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Banking

Sustainable finance: What you need to know about its challenges and opportunities

December 2, 2022 by


Sustainable finance is a topic that has been gaining importance for governments and businesses across the world. During the MoneyLIVE APAC conference in Singapore in September 2022, Gobeyond Partners hosted a workshop to explore this issue with industry leaders and experts across the financial services ecosystem in Asia.

Here, Jasdeep Ghuman and Boon Phua look at some key insights derived from the workshop. A range of topics raised included: why companies are pursuing sustainable finance, common obstacles they face, and what can be done to encourage sustainable finance efforts.



Ali Fry, Managing Director, Gobeyond Partners APAC, hosting the workshop at MoneyLIVE APAC 2022

Let’s turn to what sustainable finance is all about; sustainable finance means also reviewing businesses’ financial decisions through the lens of Environmental, Social and Governance (ESG), with a focus on longer-term investments into sustainable projects and economic activities (World Bank). It is increasingly making its way to the top of board meeting agendas and forms a key part of strategic discussions within organisations worldwide. Momentum has been building globally as financial institutions create new products and services that align across ESG efforts, while governments are establishing new policies and standards to meet targets set out in the United Nations’ Sustainable Development Goals. 

What are the drivers for companies to pursue sustainable finance? 

There is now greater emphasis and expectations for companies to demonstrate the moral obligation to do the right things for their people, business, and the environment. Given that Asia is home to over 60% of the world’s population and accounts for close to half of global greenhouse gas production, the region has a critical role to play in sustainable finance.

At the MoneyLIVE APAC conference in Singapore, there were robust discussions around the positives that sustainable finance has to offer businesses that choose to embrace it. Some of these benefits include: better working environments making for more engaging places to work, having a positive impact on communities, lower waste and pollution, with a move to renewable energy sources resulting in cleaner environments. Here are some of the key drivers which the group discussed:

Regulations are changing. New rules are being implemented as governments aim to play a significant role in the push for organisations towards sustainable finance. The need to abide by rules in such a regulated industry often puts pressure on financial institutions to accelerate change (but often not at the same pace as a profit-focused initiative for example).

Customers expect it. The scale of sustainable finance is still relatively small, but we have seen an influx of investors considering and – crucially – acting upon, their ESG considerations in the last few years. Concerns over climate change, human rights and equality all play an increasing part in their decision-making.

Demographics are reinforcing change. There is now a much larger demand for sustainable products and services by younger generations. Millennials are pushing demand for more sustainable investment offerings from financial institutions. According to KPMG, 81% of millennials were keen to know more about responsible investing and are twice as likely as older generations to want their pensions to be invested responsibly. Businesses can also leverage sustainable finance as a key Employee Value Proposition. This can attract talent who are keen to join organisations with similar values and commitments to sustainability.

Institutional weight is behind it. Linked closely to the above point on demographics, institutional investors are building ESG into their corporate strategy, with shareholders and clients expecting a broader range of investment opportunities. Organisations are also divesting from companies involved in unsustainable industries like fossil fuels, mining, and tobacco, which shifts market focus considerably. For example, some of the world’s largest national/sovereign funds have divested from investments in fossil fuels over the past few years and moved towards renewable energy investments instead.

What are the common obstacles companies face?

There are challenges related to regulation, costs, knowledge and timeframe, all of which were discussed by participants at the workshop.

Regulations differ across countries and regions, and traditionally the perception is that European markets are ahead of the curve. Is there enough being done by countries to meet the targets set out? We are also seeing different regulatory interpretations across regions, which lead to inconsistent views impacting sustainability standards.

Estimated costs associated with making such big changes could very well be in the trillions of dollars, so what types of support are available for organisations to start making changes? There is also a clear knowledge gap around this topic. Sustainable finance is such a substantial and diverse subject that even amongst an experienced group at the workshop there was insufficient knowledge to cover all aspects.

Sustainable finance is often not high enough on the strategic agenda. Some participants acknowledged that their companies could do more when it comes to incorporating ESG into their business strategy.

Can corporate strategy work with the longer-term timeframe required to achieve results from sustainable finance? We found that executives are often incentivised to deliver financial results quickly, with reward packages based on short-term results. This often leads to little or no incentive to think about the bigger picture and a longer planning horizon, leading some businesses to focus solely on short-term gains.

What can be done to encourage and support sustainable finance? 

A key challenge, much discussed at the workshop, was how to drive greater adoption amongst industry players. While incentives, rewards, and active recognition of sustainable finance’s benefits and organisations’ ESG responsibilities can all help to push the agenda, there are active costs involved in doing so.

We explored how different groups of industry players could start to make a difference:

Regulatory agencies

Governments and central banks can play a critical role in creating a conducive environment to nurture sustainable finance efforts. For example, Singapore is Southeast Asia’s largest market for sustainable finance, and the Monetary Association of Singapore (MAS) has since supported the issuance of over USD28 billion of green and sustainability linked loans. In addition, MAS established a Green Finance Action Plan to drive adoption of sustainable finance across the region, and partners with key players to establish a vibrant sustainable finance ecosystem.

While the industry looks towards central banks and governments to establish regulations, guiding principles and ultimately incentives around sustainable finance, regulatory bodies face challenges in doing so. Some of the concerns raised at the workshop include the need for regulators to ensure a level playing field, and questions around the ability to finance costs of such incentives.

While there is no one-size-fits-all solution, regulators could start by obtaining a clearer understanding on the intent behind best practices of other countries, and then assess the viability of implementing these practices internally.

Financial institutions and investors

According to the United Nations, 80% of the investment industry and more than 260 banks have committed to both the Principles for Responsible Investment and Principles for Responsible Banking. This represents at least USD2.3 trillion in sustainable financing since 2019. While critics have called out discrepancies between some institutions’ commitments and their actual investments, improvements to reduce greenwashing have definitely been made.

The concept of green banking is less prevalent in Asia than in Europe and the United States. To target the consumers ready for change and are willing to support sustainable financing, banks and insurers in Asia could consider introducing green banking products. This could provide a key differentiator and help capture first mover advantage. Private investors should make a concerted effort not to invest in companies or industries deemed unsustainable. Perhaps a testament to the industry’s efforts, the International Monetary Fund estimated the current value of ESG-related funds to be some USD31 trillion, with investments set to grow even further.

Businesses

Companies should actively embed sustainable finance into their core business model and seek to generate benefits for themselves and their customers. Rewards and recognitions can be changed to advocate longer-term investments in ESG efforts and products. Training can also be proactively provided to bridge the awareness and capabilities gap, particularly amongst middle management.

This does not just apply to large entities, as small and medium enterprises (SME) can make a difference as well. According to the World Economic Forum, there are over 62 million SMEs in Indonesia, Southeast Asia’s most populated country. This translates to one SME for every five Indonesians, and if they too are able to push for sustainable finance, these tiny ripples could culminate in a sizable momentum.

A collaborative approach

A major takeaway from the workshop was that, too often, industry players try to advance efforts in silo or adopt a wait-and-see approach. A more collaborative approach is needed, for example through the form of private-public partnerships or adopting an ecosystem approach to support sustainable finance initiatives.

Contact us to progress this topic further and build on how organisations can make a difference through their ESG and sustainable finance efforts.


Gobeyond Partners strengthens its financial services team with the appointment of Rachel Whitaker

September 27, 2022 by

Rachel Whitaker has joined Gobeyond Partners as Client Partner for the financial services sector, helping to further support and grow the organisations already impressive portfolio.

She joins the business from Aviva, where she spent over two decades. During her time there, Rachel held P&L responsibility and successfully led customer experience and transformation initiatives for the UK businesses.

Commenting on her new role, Rachel Whitaker said “I am delighted to have joined the financial services team at Gobeyond Partners.  I look forward to bringing my knowledge of delivering innovative and transformational customer experience programmes to both our current, and future clients.”

Herve Mazenod, Managing Director for the financial services sector at Gobeyond Partners said: “We’re delighted Rachel is joining the team at Gobeyond Partners to support the further growth and development of the sector. Her experience of large scale customer experience transformation, in-depth sector knowledge and her passion and energy will be assets to our team and clients alike.”

In this role, Rachel will use her unique experience in the financial services sector and collaborative approach to work with clients to support and develop solutions to a wide range of challenges and opportunities which financial services organisations experience.

Reflections on ‘The business case for customer journey transformation in financial services’ Think Tank

May 31, 2022 by


Customer-led transformation remains front-of-mind for many organisations, particularly in the financial services (FS) industry. The promise of higher profitability, improved customer experience, greater capacity to manage risk, and better employee conditions is highly compelling, making the business case for customer-led transformation stronger than ever.  

During the 2022 MoneyLIVE Summit in London, I joined my colleagues from the wider financial services team at Webhelp as we hosted a Think Tank session to discuss what FS firms should consider when pursuing customer-led transformation. Participant discussion covered areas such as, how to recognise the value of personalisation and professionalisation, transformation through the integration of change initiatives, what the true cost of poor customer service is, and considerations for better customer experience measurement. 

Here are some of the key talking points and actionable advice that emerged from the discussion.




Professional and Personal Customer Experience 

Customers are making ever increasing, and varied, demands of the financial services brands they receive products and services from.  Their enquiries can often be ‘non-standard’ or complex in nature and require personal, human contact.  Therefore, the availability of highly skilled and compassionate front line advisors who can offer a level of personalised service was considered to be crucial. 

Participants also suggested that the organisations who develop a deeper level of curiosity around their customers can support the delivery of a more personalised service, and will undoubtedly gain a better understanding of their customers, their challenges and how best to resolve.  

Technology was highlighted as a key enabler to this more personalised experience. Participants agreed that creating a single holistic technology solution was far more valuable than implementing several individual, often disparate solutions, as this helps to enable personalisation and simplify processes, which the group felt could lead to greater customer trust and a reduction in unnecessary, often duplicate interactions.   

From a people perspective, leveraging the global talent pool and decentralising recruitment to enable customers to be supported in their primary language was also discussed as means of helping firms develop higher levels of customer trust and an improved reputation. 

Integrated Transformation Programmes 

The participants discussed a common challenge around transformation programmes where momentum can quickly be lost when involving many different functions or teams who lack an established singular, committed vision from the outset. In setting in place a clear vision, challenges around shifting the culture away from silos to a more collaborative approach could be alleviated, achieved through the involvement of all stakeholders at every step of the journey and gaining their trust and support. Too often, organisations have competing initiatives and priorities, often without realising it. 

According to participants, transformation programmes can often suffer from scope creep and be drawn out for long periods, or they are too ambitious and overarching, with unachievable goals in place.  Crucially, programmes are seldom broken down into a series of more manageable objectives. These delays can lead employees to lose confidence in the changes, so companies should first identify and communicate the problems they want to solve, break them down into smaller parts and consider deploying a core team of employees whose role it is to develop and design the appropriate solutions to tackle these problems.  These tactics can be hugely beneficial in helping shift a culture of silos to one of greater collaboration. 

The True Cost of Poor Service 

The participants were clear that poor customer experience impacted a number of areas, from reputation to revenue.  Discussion also focused on using the costs of poor customer service to support developing the business case for customer journey transformation.. Many elements came out of the discussion, including the importance of measuring the impact of reducing complaints, attrition, failure demand and remediation costs, alongside identifying improved revenue opportunities associated with happier, more loyal customers. 

Ensuring employees involved in delivering customer experience, whether front line or back office,  understand the revenue and reputational consequences of leaving problems unsolved was also discussed, with the importance of outlining success factors and confirming everyone’s role in delivering these factors deemed as crucial. This would include requiring firms to put potential poor service issues under the spotlight and expose them to everyone providing front line customer support.  

Financial services firms can limit the cost of poor customer experiences by balancing tactical and strategic initiatives while ensuring they use the right delivery approach in the right situation — agile vs waterfall, for example. However, participants pointed out that not all companies or teams are mature enough to go agile, and for the latter to work effectively requires many functions to align. 

Measuring Customer Experience 

The group cited measurement as a real challenge, noting that it is exacerbated by having to deal with disconnected customer journeys across multiple channels, leading to issues such as blind handoffs between departments and repeat contact and causing confusion and distress for customers. Additionally, journeys can often be designed around the “average” customer, which excludes the significant variety of circumstances seen throughout an entire customer base — something my colleagues at Gobeyond Partners explored in-depth when analysing the fraud customer journey. 

As a result, customer experience (CX) is then measured across multiple channels and platforms, often with no specific focus or common metrics that can inform CX strategy.  

Therefore, the ability to measure customer experience in a coherent, methodical and wide-ranging way is crucial, and there’s certainly no lack of data available in this context.  As is often the case however, it is understanding what can be measured and how best to do this that can prove a challenging stumbling block. 

Typically organisations in the financial services sector and beyond will have a direct feedback mechanism in place, usually surveys deployed after a customer interaction, but it is the opportunity to blend this direct feedback with the indirect and across the entire customer journey, that can make a tangible difference.  This indirect data is often sentiment based, derived from conversations with customers, in-person, on the phone or through live chat platforms, and with the right expertise and technology can be gathered at scale. 

Having this level of data structured in a usable way allows for analytics models to be built that can measure the value of CX improvements across the full spectrum of the customer journey, something deemed important with the think tank audience but often unavailable. The power of this indirect data will only grow, with the deployment of emotional detection solutions becoming more prevalent.  In a time where the cost of living crisis seems to be taking further hold on society, the technology and data that will enable front-line advisors  to have deeper, more meaningful conversations should become an important part of the overall customer experience. 

A common goal to deliver customer-led transformation

It’s rare to get so many leading customer experience leaders and decision makers from the financial services sector in one room and to have the time to talk in-depth about the challenges they face. From large retail banks to smaller challenger fintechs, there was a commonality in the appetite to deliver transformation that places customer journey at the core. Frustrations around how best to measure the end-to-end customer experience were commonplace within the group, as was the failure to recognise the cost of failing to offer customers the best possible service.    

The willingness of those in the think tank to engage in efforts to work more collaboratively on transformation programmes was a definitive positive and bodes well for transformation programmes going forward, as does a willingness to embrace technology as a key enabler for a better customer experience. 

The full article looking at ‘The business case for customer journey transformation in financial services’, upon which the think tank discussion was based, is available here


Hervé Mazenod is Gobeyond Partners’ Managing Director, Financial Services, and has over 20 years of consulting experience, 17 of which he spent in FS. An engaging leader, Hervé has managed multiple global transformation programmes, helping banking, pensions, and insurance organisations solve complex customer journey problems with innovative solutions. 

Find out more about Hervé here. 

The business case for customer-led transformation in financial services

May 3, 2022 by


Hervé Mazenod, Gobeyond Partners’ Managing Director of Financial Services, recently attended the MoneyLIVE Summit as part of the Webhelp group, hosting a Think Tank which considered the business case for customer-led transformation in financial services. Hervé shares his thoughts in this article.


The financial services (FS) sector is under increasing pressure to modernise operational models whilst driving profitability, improving customer experience (CX), managing higher levels of risk, and looking after its people. 

In this rapidly changing business environment, customer-led transformation can enable firms to tackle these challenges, get ahead of potential disruptors, provide the proper channels to retain customers, and become agile enough to pivot when consumer behaviours inevitably change.  

As such, the firms that will most successfully evolve are those that commit to holistic, flexible, and connected customer-led transformation programmes. This article explores the crucial business case for doing so, providing advice and examples to guide firms in the right direction.


Contents

1. Why is customer-led transformation so crucial in financial services?

2. The outcomes of a successful transformation 

3. Friction in the transformation process

4. Transformation friction in the fraud customer journey

5. Implementing end-to-end customer journey transformation

6. Quality is free



Why is customer-led transformation so crucial in Financial Services?

In a recent article, we explored the next wave of challenges that organisations were facing, many of which are already coming to the fore.  

For the general population, the long-term issue of the rising cost of living is significantly impacting consumers’ financial well-being. Plus, we are seeing an exacerbation of the narrative around increasing wages, increasing resignations, and an inability to recruit adequately. 

Regulatory pressure continues to build, with the Financial Conduct Authority’s (FCA) proposed Consumer Duty being an example. While the Duty is there to protect customers, it will also complicate the supply of retail financial products and services for firms.  

Alongside these challenges, the importance of customer experience remains, with competition in the market continuing to grow relentlessly. In the UK, poor customer experience costs businesses over £37 billion per year, and there is a strong connection between customer satisfaction and sales gains, with companies seeing a 4.4% drop in sales when CSAT scores fall at least one point below the sector average.  

There are also continuous changes in consumer behaviour, with some considerable differences in customer experience expectations across Europe.  

Webhelp recently conducted a European survey to analyse customer perceptions of banking and insurance interactions. Here are some of the most prescient results.  

Customers prefer to avoid branch visits

Survey respondents preferred online channels, but voice was still popular in some countries. Still, interaction through a physical store or branch was the lowest preferred channel across Europe (19%). These findings mean that firms have an opportunity to better serve customers by investing in email, webchat, SMS, and social media, leading to enhanced customer experience and fewer overheads related to physical locations.  

Improving first-time resolution will boost loyalty

Around 25% of respondents said their provider did not resolve issues first time, and over 40% said it was a high effort to drive a resolution. When measuring these results against customer loyalty, 10% said they would reduce or cease their relationship with the business after their interaction, showing a clear opportunity to retain customers through improved experiences.  

The threat of disruptive business models

Over 40% of customers said they would actively leave their current provider if brands such as Google or Amazon started offering banking services. By working to understand why customers would so willingly switch brands, businesses could pivot their offering to better meet customer needs, and pre-emptively disrupt the market.

Customer needs are also becoming more complex and personal. With the proliferation of automation in the customer journey, the need for a human touch with empathetic customer experience agents will become more important for dealing with complex tasks. 

By meeting the combined weight of these challenges and recognising the customer’s evolving demands, firms have a clear opportunity to differentiate in the market – a differentiation that begins with developing a robust customer-led transformation programme. 


The outcomes of a successful transformation

The external factors justifying customer-led transformation are highly compelling, with a broad range of outcomes that firms can factor into an associated business case.

Higher Profitability

While customer experience transformation requires investment, the benefits quickly outweigh the costs. By focusing on fluidity of service, the often hidden cost of poor experience is brought to the surface as unnecessary hand-offs, delays, errors, queries and other failure points are gradually reduced.

Organisations can achieve higher productivity and create interactions that are of real value to customers;  leading to better reputation, a reduction in  operational headcount and an increase in potential revenue.

Enhanced customer experience

Ultimately, by giving customers efficient digital channels, fast resolutions, and personalised interactions at every step of the journey, the experience of dealing with your organisation becomes effortless, impactful, and worth talking about, attracting more customers and boosting business.  

Engaged people and talent

Creating awareness of the customer journey allows colleagues to see the value in their role and how their interactions fit the overall experience, increasing engagement and driving a continuous improvement mindset. This cultural shift results in less attrition and helps attract new talent to the organisation. 

More protection for customer and business 

Customer-led transformation can enhance debt management or financial support services during inflation and job insecurity, making firms trusted partners to customers. It can also help prevent fraud and other economic crimes since many aspects of transformation require a re-visiting of data security practices and systems.  

In striving to achieve these outcomes, what pitfalls can firms expect to face along the way? 


Friction in the transformation process

In our experience, many transformation initiatives appear to be sensible, well thought out, and rigorously planned, but they often fail to deliver the total value that stakeholders anticipated at the outset, and sometimes have negative impacts on other parts of the business and customer experience. 

Lack of an end-to-end view

Transformation programmes often focus on individual segments of the customer journey. For example, an insurance firm might hone in on transforming the underwriting process rather than the entire policy renewal process. This approach often fails to impact the customer as it neglects to improve all other steps in the journey. 

Not truly understanding the customer

Many enterprises fail to understand customer emotions because they map journeys based on their interactions rather than from a customer’s perspective. In our experience, the absence of end-to-end data systems holds organisations back even further, preventing them from joining the dots across the journey and seeing the first-hand customer experience.  

Failing to take a holistic approach

The actual cost of transformation can be significantly greater when organisations focus on single-point solutions that fail to take a broader, enterprise-level approach. For instance,  the automation of a mortgage decision/underwriting process should be one of a number of changes driven by a holistic design that looks at the overall experience of  the customer looking to move home (or at the very least looking for credit). Too often, these instances are single point solutions which do not link with a broader strategy. 


Transformation friction in the fraud customer journey

Along with these fallbacks, the financial services industry faces transformation barriers in many existing processes. Take fraud, for example. Identifying and verifying a genuine fraud case can often be lengthy and complex due to the numerous necessary steps required to manage risk and protect the customer. On one level, this friction is intentional and designed to identify potential fraudsters. But, on the other hand, it results in a fragmented process that adds to customer frustration and anxiety.    

In some of these cases, we’ve seen clients with up to 16 different security checks in one fraud customer journey. We’ve also seen dramatic differences in the language used by firms across their various communication channels, which can be confusing for customers and prevent fast and effortless resolutions. In both examples, the end-to-end journey was inefficient, and customers poorly rated the experience, despite the firms’ heavy investment into transformation. 

So how can firms approach a holistic transformation process that covers the entire customer journey, end-to-end, and functions successfully with a deep understanding of customer needs? 


Implementing end-to-end customer journey transformation


In our experience, there are four core elements to a successful customer-led transformation. 

Visualise the journey from the customer’s point of view

Take into account various customer personas, and focus on effort, failure points, actions, and emotions. Managing the customer journey is about creating insight and monitoring changes in customer behaviour to drive continuous data-led improvement, high performance, and positive customer experiences. 

Bring all parties together

All departments should play a part in the transformation and collaborate to create a customer-centric culture that harnesses the value of human capability. It’s all about ensuring that teams can complement one another’s abilities and employees are equipped with the skills, knowledge, and empowerment to do the right thing.  

Challenge the real need of the customer

When thinking of a mortgage, where does the customer journey start? Likely from the moment they consider moving house, not only when searching for financing. Recognising this means potentially including other actors outside of the organisation and then involving everyone in supporting that customer journey internally. 

Leverage data, insight, and supportive technology

Supportive technology can enable firms to harness new capabilities, create a seamless transition between solutions, optimise adoption through behavioural science, better predict consumer behaviour changes, and drive continuous improvement. In addition, the valuable data and insight gained from the right technology can allow proactive actions in response to customer behaviour and needs. 


Quality is free

In 1979, author and management theory contributor Phillip Crosby explored the concept that “quality is free”, surmising an investment in the right place to get things right first time, is always preferable to being exposed to the higher costs of fixing issues as they arise.   

In making the business case for customer journey-led transformation, financial services firms can develop great customer experiences while unlocking a wide range of benefits across the organisation –  in other words, by applying the idea that “quality is free”, you could say that “great customer experience is free”.  

How’s that for a business case?


Hervé Mazenod is Gobeyond Partners’ Managing Director, Financial Services, and has over 20 years of consulting experience, 17 of which he spent in FS. An engaging leader, Hervé has managed multiple global transformation programmes, helping banking, pensions, and insurance organisations solve complex customer journey problems with innovative solutions.

Find out more about Hervé here.

Reflections on the FCA Retail Banking Business Model Report

February 11, 2022 by

The final report from the FCA on retail banking business models, released in January, provides some valuable insight into the challenges, opportunities, and considerations for retail banks in the UK. The report reflects on the changes in consumer behaviour, the impact of the pandemic and the increasing market competition, highlighting key areas of considerations for all retail banks. In this summary, Vicki Butcher, Client Partner discusses the following four key areas of focus from the report and provides a series of recommendations for retail bank organisations and operational leaders to consider:

  1. Optimising branch networks to maintain channel choice and access to cash 
  1. Creating agility to maximise revenue opportunities 
  1. Scaling for growth in a digital bank 
  1. Harnessing the need for non-standard lending 

Optimising branches to maintain channel choice and ensuring access to cash 

The pandemic has certainly accelerated the level of change over the past two years, particularly in digital transformation. However, not all change is permanent.  Whilst it is likely we will see a continued rise in digital banking needs from consumers, the pace should be steadier.  As the FCA’s report highlights, customers who rely on cash, prefer a face-to-face service, or have specific needs, may not be able to, or wish to, use digital channels.  Consider the following: 

  • An Ofcom report in 2021 found that there are c1.5 million households in the UK with no internet access; whilst this is decreasing through government support and competitive tariffs, in the short-term there is still a need to provide non-digital financial services for these customers   
  • The FCA reported in 2021 that there are over 27 million adults in the UK showing characteristics of vulnerability; this ranges from physical and mental wellbeing to financial resilience. Branches can offer vulnerable customers a safe space to access support and advice.  

There is increasing focus to ensure that customers, regardless of their circumstances, are not adversely impacted and do not suffer poorer outcomes.  This is particularly important for those with a branch network where, over the past 5-6 years, we have seen nearly half of the UK’s branches close.  Whilst it may seem right to reduce costs through a reduction in footprint, branches are a critical part of ensuring access to cash and to treating customers fairly.   However, footfall is dwindling, with a recent survey by Webhelp identifying that only 17% of UK banking clients prefer a branch interaction, compared with 61% who selected online (the highest of all European countries surveyed).   

This presents a great opportunity to get creative, to optimise the use of physical space and redesign the branch network of the future to create enhanced customer experiences and new revenue streams.  Whilst some banks have already started to remove the traditional ‘counter’ style branch and created adaptable spaces, there is more that can be done.  For example, options beyond the traditional branch include: 

  • The creation of non-static spaces that take the bank to the customer, providing access to services in places with significant footfall, such as a counter within a supermarket, train station or a pop-up in the local shopping centre.  This could work well with a virtual or hybrid workforce, as colleagues would benefit from the flexibility of being based from different workplaces 
  • An expansion on the Post-Office counter arrangement model, where experiments have already been undertaken to trial shared banking hubs, with great initial results.  This approach could present further opportunities to engage with the local businesses and the community  

Where maintaining a branch network remains important, options include: 

  • Tailoring the branch space to create an environment that allows customers to go ‘behind the scenes’, and further engage with employees through their channel of choice 
  • Creating multi-functional, adaptable, open spaces which could be hired for events and functions or, support ‘Levelling Up’ by providing access to broadband or PCs for those who do not have access at home  

Creating agility to maximise revenue opportunity 

The FCA’s report highlighted the growing revenue pressure facing the banking sector. With net interest margins falling and the continued focus on managing operating costs, it is increasingly important for banks to look across their product set and find new ways to generate income.   

The report showcases examples of businesses who have capitalised on the impact of the pandemic (e.g. Starling and Monzo), who offered start-up support and focused on BCA (Business Current Accounts).  These actions have raised the market share of both banks in recent years. 

In the mortgage market there are high levels of competition on interest rates, with record rates on products announced recently. The margin on mortgages, with funding levels remaining low, has helped banks increase their revenue. However, as financial stress for customers intensifies with continued rises in interest rates, the increased revenue potential may be short-term. 

This ability to identify market opportunities and quickly respond with ‘fast-track’ solutions will be essential.  To larger banks or those with legacy infrastructure, this may feel like a large undertaking.  The complexity built over time, especially around compliance and regulatory requirements, could result in internal bureaucracy restricting the ability to move quickly.  Progress can be made though, for example: 

  • Create a fast-track internal decisioning process to take an opportunity to market quickly, simplifying the governance whilst also ensuring the right level of due diligence 
  • Create task force teams which include cross-business representation, like those we see for business continuity/incident management.  The aim here is to better facilitate design, development and implementation of new products/services 
  • Develop or secure flexible resourcing options which allow a rapid pivot to market, switching effort to a new product or service quickly

Digital banks scaling for growth 

In the UK, it is reported that over 14 million customers have a digital only bank account, increasing from 9% to 27% between 2019 and 2022.  Digital banks offer a simple and innovative mobile and web capability, and an easier process for those digitally savvy customers.  This increasing demand for customers to have access to seamless digital services puts incumbents at risk of losing market share.  However, there are challenges for digital only banks: 

  • There are barriers to digital adoption, particularly depending on the customers’ location.  Data in January showing the percentage of customers who have a digital only account by region, highlighted significant differences across the UK.  Londoners have the highest digital bank adoption (40%) whereas regions such as the Northern Ireland and the North of England are far less likely to open a digital-only account (20-25%)  
  • Competing with the well-known and highly established banks in the UK can be difficult, especially with customers who select their bank based on emotional values, such as trust and the ‘personal’ feeling they have towards a long-established brand 

The FCA’s report highlights that, whilst the value of digital only current account balances is increasing, they are still less likely to be the main bank for their customers. This results in lower balances, fewer transactions, and lower overdraft usage.  This is gradually improving as customers gain more experience and familiarity with the services a digital bank offers.  Gaining the trust of consumers will be important, capitalising on the ease of doing business and providing a broader range of services.  When developing a business model which enables growth, digital banks should consider: 

  • Increasing the product offering, including lending -– this will support businesses with further funding options and build a broader product set to attract new customers.  The increased offering also gives greater opportunity for cross-selling and diversification, whilst maximising revenue generation 
  • Embracing customers of all levels of digital maturity – developing a service proposition which caters for customers who have specific needs or are less experienced with digital banking, digital banks can leverage their human capability and provide dedicated, personalised services.  This provides an opportunity to create specialist support, which not only helps the customer but also provides staff with new ways to build skills and knowledge, helping to nurture and retain talent.  
  • Look to non-banking brands for inspiration – a recent Webhelp survey found that if Google, Apple, Facebook, Microsoft or Amazon were to start offering banking services, 46% customers said they would switch. These brands have become integrated into everyday life, whether for social connection, work or because of the ease of access.  Their approach to digital design could provide new opportunities to look differently at how banks interact with their customers.  

Harnessing the opportunity for greater non-standard lending options 

Specialist lenders and some smaller banks provide a growing need for non-standard lending, whether this be to those customers with a poorer credit history or those who have specific income circumstances.  Whilst there has been a steady increase in this type of lending, the impact of the pandemic on income and household costs are likely to accelerate the demand for non-standard lending.  This is supported in a 2021 poll where brokers predicted significant growth, particularly for complex credit and self-employed workers.  The specialist lending market also provides an opportunity for increased product offering, offering more flexibility than the traditional banks.   

We believe that this increased focus on non-standard lending on the part of some smaller lenders will increase choice for some consumers who might not have otherwise been able to get a mortgage. As such, we consider that the diversity of business models provided by smaller and more specialised lenders can be beneficial to consumers, provided lenders maintain sound underwriting standards.

FCA Report 2.41

There are two aspects to consider here; the relationship management model and a customer journey led approach. 

  1. For those lenders working closely with brokers, there is an opportunity to provide new and innovative relationship management models, which provide confidence in delivery with a personalised and dedicated service.  An example we’ve seen work well is a cell model, bringing together colleagues from the end-to-end journey and providing the broker with a single point of contact and/or a case manager.  This model yields profitability benefits, better leveraging human capability and reduced operating costs.  
  2. Analysing the end-to-end customer journey provides an assessment of the current state and draws focus to areas of opportunity.  This approach works particularly well in journeys with a heightened risk or require a specific level of compliance (e.g. Fraud).  The journey can be designed in a way which optimises each touchpoint and reduces the likelihood of overburdening the processes with complexity, whilst also protecting the customer and the organisation. 

The FCA’s report provides a wide range of insights. There are significant opportunities for banks in the UK to carry on and potentially re-orientate their transformation, further innovate and capitalise on customer behaviour changes and market opportunities – driving revenue, improving operations and enhancing the customer experience. 


Vicki Butcher has over twenty years’ experience working in financial services, with extensive expertise in leading operational teams to deliver high quality customer experiences.  Through a series of senior leadership roles, Vicki has a strong understanding of how to build and leverage internal capability to safely delivering commercial value.  Leading successful large scale transformation programmes across the world for firms such as HSBC, she understands how to deliver change quickly and effectively and the need to underpin this with a strong customer and cultural focus.   

Gobeyond Partners expands into APAC region

January 31, 2022 by

Enhancing the digital and transformation opportunities available to companies across Hong Kong, China, Malaysia, Singapore and Australia


Gobeyond Partners has announced its expansion into the APAC region. 

With over 20 years of experience in solving customer journey challenges and consulting, the move will provide further and more localised support to clients already based in APAC, alongside opening opportunities to engage with new clients headquartered in the region 

The move to create a base in APAC further strengthens an already global presence, represented by strong teams working through hubs across the UK, France, Germany and Turkey. 

For existing Gobeyond Partners clients, this move will further enhance the service they currently receive.  Clients will benefit from a greater ability to provide invaluable in-location support, access to an even greater level of resources, experience and in-depth APAC market knowledge, with the greater flexibility and improved project deliverability that comes from the being in closer proximity. 

New and prospective clients will benefit in the same ways, whilst having the opportunity to more easily build strong, long-term relationships with the Gobeyond Partners team. 

Ali Fry has been appointed the Managing Director of Gobeyond Partners for the APAC region. Ali brings with him an impressive consulting background in customer journey transformation, leading programmes in Africa, Asia, Europe, the UK and the USA; he and his team will develop Gobeyond Partners’ client portfolio across Banking and Finance, Insurance and Hi-Tech Business Process Outsourcing. 


Mark Palmer, CEO of Gobeyond Partners comments on the expansion: 

“We have delivered work for clients across APAC for a number of years and we’re delighted to realise a long-held ambition to create local teams across multiple locations in the region.  We now have colleagues based in Hong Kong, Kuala Lumpur and Singapore, all with the expertise to support APAC clients in developing their digital channel strategies and executing their transformation programmes – ensuring they can successfully navigate the complex landscape that many continue to face.” 

Ali Fry, MD for the APAC region continues: 

“I am proud to be leading our team in APAC region.  From further strengthening our existing relationships and enhancing the delivery of their established programmes, to engaging with new, prospective clients and understanding how we can support them with the acceleration of their digital customer journey strategies, it promises to be an incredibly exciting time for me personally and the Gobeyond Partners business as a whole” 

Gobeyond Partners are proud members of the Webhelp group, which enriches customer experience and designs business solutions that create value for the world’s most exciting brands. Gobeyond Partners will therefore also be working closely alongside Webhelp and its clients to support their transformation agendas. 

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