The Bankwatch

Tracking the consumer evolution of financial services

RBC speak about convergence for EBPP and statements

The commentary here from Colin McKay, vice-president of e-business architecture RBC in this video interview, is refreshing to hear from a Bank.

RBC discusses client reporting and customer statements | IT World Canada

Some notes from the interview, then commentary and discussion:

  • Old process had product and IT groups generating 18 separate statements in different formats but most ending up in print
  • each statement feed was formatted specific to the output, eg, print or web
  • each of the 18 had their own processes
  • all 18 feeds have been directed to a common store, and stored as raw data
  • the 18 raw data feeds from the core systems, are now amalgamated into a “Common Composition Engine” (CCE)
  • CCE can output in any format to print, web
  • most customers do not read statements, so the current practise of storing all in PDF format is wasteful and inefficient
  • CCE will eventually be offerred on demand, and on request, this could be PDF on demand, or web on demand
  • the Customer Preference Engine will allow customers to aggregate the data of their choice, including marketing messages,and product messages into a customised statement in the format of their choice
  • uses Telephone companies as an example of information display versus statement format.  The notion of a statement is being challenged by the web experience, and is redundant for many customers
  • He speaks of Electronic Bill Payment and Presentment (EBPP) and social networks.  “people go into town and do multiple things, vist grocery store, hardware store, and the bank;  there is a desire to conduct multiple business transactions at social networks in the same way;  what we are seeing is a convergence”

Relevance to Bankwatch:

Great interview but that last point needs some discussion.  But first with regard to the problems of multiple products and statements, the solution to the problems all banks face is clear, and he articulates it well.  The notion of on demand and in the format and design by the customer makes sense.

The notion of a social network as being analogous to “going into town to conduct business” requires some thought though.  In the real world we have Wal-Mart with photo, bank, restaurant as well as their core service of merchandise.  We have malls, with a variety of stores and banks.  We have Main St with a variety of stores and banks.  Finally we have other cities and countries that we can visit to conduct transactions.  The nice thing about the web is that it can be all or any of those.   It seems to me if we use this analogy, that the town is the web, and the concept of malls, stores, banks, and big box stores are all sites within the web, exemplified as different types of aggregation or not.  An we can get to that web using laptops, PC’s or mobile.

Customers will gravitate to the methodology of their choice, but they will require help to visualise how that future might look.  There is scant evidence that Facebook is viewed by users as that place for convergence and aggregation, or the place where they go into town to “conduct business transactions”.

In fact the evidence suggests that people are avoiding those things that get in the way of their social interaction at Facebook.  My own observation is that the jury remains out as to a desire for people to aggregate financial information anywahere except with their FI.  I know this contradicts the general movements of convergence and aggregation on the web, but so far financial services have not been pulled that way by people, which is probably dirven by privacy, security, and identity theft concerns.

Having said that it is possible if RBC display how that might work in a safe secure and convenient and non-intusive manner, that customers will accept receiving their bills and reminders inside their Social Network environment, alongside their social conversations (but obviously hidden from the view of others).  Or is this more of a channel need?  Aggregation at the device level, ie PC, mobile?  In any event its a great conversation and the rioght conversation that RBC are promoting here.

Thoughts?  Do you want to receive your statements, bills and notifications elsewhere than say at the bank site, and in your email?  If so where and how?

Written by Colin Henderson

April 15, 2009 at 11:06

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