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Transformational Significance of Analyticsfor Workforce OptimizationThird Annual Survey of Banking Executives

INTELLIGENT BRANCH TRANSFORMATION®

© 2017 Kiran Analytics, Inc. All rights reserved.

Transformational Significance of Analytics for Workforce Optimization 2

3Executive SummaryKiran Analytics conducted its third annual survey of retail banks to gain insights on branch transformation priorities, workforce strategies, and analytics solutions for workforce optimization.

4 Key Findings

5Importance of Branches *The importance of the branch channel continues to justify distribution, technology, and human resource investments in branch transformation.

6Distribution and Technology Deployment *What are the top distribution optimization priorities? Which branch technology investments are most popular?

7Strategies for Optimizing the Workforce *Aligning selling capacity to market opportunity, universal banker deployment, reducing over-staffing, and talent acquisition/retention are top priorities.

9Advanced Analytics for Workforce Optimization *The majority of the bankers rank their bank’s commitment to data and advanced analytics as high. Yet, only a third of the bankers say they are using advanced analytics for workforce optimization.

10 Key Takeaways *

Table of Contents

* Available in the full version of the white paper: http://kiran.com/annual-survey-results/



47%

8%

25%

20%

≥ 1000

500-999

100-499

< 100

Kiran Analytics conducted its third annual survey of retail bankers on branch transformation priorities, workforce strategies, and analytics solutions for workforce optimization.

Forty-one retail banks in North America participated in the study to provide insights on:

• Top branch transformation initiatives and drivers

• Strategies for optimizing the branch network and workforce

• Challenges with aligning staffing skills and capacity with market needs

• Universal banker deployment

• Analytics for workforce optimization

The survey represented diverse branch network sizes, roles, and job functions (Figures 1 & 2). A majority (80%) were from banks with 100 or more branches. About two thirds had executive management (C-level, EVP), senior management (SVP), or vice president roles. Job functions included strategy, distribution, product development/management, sales and service, and workforce management.

Three years in a row, our research showed two consistent themes.

1. Branches are an important channel because most consumers prefer face-to-face interactions with a human for account opening, financial advice, and problem resolution.

2. Delivering exceptional customer experience is the top driver of branch transformation investments.

Branch transformation priorities are shifting as retail banks continue along their transformation journeys. According to our research, migrating customers to digital channels is now the top priority. Workforce optimization remains among the top three priorities.

In 2015, Kiran Analytics published its first report highlighting the transformational significance of data and advanced analytics for workforce optimization. Two years later, we remain convinced because we see that our clients (leaders in branch transformation) are capitalizing on opportunities. Using their data and advanced analytics, leaders are aligning their staffing skills and levels to market opportunity. They are deploying universal bankers based on the specific needs of each branch. They are acquiring and retaining top talent using predictive analytics.

Executive Summary

Figure 1. Respondents by Branch Network Size

Executive (EVP)8%

Senior (SVP)38%

Vice President31%

Director3%

Manager20%

Figure 2. Respondents by Role

Leading retail banks realize the transformational significance of data and

advanced analytics for workforce optimization.



Branch transformation priorities are consistent year over year with a slight shift in priority. Migrating customers to digital channels is now the top transformational priority. Other priorities are:

• Optimizing the network

• Optimizing the workforce

• Accelerating technology deployments

A large number of the respondents (72%) identified aligning branch formats with market opportunity as the top network optimization priority. Other priorities included branch consolidation and experimentation with new formats. While the key motive behind network optimization is the reduction of expenses, banks are also looking for revenue growth and brand development with smaller, more efficient facilities and Automated Teller Machines (ATMs).

Automating teller transactions with Teller Cash Recyclers (TCRs), and migrating customers to self-service, assisted self-service, and video ATMs are the popular in-branch technology deployments for improving operational efficiency.

The number one Workforce Optimization (WFO) goal for retail banks in 2017 is aligning selling capacity to market opportunity across the branch network.

Deploying Universal Bankers (UB) was a close second. Just over a third (37%) said they have not implemented UB yet. More (39%) said they implemented UB in some or all branches and it is working well. Other workforce optimization goals include reducing over-staffing, acquiring and retaining top talent, and resource pooling.

Nearly three-quarters of the surveyed bankers identified “aligning staff capacity and capability with work content” as their biggest WFO challenge. A majority of those surveyed (59%) rated their bank’s commitment to analytics for workforce management as high or very high.

Yet, when asked about the use of advanced analytics tools, only about a third of the respondents said their bank utilizes advanced tools for WFO.

Key Findings

39%consider their UB

deployments successful

59%committed to workforce decisions driven by data

and analytics

47%chose digital migration as top branch transformation

priority

75%said they deployed Teller

Cash Recyclers

The top NETWORK optimization priority is aligning BRANCH

FORMATS to market opportunity.

The top WORKFORCE optimization goal is aligning SELLING CAPACITY

to market opportunity.To download the full version of this white paper, please visit:

http://kiran.com/annual-survey-results/



INTELLIGENT BRANCH TRANSFORMATION®

Kiran Analytics drives intelligent branch transformation for retail banks through the application of predictive analytics.

Kiran’s solutions have been deployed in over 20,000 branches helping to forecast optimal branch staff levels accurately, hire better people faster, and to plan and schedule resources efficiently. As a result, retail banks increase sales and customer service while reducing operational costs. Our customers have saved tens of millions of dollars annually by transforming their recruiting, resource capacity planning, and branch staff optimization processes.

LaborScheduling

ResourceAlignment

TalentAcquisition

WorkforcePlanning

BranchTransformation

withPredictiveAnalytics

[email protected]

+1 858.270.9950

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