end-to-end digitalisation of a sales process for retail banks

1Process Excellence & Digital TransformationSeptember 2014

Grain Loans

3000 years ago, the first Savings & Loans contracts where printed

on tablets. Clay tablets.

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Bank of the Future

The drive to connect our world using cutting-edge technologies is

immense. Thus, the many projects of «Banking Point of Sales of the

Future».

Process Excellence & Digital TransformationSeptember 2014

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2012 – 2014 : Present Tense.

Banks have tens of thousands of points of sales. Renewing thesebrick-and-mortar branches will take time and effort !

Being driven by our Bottoms Lines does not facilitate such atransformation.

Une

Banque


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Digital & Operational ExcellenceA Digitalized Sales Process: Opening of Account

I. What are we solving ?

II. A theoretical answer.

III. A few tricks…

IV. For a nice result !


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What are we solving ?First Contact between Customer and Bank.

I. It usually starts with a general discussion on products and fees.

I. Then followed by Customer’s decision to buy

• K-Y-C

• Documentations

• Signature

• First Payment


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What are we solving ?Did my Customer like his first encounter with our Bank ?

Satisfaction Survey

Are you satisfied ?

Were you welcome ?

Is the product good ?

Emotional state

Was the meeting fun ?

Was I ripped off ?

Am I more happy now ?

Tedious, Intrusive, Accountability

Professional, but do I trust them ?

Complexe products, unclear pricing

BANK CUSTOMER

We can get better still

This Sales guy can get his bonus

Can we create better tailored products

PROCESS EFFICIENCY CUSTOMER EXPERIENCE


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Bottom line,

Is there a way to be both more Fun and more Efficient in such a

sales process of a Bank account ?


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A theoretical answerDIGITAL

I. A Digital solution has the potential of immediatness

• It allows stakeholders to play with cutting edge technologies,

giving a sense of being « fun »

• Gives the opportunity of multi-channelling

• Cost Per Act seems lighter than Paper Processes, hence

generating savings

• « Geeks » are a high net worth segment


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A theoretical answerProcess Overview

I. Bank: KPIs do not fully measure Quality of ServiceTransformation Ratio

Incompleteness Ratio

Refusal Rate

Income Per Customer

• Customer: Focus on two « not fun » itemsOverall “1st meeting” 2“Card in Hand” time lapse is far too long

Not enough information given during this delay

Operational – Process Efficiency

Process – Targeting Efficiency

Product

ChoiceKYC

Docs. (ID,

payslips, etc.)

Signature

Iteration

Payment

(check)

Scanning

Indexing

Study by

Back-Office

Missing Documents

Re

fusal

Opening of

AccountAcquire

First

Payment

(check)

Manufact.

Card


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>3

A theoretical answerCritical analysis: Existing Account Opening process (Paper)

I. Bank: KPIs do not fully measure Quality of Service

Transformation Ratio

Incompleteness Ratio

Refusal Ratio

Income Per Customer

• Customer: Focus on two « not fun » items

Overall time-lapse is too long

Not enough information given “follow-up” incoming calls ratio

<9%

>22%

>3,5%

CSP-

>3 w.

>2%

K.Y.C

Docs

Sign.

Iterate

B-O

Open

Scan.

Card

Pay

Process Breakpoints

Number of Actors

Number of Tools

Number of Modus Operandi

>10

>8

>15


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A theoretical answerTransforming the Bank’s Sales Process : Digital

•Simulate & Compare:Gives a clear vision of pros and cons of each product

Funnels motivated customers, less inclined to quit mid-way

•Some Controls Points of Back-Office can be automatedAutomated verifications on standard national ID documents or even Payslips.

•Full digitalization of each and every step of the Sales processReducing “Missing Documents” drastically

Product

SimulationKYC

Docs. (ID,

payslips, etc.)

Signature

(digital)

Scanning

Indexing

Study by

Back-Office

Non-Compliant Docs

Documents

Re

fusal

Opening of

AccountAcquire

First

Payment

(check)

Manufact.

Card

KYC &

Docs. (ID,

payslips, etc.)

Iteration

Payment

(card,

transfer,

PayPal)


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A theoretical answerWhat can we hope to achieve in terms of KPIs ?

I. Bank / Process Efficiency :

Number of Process Breackpoints

Transformation ratio

Incompleteness ratio

Refusal Rate

Net Income Per Customer

Number of Actors

Number of Tools

Number of Modus Operandi

• Customer / Customer Experience :

Overall time-lapse

Follow-up incoming calls ratio

>3

>3 w

>1,8%

<2

~3 d

<1,5%

<9% >11%

>23%

>3,5%

CSP-

>10

>8

>15

<12%

<3%

CSP+

- 4

- 3

=


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A Few Tricks…Electronic Signature: A difficult decision

I. What is the opinion of our Legal Department:Electronic Signature does not guarantee Physical Identity

Courts have not yet evolved towards this new method

II. What is the opinion of our Risk Department:It is uncharted territory ; hence risk models are precarious

There is a Systemic Fraud Risk

III. What does our IT Department talks about?Simple Date-Stamps

Cryptographic Certificates

Vocal-Signature

Fingerprint, Retinal scan, Facial recognition, …


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A Few Tricks…Uploading Documents: Easy? No.

I. Bank’s rules about which document to ask to which customer-

configuration, is not as clear as one might think

II. Back-Office will have to judge Conformity of documents based on

photographs and pictures

I. Bank’s management of Missing Documents is not automated, and can be

managed ad hoc, case-by-case

II. Hardware infrastructure of the Bank’s IT systems were not designed for

so many Gb being transferred at once


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A Few Tricks…On-Line Payment: Traitor.

I. Regulation on First Incoming Payment is very strict.

• Texts still mention “checks” in many countries.

• There is a potential Money-Laundering issue.

• Adding a step with a «Reconciliation Account» in the middle creates new

problems



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A Nice ResultApplicative Architecture

Public APP Private APP API

MIDDLE WARE

SOA: WEB-SERVICES (Java JEE, Scala, .NET, etc.)

INJECTIONDOCS &

SIGNATUREUPLOAD PAYMENT

CRM DB & DWH EDM CORE BANKING


FRONT-END

WEB SITES

DOCUMENTS (PDF)

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A Nice ResultExample of a Full Smart-Phone Sales Process : “Soon” app

Mes InfosPerso

My Identity

ok

Mes InfosPerso

My Home

ok

Locataire

Depuis le

Mes InfosPerso

My Income

ok

CSP

Mes InfosPerso

Subscribe

Buy

Je souscrisCompte

Sign

Sign

Je souscrisCompte

Pay


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A Nice ResultBack-Office Efficiency

I. Back-Office receives only Complete Account Opening Requests, moreover

partially checked alreadyID documents, pay slips, can be partially checked by some automated tool

Question remains on Compliance of many uploaded documents

• During working hours, Back-Office receives immediately the Customer’s

RequestBack-Office becomes capable of opening the account 20 minutes after Customer’s click !

Often, the Customer has not yet left the Point of Sale, hence creating a “Wow-Effect

• Interaction with Back-Office can occur real-time, using chatExperience shows specific training and staff is required

• Scanning & Indexing is over-withThese tasks are taken care of at the source


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Digital & Operational ExcellenceThank you

Cédric Coiquaud

Digital Transformations – Sales Processes


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