14 Sep 2020

New IDC Report Reveals Contextual Banking Framework to Support Differentiated Customer Centric Strategies of Asia/Pacific Banks

SINGAPORE, September 15, 2020 – IDC’s recent report, IDC PlanScape: Contextual Banking in Asia/Pacific details the practical framework that banking or financial institutions need to implement contextual products, services, and experience for customers across marketing, sales, customer service, and operations. In the banking industry, implementing a contextual banking strategy creates an empathetic organization. IDC predicts that by the end of 2020 in Asia/Pacific*, investors will use specific measures based on platform participation, data value, and data use in customer engagements that will account to over 50% of valuations, and 65% of banks would have already succeeded in working with functional single-customer views.

“As the competition becomes increasingly fierce in the banking consumer market in Asia/Pacific*, banks must boost customer centric initiatives. Contextual banking – the next level of customer relationship – is realized through developing a deeper relationship with each customer based on trust from the past, present, and future,” says Handojo Triyanto, Lead for Customer Centricity at IDC Financial Insights Asia/Pacific.

The framework for contextual banking is based on one of existing IDC researches in the customer relations area. The research has resulted in a principle-based framework to design an empathetic organization or a contextual banking strategy. For implementation and assessment purposes, there is a need to have a practice-based framework to assess a bank’s existing capabilities. The framework consists of key principles extracting from the future of customers & consumers, then mapping to practical and relevant business and supporting processes of banking and financial service institutions.

Figure 1: Practice-Based Contextual Banking Framework

Other highlights from the report include:

  • The continuum of customer engagement and experience goes from the lowest level of indifferent, then impersonal, then targeted, then personalized, and finally, empathetic.
  • Banks must identify the circumstances that form their customers' setting in terms of how the customer can be fully understood and assessed.
  • Banks must have three capabilities in a data-driven banking model: sense and response of the customer's context; analytics to identify context and result in insights; and action to pass the insights to front-end systems or knowledgeable frontline actors.

The report also provides guidance for banks and financial services institutions in implementing contextual banking or financial services. Those advices start from strategy, that extends to capability, culture and organization, data and technology, compliance, and marketing.

IDC Financial Insights: Asia/Pacific Banking Customer Centricity program provides insights into the evolving needs of Asia/Pacific retail/consumer banking retail customers and guidelines on how banks are to respond to these trends. The program will give advice to technology buyers on the technology that supports the customer centricity agenda of the financial institution – particularly in the areas of customer relationship management (CRM), omni-experience and omni-channel solutions, and in loyalty management. To learn more, contact Michael Araneta at maraneta@idc.com or click HERE.

For more information on this report, please contact Handojo Triyanto at htriyanto@idc.com. For media queries, please contact Tessa Rago at trago@idc.com or Alvin Afuang at aafuang@idc.com.

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About IDC Financial Insights

IDC Financial Insights assists financial service businesses and IT leaders, as well as the suppliers who serve them, in making more effective technology decisions by providing accurate, timely, and insightful fact-based research and consulting services. Staffed by senior analysts with decades of industry experience, our global research analyzes and advises on business and technology issues facing the banking, insurance, and securities and investments industries. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.

Coverage

Regions Covered

Asia Pacific


Topics Covered

Customer relationship management applications


Vertical Markets

Connected banking