Bob TramontanoVP Marketing

Transforming the Customer Experience in Retail Branch Banking

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The retail banking ideal Empowered staff. Engaged customers. Differentiate with relationship banking.

• Class leading operational rigour• Consistent Experience delivery• Facilitate customer event cycle• Technology supported

Empowered Staff

• Using multiple channels • Loyal to their ‘bank of choice’• Valuing the branch experience• Technology enabled

Engaged Customers

• Increased return per employee• Increased product uptake• Increased customer retention

Profitable Relationship banking

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Global retail banking industry challengesDriving new customer engagement and profitability models

• Confidence in US banks down by 55%

• Confidence in European banks down 50%

• Global consumer confidence in banks down by 44%

Economic Crisis

• 38% of US customers changed bank due to service in 2010-11

• 5% vulnerable & planning to change due to service issues

• 32% of customers rate customer satisfaction as poor - average

Customer Satisfaction

• Basel 3 capital regulation

• Changing consumer banking regulations

• Money laundering, Payment card data security regulations, worldwide fraud increase

Regulation & compliance increasingthe cost of banking operations

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Offering customers, Presence and PreferenceNew customer expectations across the multi channel ecosystem

We are seeing new banking preferences - established & adopted by all demographics as technology

proliferates

Do customers appreciate why the branch experience is so valuable in helping them manage their long term financial plans?

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The retail branch ‘experience’Still the cornerstone of successful multi-channel customer engagement strategies

Job

Finance

Home

Events – a constantrevenue source for retail

banking

Every day, each customer, regardless of wealth ages, progresses, meeting newer, more complex challenges across job, home, family &

finance.

Family

1 Source Accenture July 20102 Source Finextra May 20103 Source NCR Research 20114 Source CapGemini 20115 Source Ernst & Young 2011

•NAMER average of 28 customer visits per annum by 2015

•Branch generates 80% of retail banking revenue, despite high adoption of new complimentary channels eg Online, mobile

•Customers use branches to conclude the purchase of 4 out of 5 banking lifestyle products, despite originating the application using alternative channels

The Statistical relevance of branch

•Re-energise your biggest, controllable, brand asset

•Re-frame branch engagement for service at lower cost

•Embed relationship banking & high value product sales

•Unlock profit from unused customer opportunities

Adopting new transaction channels, creates opportunity

The value of the branch experience is unique

Alternative retail banking channels such as Online, Mobile and ATM networks compliment & support the branch experience.

They offer increased presence and preference to the customer to routinely bank how they want, whenever they want ensuring their

branch visits have purpose

Moving your customers from impulse to action.

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Branch experience tomorrow – Contemporary design & visually advanced solutions?

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In branch experience

Re frame the branch experience

Connect to the branch

Or Solutions which deliver great banking experiences wherever, whenever

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Personalised offers

Best in class products

Basic customer need – branch location & facilities

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In Branch

•Enable efficient access to basic services•Enhanced Sales Process

Connecting to the branch

•Replicate in-branch customer intimacy

Enterprise control

•Manage consistent banking experience•Close the intimacy gap

Provides basic borrowing & deposits

Branch TransformationIncremental improvement & consistent delivery of the customer experience

Bank of Choice

Bank of choice accumulatesCorporate experience

•Adoptive customer base•Great process consistency•Conducive environments

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World Class Customer Satisfaction Levels……Banks with Customer Satisfaction Index >75% - generate $250m more revenue than poorer peersOnly 9% of US customers hold 4+ of their bank’s products

Customer Influence –Power to drive FI delivery strategies

Reference SourcesErnst & Young 2011, Gartner 2010, McKinsey 2010 9

UPS – World No 1

•2011 Customer Satisfaction Score - 85%

•2010 Net Income - $3.5 billion & rising

Starbucks – World No 1

•2011 Customer Satisfaction Score - 80%

•2010 Net Income - $1 billion & rising

Apple – World top 5

•2011 Customer Satisfaction Score - 87%

•2010 Net Income - $14 billion & rising

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Solve it – Create simple, relevant corporate-wide metrics, underpinned by technology

Future Metrics – Customer FocusedImprove Process, Improve Service & Grow Revenue

Comprehensive customer satisfaction measurement %

% Personnel time devoted to sales & service

Product uptake per Household

The problem – Eradicating complex legacy metrics, which control staff behaviour

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Legacy Metrics developed to control staff actions, achieve targets

Do they promote the right behaviours?

Competing channels

Over simplistic customer satisfaction scoring

Sales driven bonus, without customer satisfaction qualification

Hit “sales per day” target

Staffing levels driven by sales

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•Staff Consistency •Adherance to process

Branch Location

Trained Staff

Teller Cash Recycler

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Deploying “In branch” solutions supports differentiationThe practical impact on key drivers

Impact

Financial Kiosk

• Customers’ choice – Human or Kiosk• Free Personal Bankers - build relationships

Intelligent Deposit

• 24/7 teller, consistent speedy service• Free your tellers to engage with customers

Teller Cash Recycler

• Serve customers, encourage dialogue• Less distraction, develop relationships

Intelligent Deposit

Financial Kiosk

• 100% Customer Satisfaction Target • Increase product uptake • Free more personnel to engage

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•Intimacy Gap•Humanisation

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ATM

Online Banking

Mobile Banking

APTRA Interactive Teller

APTRA Self Scheduler

• 100% Customer Satisfaction Target • Increase product uptake• Free more personnel to engage

Deploying “connecting solutions” closes the intimacy gapThe practical impact on key drivers

Impact

APTRA Self Scheduler

• Reduce no shows to less than 15%• Increase sales conversion by 20%

APTRA Interactive Teller

• 24/7 ‘Live’ service and sales to customers• Immediate & effective staff deployment• Reduce your teller headcount by 40-50%• Provide up to 95% of teller services• Faster teller experience for customers

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•Staff Consistency •Adherance to process

Asset Manager

Core Systems

CRM

APTRA eMarketing & Relate

APTRA Vision

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• 100% Customer Satisfaction Target • Increase product uptake• Free more personnel to engage

Enterprise solutions manage consistency of customer experienceThe practical impact on key drivers

Impact

APTRA Vision

• Equip mobile managers to see down time• Maintain Customer Satisfaction index score

APTRA eMarketing & Relate

• Turn your ATM network into a sales force• Learn and act on your customers’ multi

channel sales approach preferences

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Consumer Experience Banking design – Achieve successful deployment & adoption

RELEVANCE

•Success metrics•Staff & customer communication

USEABILITY

•Segment solutions, •Refresh commoditised solutions

•Customer engagement locked down?

•Embarking on Physical re-design?

•Want to influence an entire network?

Simple rules when deploying solutions

•Useability – does it make a difference?

•Relevance - Does it have a purpose?

Simple considerations for best customer adoption

•Customer collaboration & Scalability

•Simple UI changes eg ATM, Kiosk,

•Scalable redesign – eg meet & greet areas

NCR Confidential

Human to Human Assisted Self Service Mediated Self Service

Choice, within well choreographed process Embedded 24/7 Choice, across channelsIdeal, but not scalable, reliable

Lowering costs Maximising resource, still personal Full customer adoption

The evolution of the customer’s banking experience, to self service adoption

NCR Confidential

• Harness knowledge and vision of multiple channel stakeholders

• Prioritize pain points to affect definable metrics.

• Discovery workshops to convert visions

Create priority roadmap. Incrementally improve

• % FTE Time spent on service & sales• Customer Satisfaction• Product uptake per household

• Recommendations demonstrating real revenue, efficiency & customer experience benefits

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The right partnership methodology – Collaborative roadmap design