EXCLUSIVE TO TW: PREMIUM CLIENTS
FINANCIAL SERVICES INDUSTRY UPDATE MARCH 2017
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WELCOME … to TrendWatching’s Financial Services Industry Update, exclusively for TW:Premium clients. This update is an unmissable window into innovations impacting the Financial Services industry. This quarter, the focus is on TRUTHFUL CONSUMERISM, and the future of brands and businesses in an age of polarization, populism and post-truth. Don’t forget you also have access to a client-exclusive webinar where you can dissect and discuss this trend – and its implications – with our in-house experts. Enjoy, and good luck!
EXPLORE TRUTHFUL CONSUMERISM BRIEFING ONLINE »
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
Note: When viewing the kickass innovations from page 12 onward, look out for the trend tags! Each example is labeled with its related mega-trend (listed below), followed by the corresponding sub-trend. STATUS SEEKERS
HUMAN BRANDS
BETTERMENT
BETTER BUSINESS
YOUNIVERSE
UBITECH
LOCAL LOVE
INFOLUST
PLAYSUMERS
FUZZYNOMICS
EPHEMERAL
PRICING PANDEMONIUM
HELPFULL
POST-DEMOGRAPHIC
JOYNING
REMAPPED
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TRUTHFUL CONSUMERISM
2016 ushered in a new moment: one
So what should your brand DO? How
characterized by polarized societies,
can you survive and thrive in this new
the emergence of new populisms, large
environment?
doses of anger, plummeting levels of trust, and the rising power of post-truth.
Despite all the uncertainty of this new environment, five powerful forces
The future of consumerism in a world of polarization,
One glimpse of this new moment?
shaping the future remain as powerful
populism and post-truth!
According to the 2017 Edelman Trust
as ever. They are: TRANSPARENCY,
Barometer, global trust in government,
ASPIRATION, POSITIVE IMPACT,
business and media has fallen to its
TOLERANCE and EMPOWERMENT.
lowest levels ever.
Ground your innovation in one of these five TRUTHS, and you are building on ground that is meaningful and lasting. In this Industry Update we explore ASPIRATION at length because of the powerful opportunities offered by this TRUTH in the auto industry. Read, absorb and take action! And don’t forget to explore the full report for insight into the other truths.
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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ASPIRATION Help consumers become the people they want to be
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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TRUTH IS STILL...
ASPIRATION Help consumers become the people they want to be
Could there be a more fundamental purpose for any brand in the financial services industry than developing (or securing) their customers’ economic position in life? But forward-thinking brands will think expansively about how they can help people realize their aspirations (from entrepreneurship to experiences). So, are you merely a utility provider, or are you helping your customers reach their life goals?
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
WHY NOW?
YOUR RESPONSE?
RACE TO THE TOP
CORE COMPETENCIES
Increased transparency means increased
Consumers’ aspirations might be multi-
awareness and increased pressure. Consumers
dimensional, however your core strengths lie in
everywhere aspire to be richer (or more financially
facilitating or funding them. So think about how
secure), healthier, more successful, better
you can best support people and communities:
connected, creative… the list is endless.
from straight-up investment, to financial technology, advice and education.
OPEN TO ALL Aspiration has been democratized. Whether it’s
GET PHYSICAL
the falling cost of starting a business, or instantly-
Yes, fintech is an exciting space, and everyone
accessible tools, available at the tap of a screen;
is looking to digitize and/or automate many
consumers feel an increasingly pervasive sense of
financial transactions. But remember: you can
empowerment and opportunity.
benefit from making your customers’ aspiration tangible. See how Barclays’ converted bank
PEOPLE > PROFITS
branches into makerspaces. What internal assets
Because of regulation, incumbents in the
could you repurpose for customer benefit?
consumer-facing financial services industry (think banks, insurers and payment providers) are often
MUTUAL SUCCESS
BIG companies. Even ‘new’ entrants are often
Ultimately, you have a deeply vested interest in
large telcos. Yet despite the global financial crisis,
helping not just your customers, but society at
consumers still see these companies making big
large, succeed financially. Not every initiative can
profits. Increasingly, they expect some of those
be as far-reaching as JP Morgan’s, but even on an
to be directed to helping them, not lining the
individual level there are plenty of opportunities
pockets of shareholders and staff.
to increase financial and business literacy.
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ASPIRATION Help consumers become the people they want to be
JP MORGAN CHASE
FIRST BANK OF NIGERIA
BANCO DE BOGOTÁ
Finance company supports ailing US communities »
Nigerian bank introduces account designed to support women in business »
Social networking platform for entrepreneurs launches in Colombia »
In June 2014, JP Morgan Chase & Co announced that it would
In November 2016, First Bank of Nigeria launched an account
In October 2016, Colombia-based Banco de Bogotá introduced
commit USD 100 million in funding for economic development
dedicated to women in business. Featuring current and savings
Pymercado: a social networking platform for small businesses
projects in Detroit. In May 2016 the bank released an update,
options, FirstGem for Women also offers leadership training
and entrepreneurs. The site focuses on networking opportunities
detailing that nearly USD 40 million of funding had been
programs and business development services, including
and serves as a space for small businesses to showcase their
committed, as well as creating or preserving 450 units of housing
advisory services on wealth management and investment plans.
services to broader domestic and international audiences.
and 550 jobs. Bank employees (dubbed the ‘Detroit Service
The account also includes annual medical and health programs
Via Pymercado, businesses can build a profile, similar to LinkedIn
Corps’), contributed 5,400 hours to community organizations
and invitations to events for women sponsored by the bank.
or Facebook, and post announcements for fellow users.
via three-week work placements in the city.
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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ASPIRATION Help consumers become the people they want to be
BARCLAYS BANK
2KUZE
COMMBANK
Bank opens in-branch incubators labs for entrepreneurs and SMEs »
Pilot program connects farmers and agents across East Africa »
Bank’s virtual reality experience educates children about finances »
In March 2016, Barclays Bank opened its third incubator lab
Being piloted from January 2017, 2KUZE is a program for small-
September 2016 saw Australia-based CommBank launch The
in Brighton. During Q4 2015, the bank unveiled plans that
plot farmers across Uganda, Kenya and Tanzania. Developed
Teleporter Adventures: an educational virtual reality experience.
documented transformations for under-utilized spaces in its
by MasterCard with support from the Bill & Melinda Gates
The initiative is an extension of the bank’s Start Smart program
branches. Maker Spaces labs offer entrepreneurs access to
Foundation, the mobile and desktop app connects farmers,
and is designed to teach children financial lessons via immersive
prototyping tools, and space to test ideas while the Incubator
agents and buyers, enabling them to coordinate sales, payment
storytelling. Through the medium of a printed storybook,
Labs are designed for fast-growing businesses.
and crop distribution. 2KUZE also allows farmers to negotiate
accompanying free smartphone app and Google Cardboard
with agents and buyers directly, increasing price transparency.
headset, a Space Koala called Sammy educates children about the differences between financial ‘needs’ and ‘wants’. The story was created in collaboration with Australian author Ursula Dubosarsky.
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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APPLY THE TRUTH The Consumer Trend Canvas is a powerful tool to help you apply trends and generate trend-driven innovations of your own. Overleaf, we’ve unpacked ASPIRATION so in your next planning meeting or brainstorm session you can jump straight to the really important part: discussing how your brand can apply the truth.
DOWNLOAD THE FULL APPLY TOOLKIT
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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OTHER TRUTHS Of course, ASPIRATION isn’t the only relevant truth!
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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QUIKR
App helps citizens access cash from ATMs across India »
FA I R
Startup offers P2P insurance service » March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
TRUTH IS STILL...
TRUTH IS STILL...
TRANSPARENCY
POSITIVE IMPACT
Launched in India in November 2016,
A winter coat allowing people to make
CashNoCash is an online portal that tells
cashless donations to the wearer was
people whether a bank or ATM has cash
trialed in the Netherlands in January 2017.
available to dispense. Users can search for the
The prototype jacket – made by Dutch media
nearest ATM based, and discover wait times
company N=5 – contains a card reader which
and whether or not an ATM has been recently
can be activated by the wearer; when a credit
refilled. The crowdsourced platform was
or debit card is placed on the reader, EUR
created by India-based advertising platform Quikr in response to the demonetization of certain banknotes by the Government of India.
N=5
Coat facilitates cashless donations »
1 is automatically debited from the donor’s
account.
TRUTH IS STILL...
TRUTH IS STILL...
EMPOWERMENT
TOLERANCE
November 2016 saw the launch of Fair: a
In November 2016, a British bank announced
peer-to-peer insurance app, based in Finland.
that it would be offering a third gender option
Created in partnership with telecoms brand
for customers: non-binary (in addition to male
TeliaCompany, the digital crowdsurance
and female). The new option was introduced
(‘crowd insurance’) service means that users
following the experience of a Scottish
cover the loss of each other’s damages.
teenager, who was unable to open an account
Members decide who gets compensated
with the bank, as the only options were male
through a voting system – if sufficient people deem a claim worthy of compensation then the money is collected from participants.
METRO BANK
Bank’s application forms feature third gender option »
or female. Metro Bank also added the title ‘Mx’ to its application forms, alongside Mr, Mrs, Miss, and Ms.
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15 KICKASS INNOVATIONS March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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EPHEMERAL DIGITAL BREADCRUMBING
BETTERMENT HUMANS: RENEWED
POST-DEMOGRAPHIC POST-DEMOGRAPHIC EMPOWERMENT
ALIPAY
MEDIBANK
NOW MONEY
Mobile payment app launches AR game »
Hospital’s VR experience for patients helps prevent loneliness »
App-only bank facilitates low-paid migrant workers access financial services »
In December 2016, Chinese mobile payment app Alipay
In December 2016, Medibank began trialing Joy: a VR
Launched in the UAE in November 2016, Now Money is an
unveiled a location-based augmented reality game called AR
experience for patients at the Brunswick Private Hospital
online bank allowing low paid migrant workers to access
Red Envelope, with features inspired by Pokémon Go. Marking
in Melbourne. The Australian health insurer’s virtual reality
financial services. The mobile app-only bank offers a range of
the Lunar New Year tradition of giving money to friends and
experience has been designed following research showing that
facilities, including a current account and debit card. Available to
family in red envelopes, users can hide virtual envelopes (know
hospital patients are often very lonely at Christmas. Patients
employers as well as workers, low-cost remittance options allow
as ‘hongbao’) and upload a photo of the location with a clue.
use a Google Daydream headset and are then transported to
customers to carry out a variety of transactions such as paying
Players track down the envelopes via the GPS system, which
a peaceful nature scene where they join a group of people.
bills and transferring money overseas.
– once found and scanned – deposit money into their Alipay
Participants can then choose a short story to hear or opt to listen
accounts. Stores and local businesses also took part, concealing
to music with the group.
discount coupons and vouchers inside. March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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HUMAN BRANDS SYMPATHETIC PRICING
FUZZYNOMICS BRANDED BRANDS
INFOLUST INFORMAL INFO
BANCOESTADO
WEEKDAY & IF
EMIRATES NBD
Bank postpones credit instalments for natural disaster victims »
Fashion brand and insurer create reflective accessories for cyclists »
Bank’s chatbot offers personalized assistance via AI »
In January 2017, BancoEstado announced a number of benefits
In November 2016, fashion brand Weekday (part of the Sweden-
Being piloted from November 2016, EVA is a chatbot from
for clients affected by forest fires and floods in the Alto del
based H&M group) partnered with Nordic insurance company If
Emirates NBD. Functioning via the UAE-based bank’s Facebook
Carmen area of Chile. The Chilean bank allowed customers to
to release a limited edition collection of reflective accessories.
Messenger and mobile app, the chatbot offers personalized
postpone any outstanding credit instalments for six months and
The pieces are designed to reflect light in the dark, promoting
banking assistance using natural English. Customers can use
business account holders for 12 months. Donations could be
safety for cyclists at night. The cycling collection includes a cap,
voice or chat to ask questions, and AI-powered EVA will direct
made through the bank’s dedicated hotlines to help victims of
choker and selection of bags which are available to purchase in
them to relevant menus or to a customer service agent.
the natural disasters.
Weekday stores and online, priced from EUR 10.
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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BETTER BUSINESS CAPACITY CAPTURE
JOYNING MASS MINGLING
HELPFULL TRYVERTISING
SIMPLE
AMERICAN EXPRESS
ROYAL BANK OF CANADA
Joint bank account is designed for young people »
Pop-up eatery only serves takeout »
Customers experience loyalty program rewards via VR »
In February 2017, Simple launched a bank account for
Opened in January 2017, Take In is a pop-up restaurant created
The Royal Bank of Canada (RBC) has unveiled an interactive
consumers who want to collaborate on finances – but wouldn’t
by American Express. Diners can order takeout from 20 of
virtual reality experience within Avion Holiday Boutiques,
use a join checking account like traditional married couples,
Helsinki’s leading restaurants including casual dining eateries, as
showcasing the rewards available as part of its loyalty program.
for example. The US-based online banking service’s Shared
well as more upscale locations. Orders are placed via the Wolt
From December 2016, customers can use a headset to take
bank account allows people to control their accounts from a
food delivery app, and diners can purchase beverages from the
a virtual trip to a luxury golf course, tropical beach or dream
mobile app and view or track their joint account’s expenses and
restaurant’s on-site bar if they wish.
kitchen, being immersed in a virtual environment and viewing
transactions, as well as setting budgeting goals. Users can also
possible rewards on offer. All of the products featured as part of
easily move funds from their personal account to the shared
the free experience are available via the RBC Rewards scheme.
account if they need to.
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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FUZZYNOMICS BRANDED BRANDS
POST-DEMOGRAPHIC POST-DEMOGRAPHIC EMPOWERMENT
UBITECH CASH-LESS
VERIFONE
DAVIVIENDA BANK
WAVESHADES
Credit card loyalty points redeemed at point-of-sale »
Bank implements services for hearing and visually impaired people »
Luxury tour operator invites people to star in their own nature documentary »
A system allowing customers to pay with loyalty points linked to
In October 2016, Davivienda Bank launched several new services
Piloted at Australia’s Laneway music festivals in February 2017,
their credit or debit cards at the point-of-sale was announced in
tailored to the banking needs of hearing and visually impaired
WaveShades are sunglasses with a secure NFC contactless
January 2017. Merchants download payments and commerce
people. Implemented in the Colombia-based bank’s mobile
payment system built into their arms. A partnership between
company Verifone‘s free points’ redemption app, which flags up
banking app and call service, specialized labels, a screen reader
Australian payments platform Inamo, sunglasses brand Local
customers’ points when their card is used and asks whether they
and facial recognition services are available to use.
Supply and Visa, WaveShades can be loaded with funds, much
would like to use them to complete the sale. Available anywhere
like a prepaid card. The waterproof wearables can be used
which uses the company’s credit card terminals, the initiative is
to make purchases at any terminal which accepts contactless
a joint venture by Verifone, financial services processor FIS and
payments.
digital payments company Modo.
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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FUZZYNOMICS OWNER-LESS
HELPFULL BUILT-IN BRANDS
YOUNIVERSE BRAND ME
IDEA BANK GROUP
OLA
ADMIRAL
Hire vehicles charged based on mileage »
Ride-hailing app offers in-car cash withdrawals »
Car insurance firm analyzes drivers’ Facebook posts to set premiums »
The Happy Miles service from Poland-based Idea Bank Group
November 2016 saw Ola install POS machines in selected
In November 2016, UK car insurance specialist Admiral
allows people to rent cars, vans and trucks and pay only for their
vehicles to allow customers to withdraw cash. The scheme is the
announced a scheme using drivers’ Facebook accounts to
mileage. Individual and business customers pay a monthly fee,
result of a partnership between the India-based ride-hailing app,
reduce the price of their insurance. Firstcarquote uses algorithms
and then pay for the distance driven only. An in-car GPS system
the State Bank of India and the Punjab National Bank. The move
to analyze social media posts, giving conscientious and well-
automatically sends monthly reports to the Polish bank, so it can
comes after banks in the country struggled to cope with the rush
organized people a high score, with lower points for Facebook
keep track of what Happy Miles drivers owe. Cars cost from 235
for access to new currency after old INR 500 and 1,000 notes
posts indicating overconfidence. Admiral’s voluntary scheme is
PLN (EUR 53) per month, plus a charge of PLN 38 (EUR 0.08) per
were banned.
open to all drivers, although aimed principally at first-time car
kilometer driven.
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
owners.
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DON’T FORGET Innovations that inspire new products, services and campaigns can come from any industry. Check out these eight examples and get inspired!
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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AUTOMOTIVE
BEAUTY & PERSONAL CARE
FOOD & BEVERAGE
TRANSPORT
MINI
LE’JEMALIK SALON
BURGER KING
AIR FRANCE
Car manufacturer launches creative maker space »
Beauty salon for Muslim women opens in New York »
Fast food chain's combo meal designed for seniors »
Airline’s sneaker promotion encourages kids to visit their parents »
MOBILE & TELECOMS
NONPROFIT & SOCIAL CAUSE
RETAIL
HEALTH
CHANGHONG
STAMPS FOR GOOD
PROPULSE
WALLPAPER* & SWISSÔTEL
Cellphone features molecular scanner »
Charities supported via corporate email communications »
Deep learning system claims to be able to predict online shopping habits »
Wellness-focused hotel suite includes circadian lighting »
March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
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March 2017 FINANCIAL SERVICES INDUSTRY UPDATE
If you have any comments or questions, just email Paul Backman, Customer Success Director, at paul@trendwatching.com. premium.trendwatching.com