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2nd Place Finalist Consulting Case Competition for ANZ x TBWA x UniMelb

Presentation by Finalists of SAMM's (Student Association of Management and Marketing) Consulting Case Competition with ANZ Banking Corporation and TBWA. Our proposal includes 4 key disruption inspired ideas for ANZ's strategic direction.

Semester 2 (August) 2017 at The University of Melbourne.

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2nd Place Finalist Consulting Case Competition for ANZ x TBWA x UniMelb

  1. 1. ANZ x SAMM Naptime At The Finish Line
  2. 2. The Team Kate Gilchrist Bachelor of Commerce Marketing Nicole Gonzales Bachelor of Commerce Marketing & Management Serah Balasuriya Bachelor of Arts Media & Communications and Law & Justice Sue Ann Chong Bachelor of Commerce Finance & Accounting Naptime at the Finish Line
  3. 3. What you said “ANZ want to differentiate our everyday banking offer, focusing on the emotional as well as functional benefits. Essentially, making it easy for customers move, manage & use their money.” The goal is for millennials to feel on top of their money Access to money in the moment is crucial Everyday banking is not the most important thing in the minds of millennials
  4. 4. Insights into Challenges Millennials think all banks are the same Now that ANZ leads the market in mobile payments, what is the next step to further ANZ’s presence in the up and coming FinTech industry? How can we help customers even more? This means traditional marketing touchpoints with customers have less impact when coming from ANZ as opposed to Google or PayPal
  5. 5. Target Audience Security Multi-channel Real-Time Flexibility PrivacyCustomized Personalized Emotionally Connected Convenient Automated Millennials will make up 42% of the Australian workforce by 2020 75% of the US workforce by 2025 - and they’re open to whoever provides it
  6. 6. Target Audience ANZ has the opportunity to be the first bank to provide services that reflect the growing generational gap
  7. 7. ANZ’s Future in FinTech Financial Industry Disruption P2P Lending All About You Campaign The Future of Online Banking 1 2 3 4 Digital Wallet
  8. 8. Idea #1: Digital Wallet 1. Introducing the Digital Wallet 2. The Digital Wallet is set to Take Off 3. How?
  9. 9. Introducing the Digital Wallet Online MediaPrint Media Cash Card Now What? The future is moving from Card to DIGITAL WALLETS
  10. 10. What is a Digital Wallet? Current purchase abilities and characteristics Some Corporations are now Working On Buy Things with Cards Incorporating Lifestyle Services Buy Things with Apps (like PayPal and Apple Pay) Near Field Communication (PayWave) Check balance and spending online/on mobile Transfer money using BSB Account no. or mobile no. Incorporating loyalty cards and reward services on digital platforms Transferring money using email information
  11. 11. What is a Digital Wallet?
  12. 12. The Digital Wallet is set to Take Off 80% of respondents use their Debit Card to pay for everyday purchases such as Gas, Meals and groceries 14% of respondents use cash for everyday purchases 100% of 18-24 year olds report using their debit card for everyday purchases 80% of consumer spending in the US was cashless Use of cash has fallen from 69% in 2007 to 47% in 2013 Card terminals have increased 35% since 2007 3 main reasons people prefer cards over cash: Safety, Convenience and Control
  13. 13. The Digital Wallet is set to Take Off Safety? Convenience? Control? • Safe and Secure, ANZ is a long standing and well established institution. • The problem now? Being inserted into culture and change what ‘banking’ means to people. • By making banking “simpler”, “catered to you”, “part of your world”, and as convenient as possible. Banks have fallen short and not much has changed. Here’s our strategy.
  14. 14. Digital Wallet Multi-Currency Accounts A multicurrency account is a savings or everyday transact account that allows you to make deposits and withdrawals in a range of foreign currencies. • More than ¼ of people in Victoria alone are born overseas • Australia is welcoming more immigrants everyday • Giving customers control lets them protect themselves • Makes them feel IN CONTROL • Gives them power to manage their currencies in their digital wallet. S CC
  15. 15. Digital Wallet More than Just a Mobile App • Millennials and generation Z are born into technology • High expectations and preference for personalised devices • ANZ’s mobile app leaves a lot to be desired for this generation • Why not give customers more reasons to use the app? Case study: CommBank, My Spend Let’s take it one step further. 38 per cent of Australian customers' interactions with their bank occurred via a smartphone or tablet in 2014, up from 22 per cent a year earlier (Bain, 2014)
  16. 16. CC Digital Wallet Making Banking a Positive Experience Everyone loves a game. ●Turn tracking into a proactive and daily fun activity to look forward to ●Setting up weekly/bi-weekly/monthly challenges ●Enable game related push notification reminders ●To make the challenge more attractive, rewards can be given should they be able to successfully complete it. S
  17. 17. Digital Wallet The Everyday App ●Work together with popular B2C brands such as Myer or Coles and lifestyle apps such as Zomato or Uber ●Link money management and lifestyle services ● Link a strong banking institution with strong lifestyle brands used by everyday consumers ●ANZ can create a powerful one-stop platform that can provide lists of things to do/eat, places to go, as well as once more collaborations are established, a loyalty card system keeping all your cards in one place. Money management Lifestyle Services Inserted into Culture= CCS
  18. 18. Idea #2: P2P Lending 1. Peer to Peer in the Modern Marketplace 2. Opportunity for ANZ 3. Collaboration in Practice: Some Examples
  19. 19. What is Innovation Now? 84% of Millennials would consider banking with a tech company if they had a better product offer or deal than a traditional bank. They are seeking new experiences – new ways of providing financial services that are different to what is currently available.
  20. 20. Peer to Peer in the Modern Marketplace Peer-to-peer (P2P) or marketplace lending, refers to a decentralised platform, where investors facilitate lending between individuals or businesses. The amount P2P platforms lend today may be comparatively small to incumbent banks, but convincing attributes that suggest this new model of lending has the potential to reshape the industry and cut into the market share of established banks.
  21. 21. The Situation The value of loans made through P2P lending platforms in Australia will surge to $22 billion over the next five years By 2020, P2P lending to Australian consumers will increase to $10.4 billion and comprise 6% of total consumer lending in Australia By 2020, P2P lending to SMEs will grow to $11.4 billion In the long term, an estimated 30% of annual revenue of the major banks – or $27 billion – could be threatened by new players, including P2P platforms
  22. 22. The Situation 33% of millennials believe that in five years they will not need banks at all 73% say they are more interested in alternative financial markets 1 in 5 millennial investors choose to invest on the platform because they were unable to invest in residential property Millennials are 10 times more likely as people over 50 to consider using peer-to-peer lenders 23% of millennials use or are likely to use peer-to-peer lenders, compared with 2% of those over 50
  23. 23. The Opportunity for ANZ For established banks, marketplace lending poses a threat, but if addressed proactively and dynamically, also presents an opportunity. ● ANZ is strong in customer base and brand recognition ●P2P platforms are agile, entrepreneurial and capital-light Collaboration between P2P platforms and ANZ can lead to accessing greater opportunities and minimise loss of market share.
  24. 24. The Opportunity for ANZ Given ANZ has the architecture, credit and risk-management processes to leverage the concept of P2P within or alongside its own structure, there is a potential to capitalize on this to diversify risk and provide finance to millennials when it was previously not possible. The prospective profits through this include the ability to take a cut, earning an origination fee, and a second fee for payments processing and servicing the account. More importantly, these profits can be generated while off loading the actual credit risk on investors coming through the P2P platforms, thus avoiding capital charges. A reciprocal arrangement with a P2P platform can result in referrals to ANZ, when clients are in need of additional banking support. Through forming partnerships with P2P platforms, ANZ has the option of an additional distribution avenue. Rather than turning away riskier investments, ANZ can service clients via a P2P platform.
  25. 25. Collaboration In Practice: Santander x Funding Circle Santander partnered with Funding Circle two years ago, with the bank directing its focus toward improving customer service by referring clients to the platform when the bank itself is unable to provide financing. Through this, Funding Circle have been able to service previously inaccessible international markets. This reciprocal arrangement results in Funding Circle referring clients to Santander when they require additional banking support.
  26. 26. Collaboration In Practice: Union Bank x Lending Club Union Bank and Lending Club partnered in 2014. This collaboration made way for the creation of new products for Union Bank customers. Under this agreement, Union Bank purchases personal loans through the Lending Club platform and the two companies work together to create new credit products to be made available to both companies’ customer base. This approach allows for lower rates and superior service to clients of both companies.
  27. 27. Collaboration In Practice: Metro Bank x Zopa In 2016, Metro Bank became the first UK bank to lend directly through a P2P lender – Zopa. This allowed Metro Bank to better mobilise its deposits to earn an interest rate and expand beyond the UK. The move will see Metro Bank receive a return by lending millions of pounds each month directly to UK consumers through Zopa.
  28. 28. Idea #3: The Future of Online Banking 1. A Crucial Customer Touchpoint 2. Customer Service and Elevio
  29. 29. A Crucial Customer Touchpoint 35% of Australian customers' interactions with their bank occurred via online banking in 2014. However, despite falling by 7% in the past year as more users are moving to smartphones and tablets (38%), the webpage continues to be a crucial touchpoint with existing and potential customers. Source: Bain/Research Now NPS surveys 2014
  30. 30. or A Crucial Customer Touchpoint ?
  31. 31. ● 89% of customers get frustrated because they need to repeat their issues to multiple representatives (Accenture, 2013) By 2020 a customer will manage 85% of the relationship with an enterprise without interacting with a human (Gartner, 2011) Customer Service at its Finest? ● According to consumers, customer service agents failed to answer their questions 50% of the time (Harris Interactive, 2015) ● 90% of customers say they have had poor experience seeking customer support on mobile (Software Advice, 2015) ● 70% of the time, a decision to a customer query is made before the customer even contacts the company (SSI, 2013)
  32. 32. “ provides tools for site owners to improve their customer success and engagement through the creation, curation and delivery of contextually relevant in-app help, which also has the added side benefit of reducing support load.” of customers think it’s important to solve product or service issues themselves (Zendesk, 2013) of customers prefer to have self-service options available on a company’s website (Econsultancy, 2013) 50% 51% Self-Service Support with elevio
  33. 33. Localization Contextual Knowledge Site Status ➢ Deliver self-service in-app support ➢ Drive customer education ➢ Increase engagement ➢ Decrease support resources needed Self-Service Support with elevio
  34. 34. Idea #4: All About You 1. Digital Media as an Emotional Catalyst 2. Using Guerilla Marketing Tactics to Create a Social Buzz
  35. 35. Digital Media as an Emotional Catalyst It is time we roll up our sleeves if we are to arrive at a form of banking that is finally integrated into the consumer's life in an emotionally connected way. While some of us from the previous generation lament how digital technology is killing our old proven techniques, studies show the reality is that digital media has the power to have just as much emotional impact, if not more.
  36. 36. a) You Matter, Today and Tomorrow America has “Humans of New York”. How about a “People of Australia”?
  37. 37. a) A Day in the Life of... Where can we find people to feature? Through nominations sent via email or tags on social media. If possible, we can also roll out a series of videos that shows a day in the life of these people with extraordinary stories. The purpose of doing this is to show that ANZ has a heart and that we want to connect with the people on an emotional level.
  38. 38. Using Guerilla Marketing Tactics to Create a Social BuzzDistinction Unconventional Advertising Inexpensive Creative Liberty Potential for Virality
  39. 39. b) Random Acts of Kindness “Your presence alone makes a difference in the world” And for that, ANZ wants to show appreciation by doing little things to make your day. Week 1 Giving free hugs at Federation Square. Week 2 Doing a flash mob in the city, where every participant stops all of the sudden at the same time. Once everyone is staring, begin dance routine. End it by pulling out blue flowers and handing them to a stranger. Week 3 Getting a well-known band or artist to do a surprise performance in the train or tram. Week 4 Drive a branded van around the city during summer and give out refreshments/ice cream.
  40. 40. c) More than Just a Machine Inspiration board
  41. 41. Make banking fun. Show that you care. Give ANZ a heart.