the transformation in retail banking
TRANSCRIPT
0 Copyright 2016 FUJITSU
Fujitsu Forum 2016
#FujitsuForum
1 Copyright 2016 FUJITSU
The Transformation in Retail Banking
Miguel A. Feu Gallego
Managing Director
Grupo Santander Global Account
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Digital Waves
Online consumer business Hyperconnected World A huge impact to every industry
1st Wave
The Internet Connected, online
2nd Wave
The Mobile Internet Real-time, anywhere
3rd Wave
The Internet of Things and Big Data - Convergence of physical & digital
4th Wave
AI and Robotics Knowledge & automation
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Organisations need to cross the chasm…
Technology adoption model: adapted from “Crossing the Chasm” by Geoffrey A. Moore, 2014
Entrepreneurs Start-Ups
R&D Shadow IT
Mainstream organisations and ICT departments The disconnect
...and embrace Fast IT
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Digital Challenges:Our Approach to Digital
Leadership & Talent
Security
Complexity
Adoption
Organizations face difficult challenges in shifting to digital
Fujitsu Edge
Portfolio of technologies and services, driving digital transformation
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Retail Bank: Situation, Trends, Decisions
Situation
Address new generation of customers.
Offering a better customer experience through new products and channels.
Fundamental concept of a trusted institution .
Pace of change is increasing rapidly.
Need to deepen customer relationships.
Megatrends
Industry Priorities Developing a customer-centric business
model. Optimizing distribution. Simplifying business and operating
models. Obtaining an information advantage Enabling innovation, and the capabilities
required to foster it. Proactively managing risk, regulations
and capital. Challenges Customer expectations and behaviors
evolve FASTER than Banks evolution path Evolve their customer experience to be
more female-friendly. Cyber security is paramount to rebuilding
the trust.
Winning decisions
Every bank will be a direct bank.
Branch service officers and bank customers use the same platform.
Branch will take over new roles.
Banks will organize themselves around customers instead of products or channel.
Expanded ATMs’ will be in-store or in other well-trafficked sites, and as valuable as marketing, sales, transaction and cash-handling points – perhaps even with dedicated staff.
Leaders will rapidly improve their footprints, reducing branch size and costs, introducing new models and migrating low value transactions to low-touch digital channels.
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Our Vision for Digital
Our vision is to leverage the power of technology
to enable people to build a safer, more prosperous
and sustainable society. We call it a Human Centric
Intelligent Society.
Fujitsu is committed to fulfilling this vision by
working with our customers and partners to
generate greater business and social value.
Human Centric Innovation Driving Digital Transformation
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Developing a customer-centric business model Real customer-centric business model
Who are their target customers? What is their value proposition to
those customers? What competitive advantages will
distinguish them in the market- place? A bank does not need to be all things to all people.
Customers are redefining their expectations
Multichannel access. Product simplicity. Seamless integration of a convenience,
personalization, accessibility and ease of use.
Flavours: “ Feel like their bank is anticipating their needs”, “They want transparency and no surprises in terms of fees”
Better customer experience leads to greater loyalty, advocacy and revenues.
Focus Points
Enhancing customer data collection. Evaluating bank performance,
metrics and best practices from customer viewpoint.
Allowing for increased customer choice in configuring product features, including pricing.
Using social media to monitor customer preferences.
Offering a mix of self-directed and personal interaction channels to customers.
Creating a flexible and agile product portfolio adapted to customer segment.
The winners of 2020 will develop a much deeper, holistic understanding of their customers. They will need to acquire, integrate and analyse multiple sources of internal and external data. They will be able to understand their customers’ needs, and be present with a relevant solution at the time of need. They will simplify their product sets. And they will redesign their core processes from a customer point of view. (Pwc Report Retail Banking 2020)
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Battle Card for the Retail Banking Transformation Challenge
Win the fee war.
Be every place , work with the community .
Surviving banks will be low-cost producers
Fix the bad, fast.
Help your story get told.
Go digital but improve your human touch.¡¡¡¡
Battle Card
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Redefinition of the branch Each bank will find their own model
Do-it-yourself branch
Full service Branch
Specialized Branch
Flagship Branch
• Enables customer to perform medium to complex operations
• Automation follows bank strategy and regulation with broad opening time
• Self-service supervised by an employee
• Sharing interest and relevant information that allow personalized advice to the client
• Spaces dedicated to meet new customer
Knowing customer: • by segment or type, such
as private banking and corporate banking.
• rural segment • corporate
• Where the physical combination and digital responds to the aim of enhancing the brand image and values of the bank
• Branding • Finantial Institution DNA
Agile Branch
• Dedicated to operations that don’t require personal attention
• Agility and immediacy are the key values.
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Customer’s point-of-view
• Cosy and modern environment
• A place to be listened
• Same experience in all channels
• Pos-sales and complains support
Bank’s point-of-view
• Shorter Time-to-market
• Customer centred
• Sales and consultancy driven
• Technology based
• All channels seamlessly integrated
Focus: enhance the relationship with the customer
The Self service channel …as a pillar to the new Retail Banking Model
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The Self service channel …as a pillar to the new Retail Banking Model
Fujitsu is delivering intelligent solutions for smart branches
• Multifunctional and highly available ATMs • Intelligent Capture • Dynamic Marketing • Complete line of terminals: computer, tablet, touch screen • Innovation and consultancy
Different approaches • Branding • Lab for technology
testing • Pilot for network
branches
Same guidelines • Techie • Wireless • Face to face • Customer centred • “Shop” and cosy • Innovation • Sales and consultancy
oriented • Modern and mobile
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Profitability of the self-service channel Reduction of the current TCO and increasing income
Modernization of the self-service channel According to business, technological, functional, safety and regulations requirements
Focus on the business Assuming the achievement of the operational excellence in a Self-service Channel focused on customer
Service excellence in the self-service channel Ensuring a high level of service
The Self service channel Main challenges
1
2
3
4
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ATM Manufacturer & Supply
ATM Refurbishment & Restyling
ATM Environment Certification & Testing
ATM Application Development & Support
ATM Middleware Development & Support
ATM Environment Audits
ATM Installs, Moves, Adds & Changes
Programme Management & Initiative Fulfilment
Cash Replenishment (through Partner)
ATM Customisation ATM Design
Proactive Monitoring & Automated Responses
Triage & 1st Level Remote Support
Incident Tracking & Management
Study Desk & Problem Management
Service Management & Reporting
On Site Engineering & Support
Cash Forecasting & Optimisation
H/W
ATM-as-a-Service Utility Model
H/W &
S/W H/W
H/W H/W
S/W S/W
CHANGE
CHANGE
CHANGE CASH
CASH
SUPPORT SUPPORT SUPPORT SUPPORT SUPPORT SUPPORT
Our solutions tackle two of the basic challenges faced by banks:
• Improving customer service through better access to and availability of key services.
• Enhancing the value of the branch
through freeing staff from transactional activities to focus on higher revenue sales.
Benefits • Increased Switch In • Increased Customer Satisfaction • Improved Cost income ratio • More Upsell and Cross Sell of products • Reduced time to launch new products
Enhanced ATM Support Services
Self Services Banking Solutions
Transformation around Retail Banking
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Transactions absorption of low added value by the self-service channel:
• Free employees to assume a more sales/consultative role;
• Optimizes investment in branch networks;
• Enhances Customer Experience
The channel ROI is based on the achieved Absorption Rate
100% 85%
70% 68%
38% 25%
Branch 30%
Self Service 70%
Customers make the choice: they will only use self-service if it is easier, practical and more useful
Easier to use ATMs with better functions immediately benefits absorption, leading to greater efficiency and sales productivity at the branch
Absorption is the % of transactions done at the ATM vs the branch, during branch opening hours.
It is our main efficiency KPI.
2003
47%
2009
65%
2013
72%
The Self service channel Is a pillar to the new Retail Banking Model
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Euro
Branch 4
Call Center 3,75
ATM 0,85
Online 0,17
Mobile 0,08
• A same operation made in the ATM can cost up to one fifth of the cost when executed in the branch. • The increase in the absorption rate leads to a better use of the investment of the network. • Current ATM models with new functions can offer a broader range of services to customers.
The increment in the absorption rate has a direct impact over the
network profitability.
Saving ~3,5€
“ Migrating low-added transactions to ATM channel will enable the new branch model, with sales-focused staff, supporting the bank’s strategy and also providing costs saving. “
The key: absorption rate Migrating operations
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Highlighting ATM channel value Safe, flexible and available
In the operation’s migration process, the self-service channel must be a comfortable and safe experience to customers, provided by a omnichannel solution: hardware, software and services
An attractive channel: Clean, available, modern, customized
Quick: Easy to use, operations done quickly, connected with mobile
Intuitive. Friendly interface designed to customers
Humanized: Improves customer relationship
A CONSISTENT AND RICH EXPERIENCE
High capillarity
Broader opening time
Safe environment
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Mobility solutions for self-service channel A safe and mobile experience at the ATM
Design, service and network monitoring. A complete solution from one vendor, taking advantage of synergys from a global leading company in IT solutions.
100% Fujitsu solution
Fujitsu is innovating the self-service channel to build a more efficient, flexible, modern channel and adapt it to current market needs, while searching for the best user experience.
Extended desktop: allows to operate with the ATM taking the complete application to your mobile device.
Mobile payment: operation that you perform from the mobile phone and generates a code, which you can use on a atm to withdraw.
Alert in your mobile phone and SmartWatch warns when your card is being used in a ATM, allowing to block it temporaly.
Mobile solution for field technicians a QR code displayed on the operator screen, shows ATM status, error details and solution.
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CaixaBank: free to focus on core business
0
2000
4000
6000
8000
10000
12000
Approximately 1 in every €4 in Spain withdrawn comes from CaixaBank ATM
CaixaBank – highest Self-Service Channel ROI due
75% Absorption rate :
■ Enhanced customer experience
■ Maximised ROI investment in branch
■ Staff focused on value-added operations a.e. proactive selling .
■ Increase efficiency due reduce cost per earning ratio
Absorption = Branch Transactions during branch opening hours via self-service channel
75
70
65
65
55
50
45
40
3.5
3
2.5
1
2
1.5
Reducing transaction unavailability:
■ Increases absorption
■ Focus in the customer experience
■ Requires more than smart engineering
■ Requires careful planning, and ongoing optimisation.
Absorbtion Non Availability
Non Availability (%) Absorbtion (%)
Source: RBR
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Data Analytics to improve ATM Business
Quick answers to support business decisions:
■ Absorption rate
■ Device profitability
■ Transactions performed
■ Notes dispensing
■ Profiles of customers
■ Geolocation of transactions at ATMs
■ What if?
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