Customer insights are crucial" for executing payment innovation, according to Kenneth Tan, head of debit cards and vice president at Singapores OCBC Bank.
Tan added that testing and learning from customers ideas, as well as collaborative execution are further key steps in the process of creating innovative products, such as the OCBC YES! Card and a Gen Y-specific banking model.
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Speaking at VRLs Retail Banking / Payment Innovations 2011 conference in Singapore, Tan explained that in addition to customer engagement, innovation in payments involves delivering services that are simple and relevant for consumers, rather than just being fancy.
Most recently, the bank launched a banking segment specifically for its Generation Y customers.
Called Frank by OCBC, the bank promises to engage "the youth and young working adults segment in non-traditional ways" with its new banking model.
OCBC has about 748,000 youths and young working adults as customers and has moved its FRANK brand image away from its traditional, serious corporate image.
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Generation-specific channels
Gen Y customers now have their own branches, which look different to the traditional branch and is "modelled after a shopping experience that youths and young working adults are familiar with, such as shopping for a gadget or fashion item", the bank said.
In addtion, OCBC transformed its two branches at two universities in Singapore into Frank retail branches and is planning to open more such branches in shopping centres.
OCBC has also rolled out a specific website, www.FRANKbyOCBC.com, which links Gen Y’s social media interest with banking. On top of that, OCBC announced that Facebook will also be used as a channel for promotions and tips that go beyond marketing financial products.
This will include tips on how to prepare for job interviews, for instance, the bank said.
Debit and credit cards
OCBC has undertaken extensive research on youth psychology and behaviour and found that most valued the freedom for self-expression, which is why the bank is giving young customers the opportunity to choose the design of their cards from 100 templates. Customers can then also change the design in exchange for a fee of between S$10 to S$50.
The Frank debit card was introduced on 19 May and a credit card version will be rolled out later on this year.
FRANK accounts
These accounts will offer higher interest rates than traditional savings accounts and as of July 2011, clients will be able to create sub-accounts, or savings jars, as OCBC called it, to categorise their savings.
The account will be free and requires no minimum balance for anybody aged under 26 years of age.
Launched in 2010, the OCBC YES! Card combines a contactless Visa payWave debit card with ATM, NETS and EZ-Link services.
In 2010, OCBC also launched the OCBC Elite World Card, which is targeted at high net worth individuals and provides features, such as a 24-hour global concierge service and privileged access to exclusive events.
