Webinar Best Practices In Digital Money Management Stephen

Webinar Best Practices In Digital Money Management Stephen Walker, Analyst Catherine Graeber, Vice President, Principal Analyst April 10, 2013. Call in at 10: 55 a. m. Eastern time

Agenda › What is digital money management (DMM)? › How can digital teams drive awareness and consideration? › How can digital teams encourage usage? © 2013 Forrester Research, Inc. Reproduction Prohibited 2

What is digital money management? › Definition: a set of integrated online and mobile tools for money management, typically including, but not limited to, account aggregation, automatic spending categorization, budgeting, and goal setting Source: Upcoming “The State Of Digital Money Management” Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited

What are the benefits? Source: September 5, 2012, “The Business Case For Personal Financial

Who’s offering it? › Many of the world’s biggest banks. . . › More than 100 new launches in the US alone last year. . . › DMM is the founding purpose of many new banks. . © 2013 Forrester Research, Inc. Reproduction Prohibited

Why don’t customers use it? Base: 6, 658 US online adults who don’t use money management tools Source: North American Technographics® Financial Services Online Benchmark Recontact Survey, Q 3 2012 (US) © 2013 Forrester Research, Inc. Reproduction Prohibited

How can digital teams drive adoption? Firm’s objectives • Let customers know you offer digital money management. Awareness Consideration • Explain the benefits of digital money management. Enrollment • Make the enrollment process easy. Usage • Encourage customers to use digital money management. Source: Upcoming “Best Practices In Digital Money Management” Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited

Agenda › What is digital money management (DMM)? › How can digital teams drive awareness and consideration? › How can digital teams encourage usage? © 2013 Forrester Research, Inc. Reproduction Prohibited 8

Awareness: Lloyds TSB links money manager to wider bank branding Campaign across TV, print,

Awareness: Rabobank and CBA put DMM where customers can see it © 2013 Forrester

Awareness: Linxo uses social media to show the fun side of DMM © 2013

Awareness: other guiding principles › Start campaigns weeks, if not months, before launch. › Don’t market DMM as a separate service. › Alert customers through dynamic email campaigns and banners. › Use your staff to bring DMM to life. © 2013 Forrester Research, Inc. Reproduction Prohibited

Consideration: ANZ and PNC focus on real-life stories © 2013 Forrester Research, Inc. Reproduction

Consideration: Sun. Trust and Nat. West offer online education and assessment Sun. Trust uses resource centers. Nat. West uses simple calculators. © 2013 Forrester Research, Inc. Reproduction Prohibited

Consideration: ANZ and ASB offer inbranch assessments › What Is Digital Money Management (DMM)? › How Can Digital Teams Drive Awareness & Consideration? › How Can Digital Teams Encourage Usage? © 2013 Forrester Research, Inc. Reproduction Prohibited

Agenda › What is digital money management (DMM)? › How can digital teams drive awareness and consideration? › How can digital teams encourage usage? © 2013 Forrester Research, Inc. Reproduction Prohibited 16

Firms need to meet customer expectations on three levels Enjoyable Easy Use game mechanics and social features to make it fun. Make it really easy to use. Meets needs Source: Upcoming “Best Practices In Digital Money Management” Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited Provide useful, actionable advice.

Question: How do digital teams provide useful, actionable advice? © 2013 Forrester Research, Inc.

No. 1: Encourage customers to set up savings goals, — e. g. , Mint.

No. 2: Help customers see ahead — e. g. , PNC’s “danger days” ©

Help customers run “what if” scenarios — e. g. , Planwise and Strands Finance

No. 3: Use mobile to deliver advice when and where it’s needed © 2013

Meniga offers point-of-sale decision support with a social dimension © 2013 Forrester Research, Inc.

Money. Desktop’s “Guide. Me” app acts as a financial coach or GPS © 2013

No. 4: Use community to generate advice — e. g. , UBank and Citibank

Offer peer-to-peer guidance — e. g. , Adaptu © 2013 Forrester Research, Inc. Reproduction

No. 5: Notify customers of better offers — e. g. , money. Strands Money-saving

Banno’s “Grip” app links offers to point of sale © 2013 Forrester Research, Inc.

Question: How do digital teams make money management easy to use? © 2013 Forrester

No. 1: Prioritize accurate spending categorization © 2013 Forrester Research, Inc. Reproduction Prohibited

No. 2: Integrate tightly into digital banking © 2013 Forrester Research, Inc. Reproduction Prohibited

Shallow versus deep integration › Shallow: integrating as far as the consumer’s eye can see…. › Deep: integrating underlying online and PFM databases…. © 2013 Forrester Research, Inc. Reproduction Prohibited

No. 3: Use alerts to help customers stay on track — e. g. ,

No. 4: Show customers what they want to see — e. g. , Key.

Experiment with more intuitive visualizations of spending — e. g. , Money. Desktop, On

No. 5: Keep It Simple › Launch with a limited feature set…. › Create

IND Group organizes content Life Stories © 2013 Forrester Research, Inc. Reproduction Prohibited

No. 6: Use videos to explain common tasks — e. g. , Lloyds TSB

Question: How can digital teams use game and social features to make digital money

No. 1: Create games out of what is good for customers — e. g. , Mint. com Source: January 26, 2012, “Case Study: Mint. com Grows Its Business Using Game Mechanics” Forrester report © 2013 Forrester Research, Inc. Reproduction Prohibited

Play. Moolah lets kids earn points and prizes through chores © 2013 Forrester Research,

Meniga uses quizzes to help customers understand their spending © 2013 Forrester Research, Inc.

No. 2: Encourage customers to share their savings goals — e. g. , ICICI

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Thank you Stephen Walker swalker@forrester. com Twitter: @sjbwalker Catherine Graeber cgraeber@forrester. com