INSIGHTS & THOUGHTS ON PHYGITAL BANKING ISSUE 1 Managing fast-changing scenarios and address new clients’ expectations and market challenges
September 2020
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Conceiving valuable experiences is key, which goes beyond digital or physical channels: it’s all about brand touchpoints, without a prior and unique entering point
PHYGITAL BANKING
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DINNDESIGN.COM
RIDING WISELY THE WAVE OF AN UNEXPECTED (EVEN IF UNFORTUNATE) DESIGN OPPORTUNITY ANDREA BORSETTO _ co-founder & CCO If you are in the retail industry, these two points would be obvious to you: 1) BRANCHES’ FORMATS NEED TO EVOLVE - NOT JUST CHANGING THEIR ROLE, BUT INCREASINGLY TO MATCH CUSTOMERS’ NEW DIGITAL BEHAVIORS AND NEW EXPECTATIONS People do not rigidly differentiate between channels when it comes to their experiences experiences can happen between different spaces, devices and interactions, anytime and anywhere. We interact with a brand as we commute in the train, in bed, in social settings, by entering a physical place to try a product or looking for personal advice. As social beings, we’ll always look for the human relationship, a fundamental touchpoint, the “face” of the brand. At the same time, we have high standard expectations, we demand the same level of seamless service and care regardless if we are at a hotel or opening an account or shopping for sneakers. The quality of experiences will have to increase, and be accompanied with new service models, when it comes to banks so that it is a valuable experience for the customers.
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The quality of experiences will have to increase, with new models: performing for the banks and valuable for the clients PHYGITAL BANKING
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DINNDESIGN.COM
2) COVID-19, A SUDDEN, GLOBAL DAMPER, HAS BECOME THAT “GENTLE NUDGE” TO SPEED UP THIS TRANSFORMATION PROCESS We are all discovering new possibilities to interact, shop, learn, with a click of a button or a tap on a screen: it would be untrue to claim it is all gold, “different and new” are not always synonymous with better, especially during the ongoing chaotic adaptation of our life to something abrupt. Innovation means to arriving at better ways to experience something.
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Innovation means to achieve better ways to experience something. It’s not simply disappearing into a digital dimension or demolishing everything in order to re-built. We have the chance to ride this unexpected wave to get better in our lives, making the best of who we are and of what we have experienced.
ANDREA BORSETTO PHYGITAL BANKING
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DINNDESIGN.COM
A TARGETCENTRED APPROACH
SHOW & TELL
The Bank of Georgia case history PHYGITAL BANKING
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DINNDESIGN.COM
SHOW & TELL: A TARGET FOCUSED APPROACH We have been talking about “bank of the future� for way too long: now should be the time to see something real rather than just sketchy visions. Of the many innovative projects we have done, there are certainly case studies that resolutely support this approach and available for sharing. Many banks embarked on the process to evaluate and adopt a strong target focus strategy, work on a very precise customer segmentation even creating independent brands to promote different propositions, each with clear and distinctive values, services and experiences valuable for the target they are aiming for. The most impressive is the direction taken by Bank of Georgia over the years,focusing on their customer base through: RETAIL
Bank of Georgia, Bank of Georgia, with the proposition of not only supporting the individual client but also the entire country: they truly believe in the national spirit, a common value shared by the clients. The branches were quite transactional but have enough flexibility to respond to the ongoing digital migration and the need to improve its advisory aspect.
FROM BANK OF GEORGIA SOCIAL NETWORK (a post with 11.900 likes, quite good for a bank)
Express, which are micro-branches emphasizing on self-automation, provides basic products and quick assistance. With the right balance, to address current needs and be ready for the next challenge, Express supports Bank of Georgia retail banking to reduce the operational load (allowing more advisory and higher value products proposition) effectively covers the territory and meets basic needs.
PHYGITAL BANKING
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DINNDESIGN.COM
MASS AFFLUENT
SOLO, a “lifestyle bank” a powerful branding platform where clients are “members” of a club rather than a bank. The work we did in terms of positioning and branding supported the vision to move away from being a banking institution, wearing a “suit” to become a premium brand perfectly appealing to their specific target with a strong aspirational side. SOLO is now a well recognizable entity that has the credibility to promote extra-banking experiences(cuisine, literature, financial courses or talks), events (from American jazz group to Elton John to Distinguished SOLO DISTINGUISHED GENTLEMANS RIDE Gentlemans Ride), products (from wine to jewelry). They have an e-commerce to sell the exactly the products the customers can browse and buy in the branches (aka the lounges) and even Voyager, a travel agency to offer luxurious travel to foreign countries in SOLO style. The ROI for the extra-banking definitely met the marketing goals, but the results in terms of revenues are even more impressive. We recommend a visit to their Instagram page, they are extraordinary.
A FACADE OF ONE OF SOLO LOUNGES (100% CLUB\FASHION STORE, 0 % BANK)
PHYGITAL BANKING
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DINNDESIGN.COM
WEALTH\PRIVATE
BANK OF GEORGIA WEALTH: Georgia is a small country with a lot of opportunities of growth and also a treasure of culture and uniqueness: the bank has to look outside and attract foreign clients with important portfolios. The idea behind the work we did, was to promote the country before the bank, illustrating the reason to invest money there. The result is a ultra-high quality experience at every touchpoint, complete with its rich storytelling to render the interaction unique and encourage the word of mouth within a foreign elite of clients.
THE GEORGIAN HERITAGE IS THE BRAND MAIN ACTOR
Apart from the previous formats (a huge network for Bank of Georgia/Express and around 20 branches for SOLO) for this segment, there is an exclusive, amazing flagship. We restored its very first bank in Tbilisi, reinforcing its heritage proposition even with a wine caveau (vault) from early 1900. For this segment, the clients pay very few visits per year to the bank so the experience has to be impressive in every aspect, with the right remote and in presence support. THE CAVEAU IN THE HISTORICAL BRANCH
PHYGITAL BANKING
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DINNDESIGN.COM
BUSINESS
4B, “for business”. The latest operation we supported is something that joins different business dimensions beyond banking. The bank wanted to reinforce their positioning with SME, start-ups and corporate: together we transformed the bank into a “company among other companies”, a trustable partner not only as a bank but also as a provider of additional services, fundamental for the growth of each company. Everything happens around a “one-stop proposition” between physical and digital. Taxes and legal advisory, internationalization, synergies and networking promotion, training... The branch is designed like a contemporary headquarter, a dynamic place to go for business, worth a visit because the best consultants and bankers are at your service. Another interesting feature is the possibility to complimentary booking of the different areas (meeting room, lounge, event arena) for any internal scope of each company.
4B LOBBY WITH THE ACCESS TO THE DIFFERENT MEETING ROOMS AND THE DIGITAL SYSTEM FOR ROOMS BOOKING
PHYGITAL BANKING
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DINNDESIGN.COM
These projects are the result of six years of collaboration between DINN! and a visionary bank with the courage to concretize innovation. These initiatives are definitely not about the usual “location renewal” or the simple application of IT and new brand colors. It’s about evolving the way the bank interacts with its clients, often going beyond the bank’s comfort zone to explore new distinctive opportunities. It’s not easy, indeed, to manage this new ecosystem: it demands certain investment in efforts and willingness to take some risks. Bank of Georgia is a meaningful benchmark on how one challenges the paradigm while responding to a fast evolving scenario. Banks constantly face competition both traditional and in new areas to stay relevant: whether working on your own, or with partners; to develop possible new propositions and formats.
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The key is to recognize the past models are mostly gone and to go beyond some sketchy visioning. It’s time to implement an innovative vision.
PHYGITAL BANKING
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DINNDESIGN.COM
DINN! IS AN ITALIAN DESIGN INNOVATION FIRM Through a strategic and consultancy attitude, we design amazing and winning phygital transformation projects /dinn/ is the mix between Design and Innovation. It’s the sound of a brilliant idea. OUR INNOVATION HALLMARK IS ALWAYS AIMED AT BUSINESS RESULTS We conceive international high value projects achieving concrete results, envisioning brand touchpoints and experiences. Design is the strategic leverage to connect business goals and people’s expectations with a tailor-made and human-centric approach MORE ON DINNDESIGN.COM
September 2020