How Accenture Created Japan’s First Digital Bank
Minna Bank is Japan’s first digital bank and is a world-first in featuring a cloud-banking system. Its conception comes at a time when the finance and banking industry is experiencing disruption and paradigm shifts that challenge business models and consumer experiences. In this digital transformation, Accenture Song adopted a holistic approach that looked at business, technology and customer experience development to address the future of banking.
According to Minna Bank, the number of customers visiting traditional branches has decreased by 40% over the past 10 years, but the number of Internet banking users has increased 2.4 times over the same period. This change in consumer behaviour signalled a time of change for the banking corporation.
“Off the back of the establishment of the platform company, iBank Marketing Corporation, Fukuoka Financial Group (FFG) wanted to continue to provide new value in the banking industry. In particular, they wanted to be able to evolve for modern customers, especially Japan’s digital natives who were increasingly averse to a brick-and-mortar banking experience.
“Rather than just adding a basic app or website to its traditional banking structure, the company wanted an entirely new model that put technology at its core. This set the foundation for conversations and ideation around Minna Bank, a purpose-built cloud-based bank,” says Yoo Taehan, design director of Accenture Song.
Minna Bank president & CEO Kenichi Nagayoshi and Yoo Taehan, design director for Accenture Song
Taehan adds that the traditional banking industry has been slow to embrace experience-led business transformation. “Fuelled by a common desire to invoke change in this industry, the team redefined every aspect of the brand’s creative and service, giving birth to Japan’s first-ever digital bank that was truly for everyone (“Minna” in Japanese means “everyone”). The experience-led approach where the overall brand experience would guide the business direction was crucial to Minna Bank’s journey.
The Accenture team comprised strategy consultants and financial services experts who looked into the business design and development of the banking services architecture; technology experts who built and designed the overall system; and designers from Accenture Song who were responsible for customer profile understanding and development of the Minna Bank application.
LBB speaks to Accenture’s Taehan and Kentaro Mori, banking lead for Accenture Japan Strategy & Consulting, and Minna Bank’s president & CEO Kenichi Nagayoshi.
Kentaro Mori, banking lead for Accenture Japan Strategy & Consulting
LBB> What were the key priorities and issues being addressed in the digital transformation?
Taehan> A few issues plagued the traditional banking industry in Japan. For instance, opening a bank account is a time-consuming process often caused by lengthy and manual documentation verification. The lack of focus on user experience and interface adds friction to the overall banking experience, affecting user understanding and breaking the flow. High costs associated with architecture modernisation, legacy systems and on-premises financial systems added to the list of challenges. Not to mention strict laws that hinder industry evolution.
To attract the younger generation, we needed to help Minna Bank overcome these issues and, at the same time, make it an attractive bank – and brand – for the younger generation/digital natives who have limited desire to step into a brick-and-mortar institution.
LBB> Why isn’t cloud banking systems more widely implemented, and how did Accenture bridge that hurdle? What considerations had to be in place and how did you address them?
Kentaro> Cloud adoption has been slow in the banking industry due to strict regulations and cyberattack risks. Legacy systems also make the transition to the cloud tricky. Until recently, many incumbent banks focused on a digital transformation that would migrate their current structures and services onto a digital infrastructure with a user-friendly interface. This was what they believed they had to do to compete against neobanks that were offering traditional banking products and services but using a more convenient digital approach that tech-savvy customers were eager to try. However, the banking landscape was evolving in much more complex ways that some incumbents have yet to address. To meet rapidly changing customer expectations in Japan, cloud adoption had to be considered and implemented.
Kenichi> We lacked expertise in design, engineering, systems, data and digital transformation, the foundation for which we needed to be that digital technology company that provides financial services. As there wasn’t a suitable platform for a digital bank, we decided to create our own bank – in the cloud – after speaking with Accenture. The right partner was found in Accenture due to their global digital expertise across technology, design and data analytics. Accenture’s capabilities, combined with their strong execution, enabled us to launch our service at an overwhelming speed while in the thick of the pandemic.
Source: Minna Bank
LBB> What key functions were supported and what were the advantages gained as a result?
Taehan> We focused on redefining the experience for three primary banking functions: financial intermediation, credit creation, and settlement. To help the bank deliver on its mission to "deliver valuable connections to everyone," we approached the work and focused on creating value for people rather than products.
One key thing we did was to eliminate as many operational inefficiencies as possible. Minna Bank is unique in that it is the first digital bank in Japan to provide an entire repertoire of financial services via a smartphone application.
To pursue a “frictionless” user experience, we “let the user decide” i.e., allowing them to decide when, where and how to bank. For example, opening a bank account is no longer a trip to the physical bank and an endless waiting game. With Minna Bank, all you have to do is a video call on your smartphone and your application can be completed in less than 10 minutes. There is no hassle of paperwork or any signatory required.
Financial information is often communicated in a complicated manner with long-drawn processes and a flood of information in small-sized text. We followed the general rule of “at one glance” and simplified information-sharing by ensuring that there was only “one task on one screen” so users would not be confused and could intuitively manage their money through clear and direct prompts. The simple black-and-white interface with friendly iconography brought the essence of a great user experience to life.
Finally, we ensured that Minna Bank was speaking “in user’s language” i.e., free of banking jargon. Account balance, savings account, overdraft – what if banking terminology was made easy-to-understand? This was exactly what “Box”, “Wallet”, and “Cover” did. Instead of calling the first touchpoint the “Home Page”, we named it “Wallet”. “Box” allows users to manage their money according to purpose and needs.
Within the first year after the bank’s May 2021 launch, it attracted more than 1 million downloads, and 400,000 customers opened accounts.
The whole organisation also needed to be rewired so that critical functions could reap the intended benefits and achieve the above results. Helping Minna Bank build its core banking system in the cloud server allowed them to use data and technology to deliver hyper-personalised options to every customer. Putting its customers at the core of its experience was central to its business.
Source: Minna Bank
LBB> What had to be considered in terms of the demographic targeted by the bank and how was the bank positioned?
Taehan> Minna Bank was designed for “digital natives” who do not desire to enter a brick-and-mortar institution. Our research has shown that they are also not interested in banking-related matters; find it a complicated and formal affair; and would rather not think about it. It was important for us to approach the topic from a “non-banking/ financial” lens. We knew it was not enough to be a trustworthy or beneficial bank for customers. Minna Bank needed to become a bank that customers would want to enter, like to keep and love to have.
So, we looked into their interests, lifestyles and cultures and found that they loved fashion and art and thrived on social media. We transformed the essence of what they loved into Minna Bank’s services. Many of Minna Bank’s users feel that minimalist living is fashionable and comfortable. They were drawn to calm tones and interior designs. Simple, monotone fashion has become a standard too. They also loved comics, animation and art.
From a brand design perspective, we adopted a simple black-and-white interface with friendly iconography. The modern and timeless monochromatic theme contrasted the often loud and colourful advertising on social media and allowed the brand to stand out.
Rather than using literal photographs to showcase the experience, illustrations created a more casual environment and invoked inspiration.
We also created promotional items to ensure stickiness in Minna Bank’s customers’ lives and continued engagement.
This strategy that centered heavily on creativity makes Minna Bank a unique institution where it has moved past the traditional image of a bank – nobody thinks of it as a bank at first sight but as a modern service. We broke the standard, created a new culture in banking, and bridged the gap between digital natives and the financial industry – something that was never done before in Japan.
Source: Minna Bank
LBB> What other multipronged approaches were employed as part of the bank’s rebranding and in maximising publicity?
Kenichi> “Minna" means “everyone” in Japanese, which includes our customers and employees. At Minna Bank, we pride ourselves on growing with our people and customers. Aligned to this, the bank valued communication channels that allowed us to continue to listen to customers' opinions, such as through our customer support center, as well as reviews and comments on the web. We also actively employed social media and networking sites for promotion. The social platforms also effectively tracked and addressed our customers’ suggestions regarding usage and usability. An "Everyone's Voice Committee" was also developed to listen to user feedback for service improvement and innovation.
LBB> What other activations were in place to generate the desired change in consumer behavior and the desired call to action? What kind of results did they generate?
Kenichi> The “Box” feature in the Minna Bank application allowed customers to create multiple unique boxes within their savings accounts. We created a "Cheer Box" through this feature for customers to support a specific soccer or e-sports team.
For every amount customers save into their “Cheer Box”, Minna Bank matches 1% to the team its customer supports. Minna Bank funds the donation so users can still support their favourite players and teams by saving money. This is a new way for financial institutions to engage and connect fans with their favourite team, which has gained popularity and is being deployed by soccer, baseball, swimming, and e-sports teams.
LBB> What were the key takeaways and learning points of this project with Minna Bank?
Taehan> Minna Bank was a project that focused on “deep simplicity”, where a one-size-fits-all experience would not work, and a true understanding of the target audience needed to be achieved. That way, necessary solutions can be implemented with the best interface and experience. By looking beyond a traditional banking model, Minna Bank has set itself up for an adaptable future that reaches customers with new needs.
Furthermore, in designing a bank for “everyone”, it was important for brands to rise above existing beliefs and assumptions and strive to understand the consumer from every angle and nuance. Diversity must be embedded in every aspect of the experience from end-to-end to represent the views of all stakeholders and minimize bias in products and services. The participation of a diverse working team from Accenture and Minna Bank’s management that greatly focused on putting customers at its core, allowed for the success we see today.
