transition from an organizational/product to a
customer view of the portfolio
• Develop products and services that matter to
customers
• Figure out whom to target and how to market offerings
• Differentiate offers in an increasingly competitive
environment
• Connect the dots between customer value and
sustainable financial performance
• Attain top-of-wallet status with customers
Source: PWC, “Experience radar 2013”
Copyright 2013 New Markets Advisors
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Integrating data across channels essential to
building holistic profiles of customers
Source: PWC, “Getting to know you: Building a customer-centric business model in
retail banks,” 2011
Copyright 2013 New Markets Advisors
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Integration around the customer
Key considerations:
• Capturing and analyzing the right customer data
• Understanding customer needs throughout their life cycles
Source: PWC, “Getting to know you: Building a customer-centric business model in
retail banks,” 2011
Copyright 2013 New Markets Advisors
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Capturing and analyzing the right customer data
• Capturing the right data
exposes significant information
about customers’ purchasing
habits, financial needs, and life
stages—all factors that drive
their expected purchasing
decisions
• Gaining insight into the
dynamics of a customer’s
household is as important as
knowing and meeting the
needs of the individual
Source: PWC, “Getting to know you: Building a customer-centric business model in
retail banks,” 2011
Copyright 2013 New Markets Advisors
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Encouraging holistic customer understanding to
meet their needs throughout their life cycles
Key considerations:
• Assumptions should be based on historical customer data (e.g. likelihood that a customer will
adopt a product, average duration they will hold the product) and external market data (e.g.
probability that interest rates will rise or fall in the next 10 years)
• Start with one year of historical data and refine the model each year as more data is
collected. During the first few periods, it may only be possible to use the data on a relative
(rather than absolute) basis
• Over time, the assumptions that were used initially can be replaced with actual historical
information, creating a more accurate and refined model
Source: PWC, “Getting to know you: Building a customer-centric business model in
retail banks,” 2011
Copyright 2013 New Markets Advisors
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Challenges
• Too much data
– In 2009, U.S. banks and
capital markets firms
collectively had more
than 1 exabyte (or one
quintillion bytes) of
stored data
• Lack of understanding
among executives of
what big data is, and
how to use it
Source: The financial brand, “Big Data: Big opportunity in banking?,” 2012
Copyright 2013 New Markets Advisors
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Best strategy is to start small to build an
enhanced customer profile
Source: The financial brand, “Big Data: Big opportunity in banking?,” 2012
Copyright 2013 New Markets Advisors
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Case study – Citigroup starting small with card
transactions data
• In Singapore Citigroup keeps an eye on customers'
card transactions for opportunities to offer them
discounts in stores and restaurants
• If a customer who has signed up for this service
swipes a credit card, the system can look at the time
of day, the location and the customer's previous
shopping or eating habits
– If it finds that he enjoys Italian food, it is almost
lunchtime and there is a nearby trattoria, it can send
a text message offering a discount at the restaurant
• That may give the bank a second transaction and a
cut of the extra spending
• The model for this is Amazon's online store, which
recommends items that a customer might like based
not only on what he has bought previously but also
on what similar customers have bought
Source: The Economist, “Crunching the numbers,” 2012
Copyright 2013 New Markets Advisors
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Case study – RBS Citizens leveraging analytics for
better customer services
•
•
•
•
•
For RBS Citizens, mining big data and leveraging analytics play
a vital role in customer retention
Citizens employs a variety of proprietary and third-party tools
and technologies to facilitate the sales process and to
monitor client effectiveness, client usage and client
satisfaction
This constant interchange of information enhances the
customer experience and bolsters customer loyalty by
improving efficiency on their end
Efficient data mining allows RBS Citizens to be more
customer-focused and to develop solutions based on market
intelligence and data that tells what the customer wants, not
what the bank thinks they want
Harnessing customer data also helps identify clients that
could benefit from efficiencies, streamlining operations,
consolidating banking relationships, and improving the
management of their payables and receivables
Source: Banktech, “With big data comes great responsibility,” 2012
Copyright 2013 New Markets Advisors
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Case study – Lloyds leveraging analytics for
personal financial management
• Using the data can help banks offer
something genuinely useful to their
customers
• Britain's Lloyds Banking Group is thinking of
tweaking its systems to tell customers not just
how much money is in their accounts when
they ask for a balance, but also how much
they will have available once all their usual
bills are paid
• The bank has deep and rich information
about customers that can be used to give
them (the customers) better insights, rather
than just providing the system with internal
data to improve risk management
Source: The Economist, “Crunching the numbers,” 2012
Copyright 2013 New Markets Advisors
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Case study – Competition from other financial
institutions with better usage of customers data (1 of 2)
•
•
•
Even as big data are helping banks, they are also throwing up new
competitors from outside the industry
One such firm is ZestCash, which provides loans to people with
bad or no credit histories
The big difference between ZestCash and most banks is the sheer
quantity of data that the firm crunches
–
–
–
•
•
Whereas most American banks rely on FICO credit scores, thought to be based
on 15-20 variables, such as the proportion of credit that is used and whether
payments have been missed, ZestCash looks at thousands of indicators.
If a customer calls to say he will miss a payment, most banks would see this as a
signal that he is a high risk. But ZestCash has found that such customers are in
fact more likely to repay in full
Another useful signal is the length of time customers spend on ZestCash's
website before applying for a loan
ZestCash's customers are not typical bank customers because of
their poor credit histories. Most would normally use payday
lenders
The firm is achieving defaults of well under half the payday
industry's average of 40%
Source: The Economist, “Crunching the numbers,” 2012
Copyright 2013 New Markets Advisors
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Case study – Competition from other financial
institutions with better usage of customers data (2 of 2)
•
•
•
Wonga, a British start-up that offers loans for very short periods, also
looks at a plethora of different data sources, such as e-mail-address
and social-network sites, to make credit decisions on the fly
Another firm, Cignifi, digs deep into mobile-phone records, crunching
variables such as the time when calls were made, their frequency and
the whereabouts of the callers for clues about their propensity to
repay loans
Tesco, a large British retailer, collects enormous amounts of data on its
customers' shopping habits that allow it to send precisely targeted
coupons
–
–
–
When a household starts buying nappies, signaling the arrival of a new baby, Tesco
usually sends discount vouchers for beer, knowing that the new father will have less
opportunity to go to the pub
The firm also has banking ambitions. It already offers credit cards and loans and plans
to introduce full bank accounts
Given the depth of its databases, it may well assess the creditworthiness of its
customers on the basis of their grocery shopping
Source: The Economist, “Crunching the numbers,” 2012
Copyright 2013 New Markets Advisors
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Agenda
• Implications of the changing landscape
• Business model innovations to rebuild the bank
– Integrate multichannel models
– Build holistic profiles of customers
– Deepen customer relationships
• New Markets services
Copyright 2013 New Markets Advisors
43
Why the need to deepen relationships with
customers
• Decreasing revenue due to restricting sources of fee income
• Much more expensive to pursue new accounts than to expand
current relationships
• Lack of opportunity to drive non-bank consumers to the door
• Banking products increasingly perceived as commodities
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Current models not effective to encourage crossselling products
The average cross-sell metric for banks stand at a low 4.6 product categories per
household, compared to a theoretical maximum of 13
Source: McKinsey, “Back to the future: Rediscovering relationship banking,” 2010
Copyright 2013 New Markets Advisors
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The irony in relationship banking
• The irony:
– Banks already have access to more
information about their customers than
firms in almost any other industry
– Many have built sophisticated data
warehouses to collect and analyze this
information
• …But far fewer have used this
information to proactively
understand customer behavior in
order to make offerings that can
expand and retain key relationships
– More than 80% of respondents who
experienced a major life event were not
contacted by their bank
– However, 70% of those who were
contacted liked the experience
A framework for building enduring
customer relation
• Create a customer-relationship
business model
• Develop and utilize deep
customer knowledge
• Segment customers by lifestyle
• Build a customer value metric
• Understand the evolving needs
of individual customers
• Create relationship-based
services and pricing
Source: Deloitte, “Rebuilding the relationship bank: Delivering a complete customer
experience,” 2009
Copyright 2013 New Markets Advisors
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The new business model: Context is king
• Many day-to-day banking products are highly contextual
–
–
–
–
–
Mortgage (at a potential home or with a realtor)
Car lease or loan (at a car dealership or when purchasing a car)
Credit card (potentially at a mall, or getting ready for a trip overseas)
Travel insurance (when booking a holiday, or at the airport)
Student loan (when enrolling at college or university)
• Relevance comes as a key driver
– Customers want to get a deal, but banks have to make it quick, simple, and
fast to executive
• The opportunity lies in using the existing data and extrapolating a
customer opportunity with respect to banking
• Banks need to influence customers at points of impact to be
relevant in their day-to-day financial needs
Source: Bank 3.0
Copyright 2013 New Markets Advisors
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New customer’s expectations
Source: Council on Financial Competition, 2010
Copyright 2013 New Markets Advisors
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Not focusing on points of sale, but on points of
impact
The point of impact goes beyond simply the point of sale. It
includes wherever the sales journey might be initiated with a
possibility of closure
Locationbased
Points of
interaction
Need-based
Distributed
utility
Points of
impact
Point of impact selling strategies
Source: Bank 3.0
Copyright 2013 New Markets Advisors
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Leveraging analytics to predict selling or trigger
offers
Examples of event-triggered offers
Event type
Event
Event description
Significant
balance change
Investment needs
•
•
Customer’s account holdings increased by large or significant
amount
Lead delivered to banker next day who contacts customer with
offer (e.g., financial planning appointment)
Large transactions
Withdrawals/
Deposits
•
•
A transaction out of the ordinary for that customer
Lead delivered to banker next day who contact customer to
identify and fulfill changed needs
Personal tax loans
Redraw request/
Payout request
•
•
Call center receives request for redraw or payout
Lead delivered to banker next day who contact customer to
identify and fulfill changed needs
Term deposits
Renewals/
Upgrades
•
•
Maturing lead delivered to relationship manager
RM contacts customer to renew or increase deposits, e.g.
offering better rate through a structured product
Home loans
Fixed rate rollover
•
Banker contacts customer to offer various options, including
home equity line of credit, draw down, etc.
Source: Bank 3.0
Copyright 2013 New Markets Advisors
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Meeting customers’ wide range of financial
needs
Source: Council on Financial Competition, 2010
Copyright 2013 New Markets Advisors
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Other opportunities to expand existing customer
relationships
•
•
•
•
•
Insurance
Workplace banking
Loans
Mortgages
Personal financial management services
Copyright 2013 New Markets Advisors
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Case study – Big banks just starting to connect
to customers beyond the traditional channels
Copyright 2013 New Markets Advisors
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Agenda
• Implications of the changing landscape
• Business model innovations to rebuild the bank
• New Markets services
Copyright 2013 New Markets Advisors
54
Key strategic questions
• What is our business now? How can we define the market
opportunity by looking at what consumers really need, vs. what we
traditionally sell?
• How can we increase our power in the retail banking ecosystem?
How do we make ourselves indispensible to our merchant partners?
• How do we re-define the playing field to end commoditization?
• Are we a provider of integrated solutions or a supplier to the
integrators? How does that affect our sales and marketing approach?
• While we change our business model, will we help our customers
change their business model too?
• What new markets are opening up due to all this change?
• How does our heritage give us an advantage in this new world?
Copyright 2013 New Markets Advisors
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Embrace a process that creates customer-centric
solutions, driven by clear strategy
• Develop consensus about your current situation, your present
strategy, baseline knowledge, and key upcoming decisions
• Undertake primary, qualitative research with target customers to
see the world through their eyes
• Rigorously define the challenges these customers grapple with, and
create total solutions that put you in a competitive class you can
own
• Develop business plans focused on mitigating key risks, validating
success drivers, and rapidly reaching milestones that improve odds
of success
– Reduce risk before investing for scale
– Avoid false precision in financial estimates. Focus instead on “what
you have to believe” financial assumptions and achieving certainty
behind those assumptions
– Explicitly link near and long-term decisions to underlying strategy
Throughout – Work cross-functionally to make the process consensus-building from
its inception. Strategic change works best when it is a collective endeavor
Copyright 2013 New Markets Advisors
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Our view on the pattern of success
• Think first about the banking jobs consumers and their
households are trying to get done
– Only later view the opportunity through the lenses of your firm
• Put together total solutions for these needs, potentially
encompassing a range of products/services, how those are
sold, and the profit formula used to monetize their value
• Relentlessly focus on target customer types and
circumstances
• Create a business planning process that allows for fast
iteration, in the style of good entrepreneurs
• Drive decisions from over-arching strategy
– Understand the scenarios for industry evolution, your leverage
points to shape the future, and how your actions in individual
functions/business units affect those leverage points
Copyright 2013 New Markets Advisors
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New Markets qualifications
• New Markets’ Managing Director Steve Wunker created one of the
world’s most successful mobile commerce firms, Celpay
– The company targets African nations where electronic payments are
scarcely penetrated
– Celpay focuses on the B2B market, such as paying for a truckload of
soda delivered to a bustling city market
– Its systems encompass not only transaction processing, but also order
placement and financial reconciliation
– Through tackling a market under-addressed by banking incumbents,
and through taking a holistic view of its clients’ needs, Celpay has
come to transact over 5% of some of its host nations’ GDP through its
systems
– It also has the distinction of being one of the only profitable mobile
commerce ventures in the world
• We also have experience working with major regional banks on
consulting projects in consumer research and strategic planning
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Relevant services from New Markets
Light-touch counsel on strategy-shaping process
Deeper involvement in strategy and solution
creation
Structuring of primary research and
interpretation of results
Business plan creation
Facilitation of consensus-building meetings
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Who is New Markets?
• Experts in
reframing
market space
and generating
growth
• Senior
experience
• Creative and
pragmatic
• First-class
consultants,
thought
leaders, and
entrepreneurs
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Recent Clients
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Our team’s publications have appeared in:
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Contact
Stephen Wunker
Managing Director
New Markets Advisors
245 First Street, 18th Floor
Cambridge, MA 02142 USA
Tel. +1 617 337 3060
Fax +1 617 337 3070
swunker@newmarketsadvisors.com
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