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No-one finds making payments sexy. Nobody wakes up in the morning saying, “I can’t wait to make a payment today.” It's just a necessary action to get something, go somewhere, do something. However, it’s important that we help people reduce the effort it takes to make a payment. If we can make that transaction less painful, then we’ve succeeded. If it’s more convenient to the customer and adds value - then we’ve really succeeded.
In Denmark, digital payments are the rule rather than the exception. Only a small minority of Danes use cash; the majority only use cards. In fact, there are two cards for every living Dane and now they can make payments using mobile phones too. It’s safe to say that we have succeeded in the near-total digitization of payments.
The reason for this high-level of acceptance is a unified banking sector working together to create joint products and services. This has made it easy and transparent for the customer to understand the payment options available to them.
But the pace of change in customer behavior today exceeds the pace of product evolution. Customers demand a range of solutions as broad and as varied as their lifestyles. They want products that are relevant to their everyday challenges. For this reason, the payment industry in Denmark has evolved more in the past three years than it did in the preceding thirty.
When we looked at Jyske Bank’s payment products and services, we needed to shift the focus from “we” to “you”. Our tendency was to focus on the technical possibilities and solutions we could provide, rather than what the customer really wanted.
We discovered that our customers want to be in control. They want to see their card spending, they want to receive notifications and block payments. They want to make it easier to manage their spending. They want to create their own risk profile, suited to how confident they feel in using their cards.
And there was an interesting extra element: Danes really like to travel, and their fear of fraud is so negative that it inhibits their behavior. The threat of losing money, needing a new card issued, and a loss of confidence is too much of a risk for them. Instead, they’ll withdrawal some cash and leave their card at home, or bring it as an emergency option. Our customers want the confidence to use their card securely.
Working with Visa
With these challenges in mind, we approached Visa and worked together in partnership. Jyske and Visa collaborated on the design, development and testing of a new product that gives customers the control they want in a way that’s easy to use.
The teams were actually very small on both sides, highly skilled, and from the business and technology communities. This made the process smoother as everyone had the same information and understood what they were doing and why. Ideas and suggestions were quickly discussed and decided upon, because we all took part in the weekly collaboration meetings. As partners, we could combine our perspectives and create a richer experience for our customers.
The result: Giving control back to the customer
We created an app to give customers control over what they do with their card. They can turn their card on or off and control internet spending. We created specific help for travelers to set which countries to allow spending in. In turn, Visa created the ability to influence the card authorization according to how our customers set their controls.
In this way the customer 'creates their own card' with a profile that manages their spending in certain situations. They can change this profile anytime they like and with immediate effect.
Some customers are more risk-taking than others – some travel more. None of our customers are alike. By giving them the ability to set these controls, we’ve helped them create the sense of security that each customer wants. They want to regulate their own lives – and where and when they spend their money.
We’ve addressed these customer needs, but there are plenty of other issues, solutions, and improvements to be made. Even issues that the customers aren’t aware of right now. With Visa, we have a partner who understands our approach and wants to help us help our customers.
What is more important - money or value?
We bankers tend to focus on the business case. The numbers. This is important, but also need to consider value, and how we can better address the needs of our customers. This is what we want to stand out for. Customers don’t care about business cases or our profitability, they care about value.
Our goal is for our customers to have a positive payment experience – even if they don’t wake up thinking about it. We want to reduce card-not-present and magstripe fraud, and reduce card replacements. In turn, this will reduce calls to our customer support centre because we have empowered our customers in a way that our competitors have not.
Looking back – the whole build experience was a pleasure. We saw terrific commitment from the two small teams on both sides and built a solution faster than we thought possible. We’d never worked with external partners in this way, only internally. Now, it’s become our template for collaborative success.
Watch more on our working sessions: