invigorating physical channels in a digital world · invigorating physical channels in a digital...

Diebold, Inc. – Public

May 07, 2015

Jerome Amara Vice President, Sales and Marketing [email protected]

Invigorating Physical Channels in a Digital World


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“Digital banking might be the way of the future, but banks can't neglect their branches, which remain just as popular among younger people as older generations”

JD Power

“The goal of the branch transformation and deploying additional services, such as virtual ATMs, an online "click to call" function and an online budgeting tool, is not only to make things more convenient, but to get existing customers to build deeper relationships with the bank”

Bank of America, Digital Banking executive

“Consumers are interested in having different types of technology in the branch with someone there to assist if need be. That might be a way to increase loyalty and get more people to stay,”

Accenture, MD of Banking practices

Blending Physical channel and Digital experience,…


The industry’s dilemma


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Top Six Global Trends Changing The Banking ExperienceInterrelated trends are disrupting the financial industry as we know it.

Source: Diebold Research

Industry Trends

Emergence of Customer 3.0

“Retailification” of Banking”

Security As a Differentiator

New Economics of Banking

Non-Banks Gaining Ground

Drive to Digital

3.0


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The Current SituationConsumer are seeking at a truly differentiated experience,…

Source: Why We Know Our Toilet Paper Better Than Our Banks | TIME.com

80% of consumers differentiate

between brands of toilet paper

<5% of consumers differentiate

between brands of retail banks


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Compared to other retailers the banking industry has not yet met consumer expectations.

The Banker’s Dilemma

Memorable Experience

Support and Education

Cross-Channel Integration

Exploration and Engagement


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The Evolving Role Of The BranchThe branch will remain a key component to an omni-channel strategy and offers the richest experience to consumers.

FREQUENCY OF INTERACTION

• Financial planning and advising

• One-to-one marketing and sales

• Customer service and issue resolution

• Complex transaction handling

• Local community branch presence

RICHNESS OF EXPERIENCE


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Consumers Want Multiple Channel Touch PointsThe right combination of multi-channel touch points are vital to consumer satisfaction.

Source: J.D. Power and Associates, McGraw Hill Financial. 2013

34%28%23%9%3%3%

The branch still has the greatest influence of satisfaction.


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Branches Remain ImportantDespite economy and technology changes, consumers still prefer branches to open new accounts.

Source: Diebold Forrester Omnibus March 2013 & Market Rates Insight, June 2013

61%39%Prefer Branches

Other

62%63%

61%

56%

Gen Y /

Millennials

(18-34)

Gen X

(34-47)

Boomers

(48-68)

Golden

Generation

(69+)

Younger generations have a greater preference to start or expand their relationship with a Younger generations have a greater preference to start or expand their relationship with a Younger generations have a greater preference to start or expand their relationship with a Younger generations have a greater preference to start or expand their relationship with a financial institution in the branch because they are not sure what they need. They go into financial institution in the branch because they are not sure what they need. They go into financial institution in the branch because they are not sure what they need. They go into financial institution in the branch because they are not sure what they need. They go into bank branches because people inside answer their questions.bank branches because people inside answer their questions.bank branches because people inside answer their questions.bank branches because people inside answer their questions.


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Traditional Branch

7-9 branch headcount

15-20% self-service transactions

4,000-5,000 square feet

Units Sold

5-6 branch headcount

50-60% self-service transactions

2,000-3,000 square feet

Relationship Value

New Model Branch

The Industry DilemmaHowever, branches will have to change to remain relevant to consumers and viable for financial institutions.

ILLUSTRATIVE


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Four Primary Branch TypesSelect the branch format that most suits your business objectives and location needs.

StandardConvenienceInstant Showcase

5,000+ sq ft

Relationship Focused

Encourages Exploration

Guided Assistance

Full Service Banking

Branding Opportunity

2,000-5,000 sq ft

Most common model

Relationship focused

Encourages exploration

Self & Assisted service

Full-service banking

750-2,000 sq ft

Essential Transactions

Self & Assisted Service

Staff support as

needed

Often in metro areas

Lower cost to operate

200-750 sq ft

Transaction Focused

Limited Service

Banking

Encourages Self-service

Assistance If Needed

Show local presence

High EngagementHigh Efficiency


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Transformation Around the GlobeFinancial institutions around the world are experimenting with new models that address the specific needs of their market and consumers.

TD BankNorth America

Bank of AmericaNorth America

BNLEurope

Belfius BankEurope

Helm BankLatin America

DBS BankAsia Pacific

CapitecSouth Africa

sbiINTOUCHAsia Pacific


Technology for tomorrow, and today.


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Technology Enables Branch Transformation

DepositAutomation

Mobile Cash Access

Easily migrate deposit and bill payment transactions

• Address over 50% of all teller transactions

• Reduce teller headcount

• Cash recycling yield incremental operational improvements

Pre-stage ATM transactions with mobile app

• More secure (card-less)

• Better customer experience

There are several technologies that can enable your branch transformation strategies.


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Assisted Self-Service

TabletIntegration

Inside the branch self and assisted service

• Augment transaction migration efforts

• Develop improved customer experience

• Cash recycling capabilities

Integrate tablet experience

• Enable branch employees to intervene during a transaction

• Monitor self-service device health and activity



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Teller Pods

Offer services which typically occur in a longer teller line

Allowing for more personal communications and service

Allow deeper conversations in the lobby versus branch offices

New generation of Teller assist unit enhance efficiency and security



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Two-WayVideo

Two-way video conferencing at the ATM or in a office setting

• Enhances consumer experience

• Expands access to financial service experts – touch points and times

• Advances targeted marketing

• Video by choice, not by default

Technology Enables Branch TransformationThere are several technologies that can enable your branch transformation strategies.


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Marketing Enablement

Tools to assist in the marketing of your institutions products and services

• Digital wall, touch screen or ATM marketing campaign

• Enhance dialogue with existing consumers and personalize user experience

• Create actionable call-to-actions



The day after tomorrow – Digital Branch

CONVERGING TRENDS

Branch Transformation Omni-Channel ExperienceEFFICIENCY

AUTOMATION

CONVENIENCE

ORCHESTRATION

Responsive Banking Concept on YouTube:

https://www.youtube.com/watch?v=e6OakVi2sLU

BRANDINGBRANDING

INTERACTIVE

SIGNAGE

INTERACTIVE

SIGNAGE

FAST CASH

DIGITAL WALL

FAST CASH

DIGITAL WALL

QUEUEINGQUEUEING

TRANSACT

VESTIBULE

TRANSACT

VESTIBULE

CONSULT

VESTIBULE

CONSULT

VESTIBULE

SIGNAGESIGNAGE

RECONFIGURABILITY

MARKET FEEDBACK

“Diebold

Reimagines

Financial Services

Experience with

Responsive

Banking Concept”

“This will set a

new standard in

self-service and

will help

redefine the

bank branch in

the future.”

“Could this be

the bank of the

future?”

“It’s refreshing

and encouraging

to see that a

company with

such a long and

accomplished

history is still

capable of

innovation in its

industry, and I

think Diebold

has a bright

future ahead.”

- Matt Frankel, Analyst

“Launching an

Unmanned Pod

into the Branch

Space”

…Diebold’s Responsive Banking Concept

“was made to spur the imagination…

and spur the imagination it does.”

Bob Meara

More than a solutions provider, …Your innovation partner.

invigorating physical channels in a digital world · invigorating physical channels in a digital...

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