what they want as an individual. As an industry, we ... what the market and customers demand. Is there a .... is that, i
What Customers Want Kevin Martin, Group General Manager and Regional Head of Retail Banking and Wealth Management for Asia-Pacific at HSBC, tells Marc Barber why banks have to think carefully about engaging with customers
How dramatic is the shift in customer
unnecessary duplication. We then took
expectations in financial services?
every single product through what we
There’s unquestionably a major change in behaviours and expectations. You simply cannot do what is demanded of the industry today unless you’re fully capable in digital. Today, we do four times as many digital transactions as non-digital transactions and that ratio is growing. The challenge is that we have channels built in very traditional ways around the assumed behaviours of certain
What’s changed is the mode of delivery, the way people buy and the way advice is given
called a fair value filter to make sure that the return to the shareholder and customer was equitable. The next step was to take commissions away from the sales force so that they sell on the basis of needs and get rewarded for simply doing the right thing. Whether they sell product A, B, C or D, it doesn’t make any difference as long as they’ve met the needs of the customer.
communities or customer segments. You do all that and then you digitise
For example, we know that generically, millennials expect a different tone and
The unusual opportunity presented to
processes so that the data collection
mode of interaction to the baby boomers.
us via digital in its broader sense is that
becomes common and accurate, which
But this broad-based approach to meeting
you can enter into those more intimate,
means there’s no breakage in the
customer needs is no longer sufficient.
one-to-one dialogues with customers
customer journey. Having taken these
Everyone is now looking for a bank which
in a very real-time way, at a point that’s
steps means you should have a better
is prepared to be flexible and understands
convenient for them.
understanding of the customer; you can start to create more intimate interactions
what they want as an individual. If you reflect on what happened in the
with them via digital channels.
As an industry, we need to be able to
markets over recent months around the
identify and service the needs of the
world, people understandably looked for
95-year old grandma who has never seen
comfort but that doesn’t necessarily have
a smartphone, while at the same time
to be done face-to-face, it can come in
From a leadership perspective, how
looking after her next door neighbour
the form of a voice via video or, for many,
difficult is it to keep up with the pace
who, at 97, lives her life on a mobile.
simply a constant stream of information
of change?
It literally is a grassroots rebuild.
via their mobile. Certainly, for more Our role is to cater for the different
complex or long-term decisions, people
The benefit of being a global institution
needs within any given market. So when
will probably want it to be voice-to-voice
is that nothing is ever static so we’re
we’re asked: ‘What role does digital
and to have human interaction, but even
comfortable with introducing new ideas.
play?’ Our answer is: ‘What does the
this will change over time. As a leader, you need to recognise what
customer want?’ And it is that simple for us. We don’t have a choice – this is about
What organisational changes need to
is happening and take an interest in all
what the market and customers demand.
take place to make this happen?
sources of information, whether it’s traditional news or via mobile chat, social
Is there a tension between investing
You have to start with an approach which
media or other channels. This way you
in digital services and customers
ensures that everything you do with a
can stay in touch with the communities
wanting a personalised experience?
customer is fair and right. That’s not
you serve.
about digital, it’s about a set of values. It’s simply never okay to ignore what’s
If you think about the 1950s, bank interactions were person-to-person.
In our instance, we examined every
being said in these channels as they are
Your banker was your wise counsellor.
product globally and reduced
central to what we do. >
www.criticaleye.com
What Customers Want 2
Should financial institutions rethink
I see this as a significant opportunity for the industry and I don’t say that with ego, believing we have all the answers. Good things can be done for customers which, in doing so, will create value for our shareholders. This entails providing the right products, better outcomes and value – there has to be more seamless processing, fewer errors and less cost. It’s not often you get a virtuous circle but, done in the right way, this is the opportunity that digital provides us.
Is there an increased focus on risk management?
If you have an annual planning cycle, there’s no such thing as fail fast so you have to change
how to approach innovation? You can’t be innovative if you are afraid to fail or unable to quickly try something new. This means you cannot be tied to a linear way of thinking. If you have an annual planning cycle, there’s no such thing as fail fast so you have to change. To have an attitude at the front line that it’s okay to fail is a relatively easy thing to achieve. However, if the process is that you fail and then it takes another 12 months before the next annual planning cycle comes up, it will remain a major challenge.
Traditionally, the biggest risks that
Will partnerships prove increasingly
banks focussed on related to credit
important as the industry seeks
risk, capital and maturity mismatch
to innovate?
and so on; areas where we have a You’ve got to study the market. The difficulty and the danger for banks But now, because of the explosion of
will be if they are inward looking.
digital information and social media,
You need to use fintech companies
there needs to be careful management
because many of them are doing
of data protection, reputational risk and
great things around the edges of
customer privacy – to name three.
credit scoring and other services.
You have to think very carefully about
It’s about being open to the
how you engage with customers. For
opportunities around the component
example, you need to be aware as a
parts of your business model that
bank that there are both cultural and
historically you wouldn’t have been.
generational differences in the way
Kevin Martin Group General Manager / Regional Head, Retail Banking and Wealth Management Asia-Pacific HSBC
Based in Hong Kong, Kevin is responsible for delivering the global RBWM strategy in Asia to continue to grow a sustainable business across the region. He
people think about privacy and how
What’s interesting about the industry
important certain personal information
is that, in many ways, the credit card
is to them.
was probably the last real innovation
The Hong Kong and Shanghai
as a different product.
Banking Corporation’s Executive
Executive Committee and
Committee. He is also a Director of
Of course, in terms of day to day transactions, we need to make
At the end of the day, in various forms,
customers aware and educate them
people save money and you pay them
on the types of sophisticated fraud
something or they borrow money and
out there. This is a threat that has to
you charge them something, but the
be carefully managed as people rely
base product is similar. What’s changed
more and more on mobile to manage
is the mode of delivery, the way people
their day-to-day finances.
buy and the way advice is given.
www.criticaleye.com
is a member of RBWM’s Global
Email
Share
Tweet
HSBC Global Asset Management (Hong Kong) Limited and HSBC Insurance (Asia) Limited and HSBC Life (International) Limited. Contact Kevin through: www.criticaleye.com
What Customers Want 3
© Criticaleye 2016
long history and experience.
Kevin was a speaker at Criticaleye’s Asia Leadership Retreat 2015, held in association with Accenture, Cisco Systems and CEIBS. To find out more about forthcoming Criticaleye events, click here
