{"id":87,"date":"2010-10-05T20:53:32","date_gmt":"2010-10-05T19:53:32","guid":{"rendered":"http:\/\/www.adendavies.com\/?p=87"},"modified":"2010-10-05T20:53:32","modified_gmt":"2010-10-05T19:53:32","slug":"tesco-bank-a-unique-opportunity","status":"publish","type":"post","link":"https:\/\/adendavies.co.uk\/?p=87","title":{"rendered":"Tesco Bank – A Unique Opportunity"},"content":{"rendered":"

\"\"<\/a>In 2010\/2011the UK will see at least 3 new high street banks.\u00a0 Metro Bank has already opened, Virgin Bank and most interestingly of all Tesco Bank should be along soon. \u00a0It is the Tesco bank that I am most looking forward to as I am fascinated by what they come to market with.\u00a0 They really are in a very unique position to offer something completely new in the banking sector.\u00a0 From an innovation point of view I crave new things especially ones that have the opportunity to move existing markets forward.\u00a0 They have a very powerful quad play in their armory.\u00a0 One..Tesco need no branches as they already all over the country. Two…they have one of the best loyalty schemes in the world (Tesco Clubcard), as well as being a great incentive to stay loyal to Tesco for groceries (and everything else they sell) it is also one of the great CRM data sources of our times.\u00a0 Three…They already have some advanced online services e.g. online grocery shopping and physical delivery. They have also embraced open APIs so hopefully this will lead to a wonderful new online banking experience, Four…They sell mobile devices and they sell THAT mobile device, which not only gives them a great sale incentive (Like a free iPhone with your bank account Sir?) it should also focus their mind on really delivering on the mobile front.<\/p>\n

Thinking into the future a little bit (lets very optimistically say January 2013) lets imagine a little Tesco Customer scenario.\u00a0 Lets call this mythical Tesco customer Barbara.\u00a0 First thing in the morning Barbara peruses her Tesco Bank account details on her Tesco freebie iPhone (Free when Barbara swapped her account, credit cards and mortgage to Tesco bank). \u00a0Barbara’s Tesco app has alerted her saying it is shopping day (based on when she usually does her shopping according to Clubcard) and that she is \u00a375 inside her monthly shopping budget on this time last month.\u00a0 Babs (we know her well enough by this point to abbreviate things) takes a look through her overall shopping totals for the month (lovely aggregation feature that one) and drills down into the detail of that shopping to see an aggregated view of the products she has bought that month (from Tesco of course).\u00a0 As she looks through the lists of items she has bought she can also see how many clubcard points she has accrued from each item.\u00a0 A lovely highlighted number in the corner shows new offers are available.\u00a0 A quick press and Babs can access this weeks clubcard offers and 2 for 1s that her local store has on offer. It also highlights offers against her usual shopping purchases and how much she will save this week along with how many clubcard points she could make.\u00a0 Babs transfers into the shopping section (or another app?) and updates her weekly shopping list with a few extra items including some of this weeks special offers and some replacement items for those out of stock in store (the app told her that as it knows Babs local store).\u00a0 Babs marks the shopping list complete and the app pushes the shopping list over to her husband Geoff so he can collect the shopping on his way home from work (he works nearer and finishes earlier than Babs).<\/p>\n

Geoff receives a push notification that the shopping list is ready.\u00a0 As Geoff reaches the store he receives notification of some extra offers on in store targeted especially to him (some fine ales on 3 for 2 and a cracking offer on some Camembert).\u00a0 Geoff scans the items in as he shops (the trolley has a lovely iPhone holder to make this easier) RFID tag details are picked up by the phone when Geoff holds the items next to the phone before they are placed in the trolley (the trolley is a series of reusable bags, that Geoff brought with him, held on hooks).\u00a0 He gets a little notification when the list has been completed (including his beer and cheese purchases).\u00a0 On his way Geoff sees a poster for a 32″ 3D Super HD TV for just \u00a3299 but the offer is out of stock at the moment so Geoff taps his phone against the poster and the item is added to his bill and will be delivered from Tesco Direct at a time slot of his convenience.\u00a0 He chooses 18:40 on Thursday.<\/p>\n

Geoff heads to the checkout where he walks straight through tapping the Tesco iPhone on a scanner, Geoff had previously selected the Pay via Tesco option which means the shopping to be paid for via the online authorisation Tesco have built, this interfaces directly to the Tesco bank account via the internet (therefore skipping those pesky charge inducing card networks).\u00a0 Geoff waits patiently for a millisecond while the transaction is completed and his receipt is uploaded into his Tesco iPhone App (So he has a guarantee for his new Telly), all the purchase details are uploaded against his account online and his new clubcard points are also added to his loyalty offset mortgage (100 points equals \u00a311 off the mortgage).\u00a0 While this takes place the checkout area scans his trolley to ensure the contents match the list passed by the phone.\u00a0\u00a0 This transaction is complete and Geoff heads to the car to load up the already bagged shopping and head home to get the dinner on.\u00a0 As he leaves the car park his fuel warning light comes on and this triggers an event on his phone to check the location and prices of the nearest fuel station.\u00a0 Unsurprisingly Tesco is the cheapest because as a customer of theirs he gets 5p off a litre and 10 clubcard points per litre.<\/p>\n

There you have one of my visions of the Tesco bank future.\u00a0 Exciting from a banking\/retailing\/innovation point of view yet also a bit worrying from the point of view of smaller retailers.<\/p>\n","protected":false},"excerpt":{"rendered":"

In 2010\/2011the UK will see at least 3 new high street banks.\u00a0 Metro Bank has already opened, Virgin Bank and most interestingly of all Tesco Bank should be along soon. \u00a0It is the Tesco bank that I am most looking forward to as I am fascinated by what they come to market with.\u00a0 They really […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[],"class_list":["post-87","post","type-post","status-publish","format-standard","hentry","category-articles","category-banking"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/87","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=87"}],"version-history":[{"count":0,"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/87\/revisions"}],"wp:attachment":[{"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=87"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=87"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adendavies.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=87"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}