Cash money and banks as we know it will be gone in the near future. Digital financial services by new FinTechs will rule our everyday routines. This could be one scenario. Another could be that banks outrun FinTechs in the long run because of their established
customer base and big budget. Which of the two scenarios is more likely?
Together, we will look into the realities and opportunities of innovative concepts from Banks and FinTechs. Learnings from the past 15+ years of eBanking and new financial services will be presented. You will see how successful service designs for new banking services were created – both from FinTechs and from Banks. With the help of a Value
Proposition Canvas we will analyse some new digital financial services.
In the end, we will discuss the recent develoment in the FinTech realm: the first FinTech got a banking license in Germany. Now, time seems to be near that FinTechs and Banks compete even more, or they cooperate. The hypothesis is: FinTechs or Banks or Bank plus FinTech – it does not matter. What matters is how well the service meets the user needs and provides a great customer experience. And service design is a great way to create such services.
7. 7Great Banking Experience by Service Design www.uxessible.com
„We have a situation, Mr. President!“
„Erst sterben die Filialen, dann stirbt die
Bank“ (Deutsche Startups)
„bis 2025 rund gut 40 Prozent weniger
Bankfilialen“ (Handelsblatt)
9. Consumers already rate the
digital experience as important
as the branch
Quelle:https://d3fj8d3h19iopa.cloudfront.net/wp-
content/uploads/2015/12/20151208_Beyond-Fintech-Infographic-UK.pdf
10. Customers with more financial
needs have higher interest in
digital-only services
Quelle:https://d3fj8d3h19iopa.cloudfront.net/wp-
content/uploads/2015/12/20151208_Beyond-Fintech-Infographic-UK.pdf
15. 15Great Banking Experience by Service Design www.uxessible.com
UX Design relates to Service Design
Author/Copyrightholder:_dChris.Copyrighttermsandlicence:CCBY2.0
16. Service Design in the bigger
picture of brand management
Author/Copyrightholder:erikroscamabbing.Copyrighttermsandlicence:CC
BY-NC-SA2.0
17. 17Great Banking Experience by Service Design www.uxessible.com
Service Design in a Nutshell
Author/Copyrightholder:brandonschauer.Copyrighttermsandlicence:CCBY-SA2.0
30. 30Great Banking Experience by Service Design www.uxessible.com
Goal: Offer services that customers want
Some factors that contribute
Brand & Design: modern and appealing
Value Proposition: as distinctive as possible & customers‘ need driven
Target user group: well defined & easy to access
Organisational structure: easy to adapt, no silos, orientation towards a common goal
38. 38Great Banking Experience by Service Design www.uxessible.com
Confrontation vs. Cooperation
3 Models for the future:
Fintechs outrun Banks
Banks buy FinTechs
Banks and FinTechs
39. Model 1: FinTechs outrun Banks
Example: N26 is fully licenced bank now
rman startup N26 building first pan-European mobile phone
40. 40Great Banking Experience by Service Design www.uxessible.com
Model 2: Banks buy FinTechs
Example: BPCE buys Fidor
41. Model 3a: FinTechs as Service
Providers to Banks
Example: Gini as technology behind
comdirect smartPay App
42. 42Great Banking Experience by Service Design www.uxessible.com
Model 3b: FinTechs as Innovation Driver for
Banks
Example: Start-up Garage der comdirect
43. 43Great Banking Experience by Service Design www.uxessible.com
Model 3b Example: AnyfolioModel 3b Example: Anyfolio
44. 44Great Banking Experience by Service Design www.uxessible.com
Model 3b Example: FinGymModel 3b Example: FinGym
46. 46Great Banking Experience by Service Design www.uxessible.com
Learning from FinTechs
- Start with no obligation / as less budget force as possible
- MVP & Pivot fast
- Diverse teams „rule“
- Embrace change / be flexible
- Agile dev helps
- Know your users
- Settle where the infrastructure is favourable (legal, staff …)
47. 47Great Banking Experience by Service Design www.uxessible.com
Prerequisites for Successful Service
Development in Agile Teams
- Establish try & error culture with clear focus
- Onboard new people and integrate different skills
- Establish mixed, heterogenous teams that are self-driven
- Find work model (different roles, tool chain, decission making process)
- Operate driven by user research and business opportunities
- Find and hire people who are engaged
- Define clear goals for teams, roles & responsibilities
- Establish accepted conflict resolution model
- Accept, promote and support change in organisational structure
- LET THE TEAMS WORK ALONE / do not interfere
Team tasks
Management tasks
48. 48Great Banking Experience by Service Design www.uxessible.com
But Banking Experience is more than Service
Individual financial needs & strategy
very personal issue, depends on personal values & goals
for example: doing good → fair investments, thematic investments
Empowerment of customers
education to enable people to make use of services
playful interaction, motivation based, best: intrinsic motivation
for example: trading basics → opportunity for customer and bank
One solution: Seek advice from outside to analyse threats, find blind spots in service landscape,
turn them into opportunities, and identify and mobilise internal ressources
49. 49Great Banking Experience by Service Design www.uxessible.com
Many thanks for yourMany thanks for your
attention.attention.
Dr. Christian Graf
cgraf@uxessible.com
+49-178-4148006
50. 50Great Banking Experience by Service Design www.uxessible.com
Pointers for further information
Article Blurred lines: How FinTech is shaping Financial Services
Article Taking friction out of banking.
Article How to Create a Digital Banking Interface using UX Design
Artikel Studie Finance 2020 – Digitale Transformation im Finanzbereich (D)
Blog www.next-finance-blog.de
Blog www.uxdesignagency.com/ux-design-blog-and-news
Blog www.der-bank-blog.de
Blog finletter.de
bynd.com/fintech-research/
Video Vortrag Manuel Grossmann bei KreativStart 2016 – „Service Design“ (D)
www.fintechnews.ch
www.interaction-design.org/literature/
Editor's Notes
Past: User-Researcher & UX Manager
Now: Product Manager & Innovation Coach
Lately:
Senior User Experience Manager @ Roche Diagnostics Ltd., Rotkreuz (Schweiz)
User Researcher @ comdirect bank AG
Service Today: Digital
Uber – worldwide cab services but no cars
Amazon – world leading commerce without having shops
AirBnB – world leading accomodation without any flat/house
==> businesses operated without having
Ebay - weltgrößte Handelsplattform bietet selbst keine Güter an
Facebook – weltgrößte (geschlossene) Netzwerk und Medienunternehmen produziert keine Inhalte
==> business do prosper without having anything physical to be bought or sold (in D: 70% of national income is by services)
==> Services are omni-present and important
We have a situation, Mr. President!
„First, the branches die, then the whole bank.“ (Deutsche Startups)
„until 2025 there will be about 40 percent less banking branches“ (Handelsblatt)
Consumers already rate the digital experience as important as the branch
Customers are open to digital-only for all of their banking needs
Those with more complex financial products – often the banks’ most profitable customers – are even more receptive to digital-only offerings than those with fewer needs
While security, personalization, speed and ease of use remain central customer concerns, expectations are evolving so rapidly that banks are struggling to keep up with the pace of change and improve service design in banking.
Meeting Customer Expectations
Disruptive FinTech competitors are threatening to steal the banks’ customers before they have time to respond.
So, how can traditional institutions improve the digital experience, and retain customers in a competitive market? And how can they keep up with the pace of disruption?
develop competative services with Service Design
become an agile organisation
„Services is everything you can't drop on your foot, ranging from hair-dressing to websites.“ (Mathew Bishop, economist)
Product: designing the object for later usage by the user (full-control over the object)
Service: planned activity unfolds later with the user (no control over the usage, e.g. Smöland Ikea Altona)
Example: Car (Product) & Car-Sharing (Service)
Service design is concerned with the design of services and making them better suit the needs of the service’s users.
Goal is to improve both quality of service and interactions between the provider of the service and its customers.
It examines all activities, infrastructure, communication, people, and material components involved in the service.
The objective of service design is to formulate both front office and back office strategies that meet the customers’ needs whilst remaining economic for the service provider.
Ideal services are considered to be user-friendly and competitive within their market.
The good news is that the core skills of UX design are similar when it comes to service design – they are just altered somewhat in scope.
High Level view (strategy): Service Design in the context of brand management
Mid level view (operational): The main tool of a Service Designer: the service blueprint to orchestrate the different assets, interactions etc. of one service
Goal of service blueprints: fully understanding the process related to a service
Means: They map all the interactions related with delivering a service, both physical and digital that
A service blueprint is an extension of a customer journey map.
A customer journey map specifies all the interactions that a customer will have with an organization throughout their customer lifecycle.
In a world where the line between product and service is becoming increasingly blurred it only makes sense for a UX designer to learn how to deliver and use service blueprints in their work.
Kleingruppenarbeit 2x10min + je Gruppe 2min Pitch + Diskussion
Wie sich figo (teils gezwungen) zur Banken-API entwickelte
http://www.deutsche-startups.de/2014/06/02/figo-banken-api/
Trading mobile
make Forex trading available to non-tech-savvy users. It had to be clear and intuitive, but still with a full set of functionality and a black & white color range.
iOS & Android App
Money Transfer App
a modern and intuitive look for their revolutionary money transfer app.
Financial inclusion in emerging markets requires easy-to-use and innovative solutions. Red Cloud Technologies aims to achieve this with a unique mobile-based cloud platform.
Android App
Factor: brand and design
Old design of comdirect until June 2016
Factor: brand and design
The new brand design of comdirect: New type, new logo, new visuals, new colour: redesign!
Old information structure, old navigation structure, old content Nothing changed under the hood
Breadth of Services
Retail Bank: multi-purpose & broad („Wholesale“)
FinTechs: single-purpose & deep („Specialization“)
Example: comdirect mobile App vs. FastLoan
Retail Bank: existing user base, often used to retail banking
FinTechs: new tech-savy customers, digital natives
Example: comdirect banking App vs. N26
Retail Banks:
each Sparkasse or Volksbank/Raiffeisenbank is independent and does not interfere with any other bank of the same network → slow, network
FinTechs:
centralized decission making → fast, hierarchical
Example: Paypal vs. Paydirekt
FinTechs outrun Banks
Number 26 gets Bank license (25. July 2016) > first step towards full blown bank
Banks buy FinTech: BPCE übernimmt Fidor
Die bekannte Bankengruppe BPCE, eine Art französische Volksbank, übernimmt die Münchener Internetbank Fidor. “BPCE will mit dem Kauf der Fidor Bank ihre digitale Transformation beschleunigen. Die Fidor-Bank wiederum erhofft sich von den Franzosen die nötige Finanzkraft für die ehrgeizigen Wachstumspläne außerhalb Deutschlands” – berichtet Finance zum Deal. Der Kaufpreis soll angeblich bei über 100 Millionen Euro liegen.
http://www.deutsche-startups.de/2016/07/31/bankengruppe-kauft-fidor-fuer-ueber-100-millionen/
Banks and Fintechs: FinTech as Service Provider for Bank, e.g. Gini for SmartPay App by comdirect
Banks and Fintechs:
- Sutor Bank Start-up Plattform
- comdirect Start-up Garage
Bankathon by Sutor & comdirect: http://www.hamburg-startups.net/zweiter-bankathon-hamburg-arbeitet-an-der-future-of-banking-gastbeitrag-von-hartmut-giesen/
https://www.der-bank-blog.de/investitionen-in-fintech-steigen-weiter/studien/digitalisierung-finanzdienstleistung/22328/
Example 1: Anyfolio in Start-up Garage
Anyfolio ermöglicht Investitionen in themenbasierte Portfolios. Anleger haben dadurch angeblich die Möglichkeit, ihr Geld in Trends wie IT-Sicherheit, Big Data oder Online Gaming zu stecken.
„ganzheitliche Social-Trading-Plattform“.
Aktien werden durch ein Team von Profis und die Community ausgewählt,
Example 2: FinGym in Start-up Garage
„Finanzen lernen“ > education approach
promise: KLARHEIT, FINANZIELLE FITNESS, LEBENSQUALITÄT, UNABHÄNGIGKEIT
Pursue personal values: e.g. doing good → fair investments, donatations (e.g. GLS Bank)