Omni-channel bank - Huawei Enterprise

Monday, May 26, 2014
Omni-Channel Bank:
Convenient and Interactive
Financial Services
Challenges faced by the traditional financial industry

Half a century ago, computers were applied to the financial system, so manual accounting was
abandoned. At present, the information and communications technology (ICT), such as cloud
computing, big data, and multimedia, thoroughly overturns the banking mode that has lasted for
over 200 years. The financial industry is being deeply integrated with the ICT and Internet
technologies.

As the capital medium, the bank is required to provide a transaction platform that can cope with
the challenges brought by the emerging financial enterprises. The banking revenue structure is
also challenged by the changing ways for interaction between banks and customers.

It is predicted that a new financial operation and supervision mechanism will come into being
within 20 years. The new mechanism will be different from the indirect investment of the
commercial bank and the direct investment of the capital market.
1
Reforms brought by the Internet-based financial mode –
we have stepped into the ubiquitous financial age

Internet spirits: openness, equality, collaboration, and sharing

Internet-based financial mode:
•
Lowers financial transaction costs and expands financial service coverage to benefit every
financial customer.

•
Accelerates the transformation to financial disintermediation.
•
Brings changes on the transaction object and structure and promotes financial democracy.
Representative enterprises:
•
In China: Tencent and Alibaba
•
Outside China: INGDirect and CharlesSchwab
2
Financial Internet – electronic revolution of
financial service channels

Internet applied to the traditional financial industry
•
In 2012, individual online banking services replace 56% counter services and corporate online
banking services replace 65.8% counter services.
•
The financial enterprises are dedicated to innovating the service, sales, product development,
and payment modes. The financial industry (bank as a representative) witnesses a channel
revolution by launching the online banking, electronic banking, and electronic business
platform.

Representative enterprises:
•
In China: Ping An Bank and China Merchants Bank
•
Outside China: Bank of America and J.P.Morgan
3
Multi-channel retail banking services – focus on
multi-channel integration
Retail banking services play an important role in creating
revenues for international banks.
The fast service development brings multiple operation modes
to promote channel development and multi-channel integration.
1700%
84%
Retail loan growth rate
Self-service device usage
Growth rate of the retail loan scale
in China from 2000 to 2012
In 2011, the self-service device
usage in China increased to
84% from 53% in 2007.
470%
70%
Retail deposit growth rate
Online banking usage
Growth rate of the retail deposit scale
in China from 2000 to 2012
Online banking usage in China
demonstrated in the advanced attribute
data of iUserTracker in August 2011
No.2
42%
Retail bank industry
Telebanking usage rate
In 2015, China will rank as the global second
retail bank industry next to the USA.
In 2011, the telebanking usage in
China increased to 42%.
Source 1: Accenture
Source 2: iResearch
4
Evolution: customer-centric experience, multichannel integration, and differentiated services
Quality resources
Investment team
Private
bank
Deposits
More-to-one service
Distinguished
experience
Credit card
Distinguished
Dedicated resources
guest room
Foreign
exchange
Loan
Fund
Heartfelt caring
Remote service
Consultant team
service
VIP
One-to-one service
Dedicated experience
Unified
customer
view
Distinguished
guest room
Dedicated
consultant service
Financial
management
consultant
Important
customer
One-to-more service
Consultant
experience
Counter resources
Counter service
Fast consulting
service
Gold
Self-service
terminal
Others
Common customer
Open resources
Self-service
Fast and convenient
Easy self-service
5
Omni-channel bank – an inevitable trend of financial
services and a very beginning of channel evolution
One channel associated with multiple products:
transaction information is stored in a specific
channel
Channels decoupled from product modules:
transaction information is managed and analyzed in
centralized mode and displayed as required
Self-service
Self-service
Retail
Retail
Mobile banking
Mobile banking
Intermediate service
Online banking
Intermediate service
Online banking
Transaction
Transaction
Settlement
Telebanking
Settlement
Telebanking
Bond
Bond
Mortgage
Mortgage
POS
Supply chain finance
Bank card
Bank card
ATM
ATM
Outlet
Outlet



Supply chain finance
POS
Physical outlet: smaller outlet, more flexible layout, and more "shop in shop" deployment
Emerging channel: more interaction with customers, sales of more products in cross mode, and attraction of more
assets from customers
Problems: multi-channel layout, management, and coordination
6
Overview of Huawei financial industry solution
Infrastructure
DR center in the
same city



Data center
infrastructure
Data center
network
Three centers in
two places
Contact
center
Remote disaster
recovery (DR)
center
Data center
Channel
optimization
Branch
Provincial-level
branch in
another city


Active data
center

Headquarters
Shopping mall
WAN

Wide area
network (WAN)
integration and
security
R&D center

Outle
t
Community/Out
door
Integrated
campus network
Desktop office
security


Mobile marketing
Remote banking
Remote financial
management
consultant
Channel integration

7
Telebanking
center
Innovative outlet
Invoice image
management
Channel innovation

Campus & outlet

Omni-channel
bank
Multimedia
collaborative
office
One VTC platform for omni-channel access
Core banking system
3G network
Internet
Intranet
Ultra HD
Financial management consulting
Remote face-to-face service
Mobile banking
Video mobile phone
• Allows customers to use Android and iOS
mobile phones to have video calls with remote
tellers for obtaining banking services.
Mobile terminal
• Allows customers to use mobile terminals to
have video calls with remote tellers through
the 3G/4G network and connects to the ID
card identification module to identify the
customer identity.
• Integrates the ID card identification module
and printing module into the laptop for tellers
to provide services for customers at home.
Community banking
VTM terminal
• Supports access from VTMs in communities
and shopping malls to provide 24/7 services.
Remote loan/financial management terminal
• Supports access from HD terminals (for
example, 65-inch large screen in the VIP room)
to provide loan and financial management
services for small- and medium-sized
enterprises (SMEs).
8
Home banking
Common and all-in-one PCs
• Supports access from common and
all-in-one PCs for which the online
banking control can be installed. The
PCs then use the control to access
the VTC and have video calls with
tellers.
MediaQ and smart TV
• Expands banking services to homes
VTM fixed terminal deployed at an outlet to build
an intelligent outlet and mitigate counter services
Existing outlet
reconstruction



Focus on loan
services
Maintenance of
customer
relationships
Proactive marketing
platform
Remote teller terminal
Remote loan terminal





Professional consulting
services for high-level
customers
Remote loan service
Placed in the high-tech
park populated with
enterprises
New intelligent outlet


9
VTM terminal placed here
Equipped with security guards
Mitigated counter services
24/7 services
VTM fixed terminal deployed outside an outlet to provide
convenient and considerate financial services
Integrated and function-rich solution

Compared with building an outlet, deploying a
VTM costs much less time. A VTM, a mini
business hall, can be deployed in the office
building, community, 24/7 self-service bank,
and existing bank outlet.
Diversified banking services

A VTM provides an impressive array of services,
including card issuing, financial management, IC
card payment, third-party depository, check
service, and online banking/telebanking
registration and change.
10
VTM mobile terminal deployed at an outlet to enhance
customer experience and share expert resources
Application scenarios:
1.
Allows customers waiting in queues to fill in forms in
advance.
2.
Introduces financial products to customers through
the audio and video collaboration platform.
11
VTM mobile terminal used by account managers to
provide services for customers onsite
Bring VTM mobile terminals
to provide onsite services
Account managers bring VTM mobile terminals, such as laptops and tablets, to go where
customers reside and provide onsite services, for example, card issuing.
12
Enterprise
customer/VIP
customer
VTM mobile terminal used by customers to obtain
teller services anytime and anywhere
Virtual counter service
Provides customers with familiar services but different
experience.
Professional video service
Helps customers solve problems immediately to deliver
customer-centric experience.
Standard service process
Provides standard service processes that are easy to use.
Larger service coverage
Allows customers to use terminals such as tablets to access
the video business hall anytime and anywhere.
3A services
Allows customers to enjoy banking services anywhere, such as
at home, in offices, during travels, and in coffee houses.
13
VTM mobile terminal connected to Huawei MediaQ
to extend banking services to home
Home banking sets
LCD TV: HD video
Huawei MediaQ:
multimedia interaction
Camera: HD camera
Multifunctional remote
control: wireless microphone

Provides private and convenient services
for customers at home.
14
Constructing the unified multimedia collaboration platform
Application
integration
Operation
management
Channel
integration
VTA application Unified network Monitoring and
server
management
inspection
Report
Video
service
Multimedia
collaboration
platform
Multimedia
access
gateway
Call processing
server
Remote
collaboration
Media Control Meeting server
Center (MCC)
Management
supervision
Internet access
server
Audio and video
gateway
Security
protection
Access
terminal
Ultrabook
PAD
Mobile
phone
TV
VTM
15
Computer
Platform
openness
HD video for face-to-face service experience

Supports three call modes: audio-only, one-way video, and two-way video.

Supports video resolution from CIF to 1080p and allows a VTM and a VTA with different video resolutions to set up calls.
16
Intelligently allocating service requests to provide
more heartfelt services
Unified queuing
Saving labor costs at off-peak hours
Remote teller
Financial management
consultant

Enables a teller to serve multiple customers to save
workforce.
Queuing at peak hours

Media Control
Center (MCC)
Media
Collaboration
Management
System (MCMS)
Plays product promotion video for queuing
customers when all tellers are busy.
Meeting server
Call access
system
Intelligent routing
Purchasing
financial
products
Registering
accounts
Service type-based service

Groups tellers by service type to provide more
professional services.
Customer level-based service

Ultrabook
PAD
Mobile
phone
TV
Computer
VTM
17
Provides services for VIP customers in priority.
Proactive marketing for enhanced customer experience
MCMS
MCC
MS
Database
Form filling assistance

When a customer needs to fill in an application
form for subscribing to a service, a remote
Ultrabook
teller can help the customer fill in the form.
Product promotion

PAD
Mobile
phone
A teller can push information to the customer's
desktop and demonstrate products to the
customer through some aids, for example,
laser pointer. This function especially applies
Computer
to the scenario where tellers introduce financial
products to customers.
18
VTM
TV
Real-time interaction for counter-like experience
When helping customers process services, remote tellers can use the auxiliary means, such as laser
pointer, drawing pen, document sharing, and e-Whiteboard, to illustrate service information and
annotate important content.
19
Diversified inspection and monitoring methods
available for improving service quality
Service
recurrence

Onsite
surveillance
Service recurrence
Onsite supervision
20
Monitoring
statistics
Monitoring statistics
Synchronous recording and playback of audio,
video, and screen for service tracing in the future
Record query
1. Queries operation records of remote tellers based on the
specified criteria.
2. Displays all service information, including serial number,
employee ID, VTM ID, service type, service duration,
evaluation status, start time, and end time.
Recording playback
1. Displays teller information and key operations at the same
time.
2. Plays call and screen recording files synchronously.
3. Allows inspectors to pause and stop playing video, adjust
the volume, and drag the slider on the progress bar to
change the playing position.
4. Allows inspectors to enter comments.
21
End-to-end security solution
Data security
Transaction security

Recording of all the transaction process

Recording of all data displayed on the
screen

Transaction jointly processed by
platforms and applications

Encrypts transaction data through
3DES/RSA. (3DES: Triple Data Encryption
Standard; RSA: Rivest-Shamir-Adleman)

Encrypts video data through Advanced
Encryption Standard (AES).

Encrypts user password through MD5.

Supports network quality of service (QoS).
System security

Uses the DR design.

Deploys two main control boards on the
call access gateway.

Deploys all servers in active/standby
mode.
Comprehensive security protection measures
22
Open VTC platform for easy integration and fast
launch of banking services
Standard interface for easy
integration


VTM software platform
Provides the VTA OCX for
service integrators (SIs) to
perform secondary development.
Supports the CEN/XFScompliant VTM terminals.


performed on the VTM terminal.

Lowers the requirements on the

secondary development companies.
VTA
OCX
VTC
CEN/XFS
Simplifies the development
SDK for enabling SIs
WOSA
VTM
23
Provides the software
development kit (SDK) and
DEMO for SIs to perform
secondary development.
Provides remote development
assistance.
Teaming up with partners to promote omni-channel
applications (Huawei's omni-channel VTC platform
occupies the industry's largest market share)


Till April 2014, 28 banks in China had started the VTM
project, among which 24 banks had put the VTM project
into commercial use. Huawei had signed commercial use
contracts with 14 banks and had launched the VTM system
for 11 banks.
Huawei partners with dozens of financial service
independent software vendors (ISVs) and VTM terminal
manufacturers to construct the VTM marker ecosphere.
Largest market share in China
24
Project name
VTM
VTA
platform development
VTM terminal
GreatWall
Bank of China
Information
Huawei
Sunyard
Industry Co., Ltd.
Shenzhen branch
Agricultural Bank of
Software
GreatWall
Huawei development
China Beijing
Information
branch
center
Industry Co., Ltd.
GRGBanking and
China Construction
Huawei Zijin Technology GreatWall
Bank Shenzhen
Information
Branch
Industry Co., Ltd.
KingStar and
GreatWall
Ping An Bank
Huawei Sunyard
Information
Industry Co., Ltd.
GreatWall
Bank of Kunlun
Huawei Sunyard
Information
Industry Co., Ltd.
Jiangsu Changjiang Huawei Sunyard
GRGBanking
Commercial Bank
Hankou Bank
Huawei Sunyard
GRGBanking
Bank of Lanzhou
Huawei Sunyard
GRGBanking
Bank of Jinzhou
Huawei Sunyard
GRGBanking
Nantian
Nantian
Bank of China
Electronics
Electronics
Huawei
Information
Information
Guangdong branch
Industry
Industry
Bank of Beijing
Yucheng
GreatWall
Consumer Finance Huawei Technologies
Information
Company
Limited
Industry Co., Ltd.
Bank of Weifang
Huawei Sunyard
GRGBanking
GreatWall
Ningbo Yinzhou
Huawei Zijin Technology Information
Bank
Industry Co., Ltd.
GRGBanking and
GreatWall
Bank of Shanghai
Huawei GRGBanking
Information
Industry Co., Ltd.
Bank information obtained till April 2014
Bank of China Shenzhen branch: mitigating
counter workload and expanding service coverage
Customer challenges

Counters at bank outlets are burdened with long customer queues and request service
assistance.

Only a few self-service channels are available. Innovative self-service channels are required to
expand service coverage.
Huawei solution

Deploys only one VTC platform that supports smooth capacity expansion. Till December 2013,
a total of 60 VTMs had been deployed. Bank of China Shenzhen branch plans to expand the
VTM scale to hundreds in 2014.

Deploys VTMs first at outlets and then outside of outlets.

Provides the card issuing/activation and contract signing by SMS/phone services in the phase-I
project and provides more services in the future, such as U-Key delivery and electronic
signature.
Customer benefits

70 transactions/per VTM each day

140 transactions/per VTM each day
in the outlets in Shenzhen Bao'an,
Longgang, and Longhua districts.
25

Deploys VTMs in the existing outlets to mitigate counter services.

Builds the 24/7 VTM self-service bank to extend counter services.

Deploys VTMs in the enterprise campus to serve employees.
China Construction Bank Shenzhen branch: deploying
intelligent VTM banks to relieve workload for counters
Customer challenges

Counters at outlets are burdened with excess services.

The mini business hall must be deployed for closely serving target customers.

More face-to-face service channels are required.
Huawei solution

Uses a multimedia collaboration platform to support the WOSA-/XFS-compliant terminals
provided by multiple vendors.

Supports the access from multiple types of terminals, such as PCs, tablets, and mobile phones.

Provides the proactive marketing, real-time interaction, expert assistance, and auditing services
to help customers complete service processes as fast as possible.
Customer benefits
26

Shortens the waiting duration to enhance customer experience.

Expands service channels to improve customer stickiness and lower the operating expense
(OPEX).

Provides face-to-face services through multiple channels.
Independent self-service bank launched by Bank of
Lanzhou: expanding service coverage and providing
remote expert services
Customer challenges




The existing bank outlets cannot meet the service requirements, so the bank wants to deploy
VTMs to expand service coverage.
The bank wants to provide 24/7 services.
More innovative technologies are required for enhancing the service quality.
VIP customers request financial management assistance from financial management experts
remotely at headquarters.
Huawei solution



Deploys the self-service bank independent of the outlet by installing the VTM, ATM, and
transfer machine.
Designs the VTA environment.
Provides the following services: debit card application, deposit and withdrawal, financial
management, card loss claiming, contract signing by mobile banking or SMS, account query,
and self-service payment.
Customer benefits



27
Deploys bank outlets fast at low costs.
Improves the service quality with 24/7 services.
Enables financial management experts seated at headquarters to remotely provide services
for customers standing before VTMs.
Bank of Beijing Consumer Finance Company:
providing small loans for customers
Customer challenges

VTM application mode: singing contracts with customers, providing loan services for customers
onsite, and delivering loans the next day

Strategic objectives: featured products, loyal customers, cash-sufficient system, and professional
services
Huawei solution

Deploys a VTC platform that can be smoothly expanded in the future.

Provides more and more services gradually. (Services launched in the phase-I project: mini
circulation consuming loans, education and training loans, undertaking help loans, emergency
loans, and easy loans.

Deploys the pilot projects in Jinan and Beijing and then expands to other cities gradually.
Customer benefits
28

Delivers loans within 30 to 60 minutes.

Executes 10 transactions on each VTM every day.

Delivers a total of nine millions in a month with 20% annual interest rate.
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The information in this document may contain predictive statements including, without limitation, statements regarding
the future financial and operating results, future product portfolio, new technology, etc. There are a number of factors
that could cause actual results and developments to differ materially from those expressed or implied in the predictive
statements. Therefore, such information is provided for reference purpose only and constitutes neither an offer nor an
acceptance. Huawei may change the information at any time without notice.