Jahangiri: ING DIRECT recently launched an iPhone-enabled application offering customers mobile banking services. What has been the customer response thus far; and how do you see the mobile banking channel evolving at ING DIRECT?


McGuiness: So far take up of our mobile applications has been greater than expected.  We have a continual increase in usage month on month since we launched in November last year.  Whilst mobile traffic is still far less than website traffic we see the gap reducing over time as the technology in Smartphones improves and becomes more standardised.  For us, creating applications for the mobile that address customer’s needs and are easy to use is what’s important.  Going forward we want to really develop applications that are better suited to the features and purpose of mobile phone devices.


Jahangiri: What are your IT priorities for the next 12 to 18 months?


McGuiness: Our IT priorities over the next 12-18 months are looking at how we can improve cross-channel support between our web and Contact Centre channels.  As a direct bank we don’t see why customers can’t have a better and faster experience online than they can from going to a branch.  We are also exploring tools and services that enhance the customer experience, instil trust and help customers manage their finances.  We want to continue to provide an online service that is functionally rich, secure, has features customers need but at the same time keeping it simple and easy – this is the challenge will continue to strive to overcome.


Jahangiri: What kind of technologies will be critical in driving ING DIRECT’S online model moving forward?


McGuiness: We would like to explore and expand our use of rich user interfaces, interactivity and multimedia such as videos.  Our mobile channel and what that will bring with new and different handsets and other such portable devices is something we are continuing to investigate.  Other areas such as broadening our notifications platforms for SMS and emails, for example, will ensure we keep the customer informed through every interaction, and tailoring the interaction to what suits the customer’s needs.


Jahangiri: How does innovation play a role in sustaining ING DIRECT’S commercial lead as an internet-only bank?


McGuiness: ING DIRECT launched just over 10 years ago by creating the high interest online savings account market with our Savings Maximiser product, from that time and being the first direct bank in Australia, innovation has played a key role in our success.  By doing things differently and looking at better ways to offer our customers value and making things easy we have been able to remain competitive in this market growing to currently the 5th largest retail bank in Australia. 


Jahangiri: From a wider perspective, what are some of the more interesting IT trends emerging in eBusiness?


McGuiness: Security is of course of the upmost importance to us. The explosion of electronic payments has attracted its share of criminals attempting to take advantage of some customers.  Customer trust in the channel is crucial and we take security very seriously from customer authentication to the numerous security measures we have in place behind the scenes.  We also use and share best practices from our eight other ING DIRECT offices around the world.


We’re starting to see the third phase of electronic payments evolving (the first two being the rise of the ATM and Credit Card/PayPal style payments over the web) with the overthrow of the small cash payment market by electronic payments. Contactless payments via near field devices (NFD’s) are going to become a significant replacement for traditional cash transactions.


Also, we’re seeing an interesting battle being played out on the web between proprietary and ubiquitous technologies such as Adobe Flash and Microsoft Silverlight and open standards such as HTML5, and the recent spat between Apple and Adobe is just one example of that. While open standards are always attractive, the key challenge that HTML5 is going to have to overcome is not the quality of the standard itself, rather the skill with which it is implemented in the various browsers – despite all the new things HTML5 is going to enable, if we’re still coding different versions for different browsers, it’s not going to be seen as a success by the industry.


Jahangiri: To what extent can this human element of customer service be transferred online?


McGuiness: With the technology currently available in the market there is a lot that can be done to transfer the human element online, it is about really being innovative about how you design your processes and the customer interaction.  The customer experience is key.  If you can make it usable, easy and personal for the customer, online processes are generally preferred over other channels.  They are usually quicker for customers; you can see results in real-time, and the bank saves money in back-office processing.  This is where we see ING DIRECT having its competitive advantage. 


Customers don’t like queuing at branches and if we can remove the need for a branch and allow customers to do their banking when they want and how they want in an easy and quick manner we not only improve the service we offer to our customers, we can pass on the savings from physical infrastructure costs in the way of value – low fees and competitive interest rates.


Jahangiri: How do you see innovation changing your customers’ banking consumption habits?


McGuiness: Whether it is through product or service innovation, we see customers being given a real choice in how they bank - creating competition in the market.  We see customers having the choice on how they wish to interact with us through different channels or in different ways depending on what suits them at a particular point in time.  We are all becoming increasingly time poor, so a bank that can make every interaction easy, no fuss and can offer great value products I believe will be the winner at the end of the day.  To do this innovation plays an important part in all that we do from our products, the way we open an account, like we were the first to open an account straight-through without the need for a paper form or signatures, and every service interaction we offer customers helping them manage their finances.


Jahangiri: In your view, what are some of the potential disruptions of social media?


McGuiness: Social media has created a new set of expectations for customers.  Customers are now becoming immune to push communications, preferring to take the advice of a friend or family member over branded sites, and now are becoming more comfortable in expressing their opinions.   This means that traditional forms of communication and advertising are becoming less effective.  However, whilst there is a definite rise in the use of social media, it’s still a very immature space for financial services, and still has some way to go. So it is an area we continue to monitor and experiment in.


Jahangiri: What keeps you motivated about your job – is it the technology or the sector?


McGuiness: It might be taking the easy way out but to me it is both.  It is not just about the technology but how you use the technology to make banking for customers more personal and relevant, not just about checking your balance or performing a transaction. In general, the technology exists or isn’t far away to do anything you can dream of.  I think only recently we are seeing the true potential of the web and what it can bring, and how this ‘forever connected’ mindset means on how individuals live their everyday lives.


Jahangiri: Every IT leader, particularly at your level, has a legacy they wish to be remembered for. What is yours?


McGuiness: Asking why, and being innovative in the way we use technology to meet customers’ needs.  The importance of the web and its potential is something that I strongly advocate for within my organisation and hope that this makes a difference not just for the success of ING DIRECT but for our customers.