What specific multi-channel initiatives has Key recently completed?
Ilijasic: We had a homegrown bill pay system that we’d taken as far as we could. We selected FIS [Jacksonville, Fla.] as bill pay partner and they worked closely with our other primary multi-channel partners – mFoundry [Larkspur, Calif.] for mobile applications and Fiserv [Brookfield, Wisc.] for our core systems.
Then we built a new solution, while retaining our "good funds model," that can be accessed either online or via mobile. In addition to introducing expedited payments and e-bills as new bill pay features, we also cut the typical time frame to pay a bill. We went from three days for electronic and five days for paper, to two and four days, respectively. Also, we improved the overall experience by making everything one click away, rather than several clicks as before.
Not surprisingly, the biggest challenge during the process was moving off a home-grown system. As an organization, we had to rethink everything – from the user interface to back-end monitoring. And, we had to educate our customers and our bankers, which we did through online "how-to" and informational videos as well as traditional communications.
So far, adoption has been strong since our launch last fall. Despite minimal marketing, about 30 percent of our electronic banking customers are bill pay customers. Also, month-over-month we’re seeing steady increases in eBills presented, expedited payments issued and electronic payments processed.
How about mobile, what specific initiatives has Key recently completed?
Ilijasic: Our most recent initiative is mobile apps, which we just rolled out for Apple, Android and Blackberry. All of them are far exceeding expectations in terms of the number of downloads and usage – app users log in between two and three times a week, so they really are actively engaged with us. Best of all, there’s been no drop off in demand for other channels.
For apps, getting bankers accustomed to demonstrating them has been the biggest challenge. Bankers need to be comfortable whipping out a phone, turning it around to the customer and saying "here's how I do it."
What's next for Key, how will you be keeping your multi-channel strategies fresh?
Ilijasic: It's a matter of staying on top of consumer demand. For mobile, we’re looking at P2P and remote deposit capture.
More broadly, we're considering the needs of the Millennials and the mass affluent. It’s important to not only customize and optimize experiences in all channels based on the interface but also WHO the target audience is. For example, we’ve studied Millennials they may want to work with you differently, and perhaps through a completely different interface – even on the same device – than a Baby Boomer or Gen-Xer.
And, I'm sure in six months or a year there will even be something new for us to investigate on the horizon.
Bottom-line, how is Key's mobile strategy benefiting your overall multi-channel approach?
Ilijasic: We know that the customers who use mobile channels are more engaged. And, the more engaged they are, the more loyal they are. There’s a clear benefit to that.