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Branch Banking Innovation
Branch Banking Innovation Customer Experience and Emerging Technologies IBM Centre of Competence Banking Front Office Barcelona Despite the emphasis on alternative channels, bank customers remain branch loyal European Consumers Channel Preferences 2002 Currently, more than 60% of banking customers are not interested in using other channels than the branch channel 79% Personal Visit 11% In four of Europe’s leading banking markets – France, Spain, Germany and Italy – at least 80% of customers prefer personal bank visits over other available channels Phone This data is expected to change by 2008, when more than 50% of the banking population in Europe will normally access banking services through more than one channel. Europe 4% Sweden Internet/ E-mail Italy UK France 3% Spain Mail/ fax Germany 0% 20% 40% 60% 80% 100% Nevertheless, 40% of the European banking population will continue to use only the branch network, meaning that branches will lose volume but not their central role in the banking distribution system, as branch addicted clients will not disappear. Source: Financial Insigjts 2005 Branch Office transformation Business Driver Relationship Mgmt Center Wealth Mgmt Branch Sales Branch Self-Service Branch Old Bricks Time An Smart Branch is a Networked Service Center that drives Open Business Networks “thinly staffed collaborative service centers based on open standards and connected to internal or external service networks through integration hubs” Reinventing Branch Banking – Forrester Study Branch Transformation projects will change… People Today’s branch transformation projects are about making fundamental changes to the way business is done in the bank branch. Improved service Sales culture Productivity Collaboration – linkage with other channels Skills Processes Productivity Straight-through processing Multi-channel Paperless Premises Modern, open plan Zoned for different activities Retail oriented Customized Multiple formats In-store,financial center, assisted service … not just the technology… … but technology will support new business capabilities How a Bank makes its Branch smart? By creating a single customer view by understanding the right offer to make and how best to deliver advice to enhance customer’s wallet share By enabling technology to make networking of applications, processes, systems and people (employees & customers) easier By providing Branch employee with an integrated access to all the stuff related to its role, enhancing the tools and elements that the employee requires in daily business activities. By differencing the brand through a better ‘consumer’ experience Customer experience is important for business growth 92% of US executives rank Customer Experience as critical or very important, but only 38% do it (Forrester, 2003) 71% 85% of senior business leaders believe Customer Experience is the next battleground in retaining customers and growing of senior business leaders believe they could increase customer loyalty and market share by focusing their organization on integrated Customer Experience strategies and implementation Customer experiences are important to customers too 50% 70% 79% of bank customers would give their bank only two chances to fail before considering switching of retail banking customers indicate they have had at least one negative experience during the past year of consumers commit to a deeper product or service relationship with a brand after a satisfying experience What makes a good experience? A good experience is a subjective interpretation. It is therefore not possible to determine what makes a good experience for all people, but we can identify the four elements, which help create a good experience: The experience realm (physical facilities or a special atmosphere) Image (adds prestige to the experience or contributes to our identity in other ways) Other customers (the communities to which we belong contribute to the experience) The service encounter (the reception, the quality of the service, the personnel's attitude) Branch Office layout New layout that matches the branch office new characteristics and functions ƒSelf Service/Discovery Zone ƒReception Zone ƒTransactional Zone ƒSales/Advisory Zone Self Service/Discovery Zone Functions Channel integration, holistic customer experience Personalization (More used txs, etc) Cash and check deposit Marketing contents Offers/New products ads Ticketing/... Internet Banking Product simulators Local/Remote support Virtual agent/Avatar Accesibility Technology New ATM generation Kiosks/Pcs Digital Media Digital Telesurveillance RFID Smartcards/EMV Biometrics Web conference Projectors/LCD/TFT displays IP telephony Reception Zone Functions Central point of information Customers identification Queue buster Migration support to new channels/ features Dynamic information ƒNew products, offers, promotions, Local information, stock exchange, etc Technology PDA/Tablet PC/Thinkpad Role based integrated workplace CRM IP telephony WIFI/WLAN RFID Digital Media Digital Telesurveillance Collaboration Displays Advisory/Sales Zone Functions Relationship/Personalized selling Specific customer segments management Financial assessment/Simulations Complex product sales New customers acquisition Mobility Virtual Branch Technology Thinkpad/Tablet PC Role based integrated workplace CRM WIFI/WLAN IP Telephony Videoconference Collaboration Transactional Zone Technology Functions Singular payments/deposits Checks Control de vivencia Role based integrated workplace Integrated devices IP Telephony Biometrics (DSV) Digital Media Digital Telesurveillance Collaboration CRM Building the Smart Branch EMEA CoC Showroom inBarcelona Branch Office: Paperless branch Digital Advertisement Smart brochures Digital signature Speech recognition Video Conferencing Contact center<-> branch interaction (Joint calendar, intelligent call routing) Distributed data management E-Learning / Knowledge Management Collaboration tools Coin cashment / Cashless Assisted self service Enabling infrastructure: ATM integration Wireless (IP telephony) / Pervasive Kiosk integration RFID Smartcards, Cardreader Multichannel facilities: IP Telephony (XML applications, integration with CRM) Internet Banking Security (Identity, Single management solution) Virtual Branch Video surveillance Mobile Banking (Sales force automation) Corporate Communications Contact Center / Call Center services
