serving today’s member · aptra mobile cash withdrawal allows consumers to initiate and pre-stage...

NCR Confidential

Serving Today’s MemberBob Tramontano

Serving Today’s MemberBob Tramontano

NCR Confidential

39,45239,452

52,60352,603

245245

2727

21,31121,311

RETAIL POS TRANSACTIONS

9,7489,748

125,600125,600

Hospitality ePOS

TRANSACTIONS

RETAIL SCO

TRANSACTIONS

CASH ONLY ATM

TRANSACTIONS

“ALL” ATM

TRANSACTIONS

PASSENGER

KIOSK CHECK-IN

MOBILE CHECK-IN

We engage with members like yours…300M times per day…

that translates to

NCR Confidential

In 2012, children born in

1994 will turn 18,

becoming the first adults

to have lived their entire

lives in the presence of

online retailing…

Instant gratification

Frequent rewards

Digitally empowered

Primary channels = self-service

Socially networked

NCR Confidential

Cards grow, cash stays important

Checks

Cash

Credit Cards

Debit Cards

Prepaid Cards

Preauth. Payments

Remote Payments

Checks

Cash

Credit Cards

Debit Cards

Prepaid Cards

Preauth. Payments

Remote Payments

NCR Confidential

Immediacy of online…with the control of cash

• 40% of store sales are cash!

• Improved assortment

• Impulse to action

NCR Confidential

Industry insights and trends

• Improving economic climate, despite high unemployment

• Election year jitters along with regulatory concerns in US

• Channel optimization in light of expense pressures, branch network costs and consumer demands

• Long-term pricing could lead to lower margin income for next couple of years

• Operational innovation and technology can help defray costs – but will be targeted

• Substantial disruptions possible with emerging payments – mobile, P2P etc. – and could put further pressure on revenue streams

• Fraud is growing – and could be perceptionally more challenging than the cost

• Segmentation back in vogue – with particular emphasis on mass affluent and above segments

• Pricing movement toward relationship models (or benefits for assets under management (AUM))

• Frontline implications – move from transactional to relational

Source: BAI

NCR Confidential

Financial Institution business priorities and challenges

Asset growth and quality (credit portfolio) is the top business priority as well as the top business challenge for financial institutions

• New customers of higher quality, increasing share of wallet of existing high potential customers, and focused efforts on specific customer segments

Profitability improvement is the second highest business priority

• Two-thirds of banks have lower capital expenditures and operating budgets in 2012

• Migrating to online and mobile channels, back office operations cuts and branch network reduction /redesign are the top expense cutting areas

Business Priorities

Business Challenges

Source: BAI

NCR Confidential

Member’s view of attribute importance

Brand Image

Is a company I can trust 85%

Is a well respected brand 66%

Is an innovator 39%

Price and Fees

Offers competitive checking fees 75%

Interest rates charged on loans are fair 64%

Interest/dividends paid on deposits are fair 62%

Offers competitive loan fees 58%

Service and Product Quality

Accurate in handling transactions 87%

Prompt problem resolution 82%

Efficient and fast handling of lobby transactions 81%

Has knowledgeable staff 80%

Has friendly and courteous staff 77%

Provides quality on-line banking services 76%

Have convenient office locations 72%

Offer convenient office hours 68%

Has a large number of ATMs 50%

Provides quality mobile banking services 34%

Offer quality investment and brokerage account services 33%

Total

Source: 2011 BAI Consumer Market Pulse (August) – US National Sample of 6,750 respondents; confidential

NCR Confidential

Branch transactions decline while sales increase

NCR Confidential

Top retail distribution investment areas

Mobile and online banking channels continue to be the top areas of focus for retail distribution investment efforts

• This is especially true for smaller institutions who are not yet as advanced in these areas as the larger institutions. Under $2.5B in assets $2.5B or more in assets.

Base: All Retail Distribution respondents Q50. Considering the various aspects of your institution’s RETAIL DISTRIBUTION CHANNELS, please select up to three areas where you think your institution will allocate the most investment dollars in the next year to two years?

1%

13%

16%

17%

18%

18%

21%

25%

33%

49%

57%

Other

Branch reduction

Channel integration (360 degree view)

Integration of channels

Channel service and support

Call center/IVR

Branch automation

ATM

Branch redesign and/or expansion

Online banking channels

Mobile banking channels

Under $2.5B in Assets(n=96)

$2.5B or more in Assets(n=42)

60% 50%

52% 40%

35% 26%

22% 31%

20% 24%

21% 12%

17% 21%

16% 19%

10% 29%

9% 21%

1% 2%

NCR Confidential

Mobile Trends

Growth of Smart Phones & Tablets

• Smart Phone & Tablet adoption continues at a rapid pace

• New form factors driving the future of financial services delivery

• Expanding beyond simple transactional banking

Competing Mobile Wallet options

“Wallet on the phone”

“Wallet in the Cloud”vs.

Mobile Banking + Mobile Payments

+ Targeted Offers= Future of Mobile Banking

NCR Confidential

• Battle between NFC & 2D barcode technology for mobile interactivity

• 2D barcode works on many existing devices

• NFC backed by major players but requires collaborative ecosystem elements to come together

NFC vs. 2D Barcode

Mobile Trends

• Multi-mode mobile banking solutions allows consumers to interact how they want (mobile web, native apps or via text messaging)

• HTML5 is coming and will open up more advanced functions to a broader set of phones

Multi-channel comes of age:

•Dislocated user interface•APTRA Mobile Cash Withdrawal

Leveraging multi-channel convergence, APTRA Mobile Cash Withdrawal allows consumers to initiate and pre-stage a transaction from their mobile device for fulfillment at the ATM or in-branch

Channel Convergence Apps continue to dominate but HTML5 is coming

NCR Confidential

Life Event ManagementDriving a constant need for an engaging, personalized experience

Events – a constantrevenue source for

retail banking

Every day, each member regardless of wealth

ages, progresses, meeting newer, more complex challenges across job,

home, family & finance.

Events – a constantrevenue source for

retail banking

Every day, each member regardless of wealth

ages, progresses, meeting newer, more complex challenges across job,

home, family & finance.

FinanceFinance HomeHome

JobJob

FamilyFamily

Source Finextra May 2010

Service delivery strategy. Driven by the complexity of consumers’ daily lives.

NCR Confidential

The member decision making processStimulate impulse, facilitate discovery, validate decision & drive member action

Today’s members learn through multiple information sources

:22%

48%

24%

One

Two

Three

Four

Four +

2%

4%

0 10 20 30 40 50

ATB Research Report | March 2010Social media stimulus plus online & mobile channels, accelerate impulse to discovery

ATB Research Report

NCR Confidential

Member drivers – choosing a financial solution The relationship between life events and financial solutions

A complex life event in the member’s view, drives them to expect a complex solution

Employment relocation


Solu

tion C

om

plexity

Solu

tion C

om

plexity

Death in the family

Death in the family

Car Insurance renewal


Life Event ComplexityLife Event Complexity

in generation Y product holdings in next 5 years 1

75% increase expected

North American Technologies Financial Services Online Survey Q4 2010, as reproduced by Forrester Research, BAI RDS Chicago, Oct 2011

NCR Confidential

Member drivers – choosing a financial solution The relationship between life events and financial solutions

A complex life event in the member’s view, drives them to expect a complex solution



Solu

tion C

om

plexity

Solu

tion C

om

plexity

Death in the family

Death in the family



Life Event ComplexityLife Event Complexity

Complexity is in the eye of the member – the banker cannot dictate this.


in generation Y product holdings in next 5 years 1

75% increase expected

NCR Confidential

Member drivers – choosing a preferred channel The relationship between validation & the preferred engagement method

Mortgage Mortgage

Solu

tion C

om

plexity

Solu

tion C

om

plexity

Wealth Management

Wealth Management

Car Insurance Policy


Level of Interaction + ValidationLevel of Interaction + Validation

product purchases conclude in branch 1

4 out of 51 Finextra 2011

NCR Confidential

Member drivers – choosing a preferred channel The relationship between validation & the preferred engagement method

When faced with complex financial solutions, members need greater validation to conclude purchases

Mortgage Mortgage

Solu

tion C

om

plexity

Solu

tion C

om

plexity

Wealth Management

Wealth Management



Level of Interaction + ValidationLevel of Interaction + ValidationCall Centre Online BranchCall Centre Online Branch

product purchases conclude in branch 1

4 out of 51 Finextra 2011

NCR Confidential

High Value ActionFulfil Discovery and Validation at the branch

Extend your reach, manage impulse to actionStimulate want, facilitate discovery, provide validation & build relationships

Facilitate Discovery at the most trusted channel

Provide presence, preference – capture

impulse at access points

NCR Confidential




NCR Confidential

Extend your reach Stimulate Impulse, Offer self & assisted discovery

Financial Kiosk

Unique

Solution Impacts

Enabling Staff to Interact

– Use kiosk as a staff: member engagement center

– Review, discover, conclude the sale of financial solutions with members

– Free Personal Bankers from routine transactions, to interact

– Manage queues & appointments

NCR Confidential

Extend your reach Stimulate Impulse, Offer self & assisted discovery

Financial Kiosk

Unique

Solution Impacts






Empowering members to bank

– Self discover member services and financial solutions and make appointments

– Execute routine transactions at kiosk, to avoid teller queuing

– Educate and close the intimacy gap for generation Y

NCR Confidential

APTRA Interactive Teller

*Available now ** Available Q3 2012

Extend your reach Full teller service 24/7, anywhere, anytime – Engage, support impulse & discovery

Unique

Solution ImpactsEnabling Tellers to go to members

• Highly skilled, centrally managed and empowered staff, in the video call centre

• Deployable anywhere, anytime 24/7, in Lobby or at Drive up lanes

• Delivering full teller service at the ATM, capable of:

- Remotely driving rich set of ATM transactions

- Teaching members to migrate to self service

- Discussing services and sales

• A new staff: member engagement model, with maximum productivity

NCR Confidential

APTRA Interactive Teller

*Available now ** Available Q3 2012

Extend your reach Full teller service 24/7, anywhere, anytime – Engage, support impulse & discovery

Unique

Solution ImpactsEnabling Tellers to go to members

• Highly skilled, centrally managed and empowered staff.

• Deployable anywhere, anytime 24/7, in Lobby or at Drive up lanes

• Delivering full teller service at the ATM, capable of:

- Remotely driving rich set of ATM transactions

- Teaching members to migrate to self service

- Discussing services and sales

• A new staff: member engagement model, with maximum productivity

Members benefit from a unique service delivery model

• Member has choice of full self service ATM transactions, or…

• Calling for F2F teller who remote drives the transaction for them

• Ensuring that each visit to the ATM is just like being at the branch

• But benefitting from the personalized experience whilst not having to wait in teller queue

• Closing the intimacy gap in lobby or at the drive up lane

NCR Confidential






NCR Confidential

Enabling best resource management to benefit the member

• Manage staff deployment, activity & performance in real time

• Control instant re-deployment of resource

• Reduce appointment no shows to less than 10%

• Non linear queuing manager can reduce in branch queues by up to 50%

• Increase cross sales values by up to 25%

• Reduce management control time by up to 30%

Facilitate discovery Move from impulse to action

Self Scheduler

Unique

Solution Impacts

NCR Consulting 2012

NCR Confidential

Enabling best resource management to benefit the member

• Manage staff deployment, activity & performance in real time

• Control instant re-deployment of resource

• Reduce appointment no shows to less than 10%

• Non linear queuing manager can reduce in branch queues by up to 50%

• Increase cross sales values by up to 25%

• Reduce management control time by up to 30%

The Member has complete control of their banking experience

• Member books their own appointment online, by smart phone, at kiosk, via branch staff in real time

• Member books F2F appointments, home visits, telephone interviews with preferred advisors

• Member receives immediate confirmation in real time, by text or email – and reminders

• Member can alter appointment at any time, under their control in real time

• Member can alert branch to their presence at kiosk, benefitting from non linear queue management in branch

Facilitate discovery Move from impulse to action

Self Scheduler

Unique

Solution Impacts

NCR Confidential






NCR Confidential

Free your staff to engage Enabling interaction by removing distraction, eradicating barriers

In branch

Solution Impacts

Teller Cash Recycler, APTRA Cash Connect, Financial Kiosk, Netkey Digital Signage control

Enable Tellers, to become fully member focused

TCR & Cash Connect

• Reduce each transaction by 45 secs freedom to speak to the member.

• Remove all barriers, open up your banking hall. TCR is a self contained safe & till for open environments.

• Cash Connect software records transaction record straight to core banking in real time – no distractions.

• Free management to coach their teller team to interact with members. Open Plan environments – closing the intimacy

gap between you and your members

NCR Confidential

Free your staff to engage Enabling interaction by removing distraction, eradicating barriers

In branch

Solution Impacts

Teller Cash Recycler, APTRA Cash Connect, Financial Kiosk, Netkey Digital Signage control

Enable Tellers, to become fully member focused

TCR & Cash Connect

• Reduce each transaction by 45 secs freedom to speak to the member.

• Remove all barriers, open up your banking hall. TCR is a self contained safe & till for open environments.

• Cash Connect software records transaction record straight to core banking in real time – no distractions.

• Free management to coach their teller team to interact with members.


Financial Kiosk





Digital Signage Management

– Creating highly visual, dynamic interaction with members

Open Plan environments – closing the intimacy gap between you and your members

NCR Confidential

Free your members to engageEnabling interaction by removing distraction – for all of your retail members

Digitizing negotiables : speed & convenience = new transactions & higher volumes

Scalable Deposit Module (SDM)Scalable Deposit Module (SDM)

Bulk Cash +Check deposit

24/7 convenience

Immediate Validation,real time credit

Last minute payment convenience

Enable loan & bill payments through self service network

NCR Confidential

Free your members to engageEnabling interaction by removing distraction – for all of your retail members

5 Bank Notes3 Checks Deposit in < 60 seconds

“The cost efficiencies make it practical for any size institution to deploy deposit automation…A picture is worth a thousand

words.” - Carl Ratcliff, President and CEO ABNB FCU

24/7 time freedom for small business

Effective cash flow solution for small business

Reduce check deposit fees & fraud risk

Small business embraces intelligent deposit

NCR Confidential

Making the small things possibleEnabling remittance through the self service network

Technology Credit Union making life easier, returning time to members

NCR Confidential

Reactive Impulse management

Low Value Action

Satisfying wants, fulfilling needs in the ‘now’Driving high quality loyalty capital from customer satisfaction

The quality of pro-active engagement is what drives revenue growth

8 banking productsAverage US member owns

2 of those productsAverage US FI holds

3.5 products per householdThe best NAMER FI average


NCR Confidential

Reactive Impulse management

Low Value Action

Satisfying wants, fulfilling needs in the ‘now’Driving high quality loyalty capital from customer satisfaction

The quality of pro-active engagement is what drives revenue growth

Pro-actively Stimulate High Value Action

The Financial Institution of Choice

•Generates RICH customer satisfaction scores, through pro-active management

•Grows average wallet share. Focuses on product takeup, rather than just new sales

Facilitate Discovery

NCR Confidential

The value of in branch technologyUnderpinning the Customer Satisfaction score

Members still go to the branch to validate their decisions, despite declining CSI scores.

Custo

mer S

atisfactionCusto

mer S

atisfaction

100%

Branch Staff

•Capable – Potential to deliver excellence

•Lacking - Guaranteed consistency

Branch Staff

•Capable – Potential to deliver excellence

•Lacking - Guaranteed consistency

Existing In-branch technologyExisting In-branch technology

60%

NCR Confidential



Custo

mer S

atisfactionCusto

mer S

atisfaction

100%

Existing In-branch technologyExisting In-branch technology

Branch Staff

Underperforming & Distracted

Branch Staff

Underperforming & Distracted

60%

NCR Confidential



Custo

mer S

atisfactionCusto

mer S

atisfaction

100%

NEW TECHNOLOGY

•Kiosks for self discovery, removing anonymity•Queue management + Appointment Booking•Digital signage for direction & interaction

•Enabling staff to deliver customer satisfaction levels in the upper quartile – always.

NEW TECHNOLOGY

•Kiosks for self discovery, removing anonymity•Queue management + Appointment Booking•Digital signage for direction & interaction

•Enabling staff to deliver customer satisfaction levels in the upper quartile – always.

Branch Staff

•Undistracted & empowered to engage

Branch Staff

•Undistracted & empowered to engage

60%

Embed consistency, retain your members, stem the exodus to other financial competitors.

NCR Consulting 2012

NCR Confidential

A formula to combine staff & technology in branch

The very best technology seamlessly executes purpose, leaving the brand experience to stand out.

Financial institutions need a way to combine technology with staff: member interaction, as they transition from transactional models to pure sales and service engagement models

NCR Confidential

Choreographed Assisted ServiceFostering impulse, discovery and action

NCR Confidential

Choreographed Assisted ServiceFostering impulse, discovery and action

Create a center of gravity for in branch interaction

NCR Confidential

NCR Confidential

User centric intuitive user experience

Internet banking• Balance transfers• Payments• Registration for Internet Banking

Internet banking• Balance transfers• Payments• Registration for Internet Banking

Teller Migration• Bill payment • Statement printing• Change of address

Teller Migration• Bill payment • Statement printing• Change of address

Sales & Service Enablement• Appointment booking• Application form printing• Card dispense

Sales & Service Enablement• Appointment booking• Application form printing• Card dispense

Enables member interaction across the enterprise based on presence and preference

NCR Confidential

Successful Physical Transformations

Alignment of

Talent

Physical space

Processes

Technology

NCR Confidential

Thank you

BankingSeamless, personalized experience across all channels

Drive Lower Cost

Member Intimacy

Grow Revenue

Assisted-service Personalized self-service

NCR Confidential

Any questions?Any questions?

serving today’s member · aptra mobile cash withdrawal allows consumers to initiate and pre-stage...

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