multi-channel banking the open plan approach gerry allen e-commerce strategy
TRANSCRIPT
Multi-Channel Banking
The Open Plan Approach
Gerry Allen
E-Commerce Strategy
Agenda
Strategic Backdrop Open Plan - a brief overview Implementation of the e-channels
Internet
WAP
iDTV
The results so far Future plans Summary and Questions
Strategic Backdrop
Converted to a bank in 1997
4 million savers
500,000 borrowers
Needed to address:
Pressure on margins
Competition based on price
New entrants
Strategic Backdrop
Rev
enu
e P
er C
ust
om
erR
even
ue
Per
Cu
sto
mer
NewNewBusinessBusiness
OldOldBusinessBusiness
PROFITPROFIT
BREAKEVENBREAKEVEN
Strategic Backdrop
The back book
Open Plan - a brief overview
Open PlanOpen Plan
100%100%165%165%
Open Plan Overview
Replace wide margin single product relationships with narrower margin multi-product relationships
Provide Customised Banking: Personal Planning and advice
An integrated set of products
Greater accessibility for customers
Help customers to see the whole financial picture
Customer relationship management
High quality service delivery
Open Plan Overview
CreditCard
PersonalLoans
Mortgage
Overdraft
Vehicle Leasing
UnitTrusts
Pension
CurrentAccount
SavingsAccounts
Life Assurance
SavingsAccountsSavings
Accounts
Open Plan Overview
Traditional product view
Insurance
Flexible MortgageFlexible Mortgage
Offset MortgageOffset Mortgage SavingsAccounts +Current
AccountMortgage
MortgageReserve + +
CurrentAccount
MortgageMortgageReserve + +
SavingsAccounts
CurrentAccount
SavingsAccounts
OtherSavingsMoney ManagementMoney Management +
SweepingSweeping
AggregationAggregation
CurrentAccount
SavingsAccounts
SavingsAccounts
SavingsAccounts
SavingsAccounts
SavingsAccounts
Features:
Open Plan Overview
Open Plan product view
Helping Customers To See The Whole Picture
Summary StatementSummary Statement Current AccountCurrent Account
Savings ‘pots’Savings ‘pots’
MortgageMortgage
Personal LoansPersonal Loans
‘ ‘reserve’ accountsreserve’ accounts
Credit CardsCredit Cards
General InsuranceGeneral Insurance
Life InsuranceLife Insurance
Unit TrustsUnit Trusts
Other Woolwich accountsOther Woolwich accounts
Open Plan Overview
Open Plan Overview
Bricks or Clicks
BranchTelephone
CreditCard
Mort-gage
UnitTrusts
DepositsLife
Assur.CurrentAccount
PersonalLoans
E-Bank
NewSystems
BricksBricks ClicksClicks
Bricks and Clicks
Open Plan Overview
BranchTelephone
CreditCard
Mort-gage
UnitTrusts
DepositsLife
Assur.CurrentAccount
PersonalLoans
E-Channels
BricksBricks ClicksClicks
Strength of Woolwich brand - did not wish to create a competing brand
Wanted to retain single customer set and single customer view
Strength of retail branch network Use of existing IT infrastructure Use of existing staff expertise Belief that customers require multi-
channel access to banking services Desire to create integrated customer
benefits
Open Plan Overview
Bricks and/or Clicks
Middleware
Bra
nch
AT
Ms
Cal
lC
entr
e
Inte
rnet
iDT
V
WA
P
Legacy Systems
Open Plan Overview
Channel Integration
Implementation of the
e-channels
Implementation
Internet
WAP
iDTV
Implementation
1998 1999 2000 2001
LaunchIncept Pilot
Two solutions:
WIRELESSNETWORK
INTERNET
BANK
WTLS SSL
Break Point
WAPGateway
Network operator solution
Implementation
WIRELESSNETWORK
INTERNET
BANKWTLS
SSL
WAPGateway
WEB server
WTLS
Secure Domain
Corporate solution
Implementation
IT Marketing
Staff Training
Phone Supply
Customer Support
Content
Relationships
Operational Fulfilment
Communications
Implementation
VS
Viewed from 10ft (lean back)
Less is more on the TV(larger fonts, less data)
Keep it simple - (low user tolerance)
Not used to interaction
Implementation
Viewed from 10 inches(lean forward)
As much detail as you need
Willing to learn (so far)
Expect interaction
The Results so Far...
All targets met in 2000& 2001
Over 1m Open Plan customers 3+ products per customer 25% new to Woolwich Remaining 75% are more profitable than
‘classic’ Woolwich customers High (and increasing) usage of e-
commerce channels
The results so far…
The results so far…
Average daily logins and Calls Handled
Calls handled
E-channel logins
The results so far…
E-Channel Activity
Web
iDTV
WAP
The results so far…
Average daily logins
Internet
WA
P
iDT
V
The results so far…
Frequency of use
WAP
Web
iDTV
Lessons learned on WAP Those using the channel do so frequently Not just internet customers Seen as convenient and personal When the service is right it is used often
Getting people started is a big issue Lots of misconceptions (esp. cost and speed) Usability Standards
The results so far…
Lessons learned on all e-channels All the channels are different media with different
characteristics and design points Individual customers have different preferences Most customers use multiple channels Effective Channel Management is essential Business processes must be adapted (end to end
processes are key) Manage the customer experience on each
individual channel and as a whole Release strategy is fundamental (Channel
interdependency)
The results so far…
Future Plans
Continue learning about each e-channel and how best to exploit it
Continue making e-channels the ‘channels of choice’
Increasing effectiveness of cross-channel management
Increasing breadth and depth of channels Continue to exploit integrated channel strategy in
line with new technology and customer demands Call centre to contact centre
Future Plans
Open Plan’s successful strategy has been built upon the concept of an integrated set of financial products and an integrated distribution network. It maximises the benefits of the existing bank infrastructure whilst fully exploiting new technology.
Gerry Allen
Summary
Questions and Answers