INNOVATION CONFERENCE 2017

POWERING BRANCH TRANSFORMATION WITH INTERACTIVE SERVICES

Kevin Heatley, Director of Technology, SVP, Gorham Savings Bank

Fiona McDade, NCR Global Solutions Management

NCR Innovation Conference 2017: Confidential

Please use the

Innovation Conference

Event App to check-in to this

session #S723

Remember when the question was:

“Where do you bank?”

Source: KMPG

Now it’s:

“How do you bank?”

Banks must completely re-orient their business model around their customer

NCR Innovation Conference 2017: Confidential

The consumer is the change

catalyst, driving the demand for mass personalization.

NCR Innovation Conference 2017: Confidential

Connected ExperienceTransform PhysicalAccelerate Digital

Mobile drives convergence

Integrated with all channels

Both service AND sales

Seamless integrated experience

Reposition the branch to focus on advisory, relationship, sales

Digital zones to handle routine transactions

Reallocate savings to more sales

Customer chooses how, when and where

Based on their preferences, needs and lifestyle

Switch easily between channels

Strategies to reduce cost and transform both consumer and staff experience

Virtual interactions are an untapped opportunity.

41% of North American consumers are willing to use remote channels for advice, but only 22% are using them today.

By identifying customers who are most receptive to having virtual interactions, banks can tap into the full potential of the omnichannel experience.

McKinsey © 2017The Winning Formula for Omnichannel Banking in North America

NCR Interactive Teller will transform your retail performanceBenefits realized by our 450+ North American customers

NCR Innovation Conference 2017: Confidential

40%Reduction in

Costs

88%Increase in Customer

Service Hours

35%Increase in

Member Acquisition

60%Increase in

Branch Sales

Source : NAMER CU’s

87% of US consumers still see themselves using branches in the future, and they want human interaction when they go there.

Accenture © 2016

North American Consumer Digital Banking Survey

The branch bank is evolving.

The old branch model that relied on sheer numbers to win market share is being replaced by a more focused, customer-centric approach.

JLL © 2017

US Banking Outlook

Banking 2017 - The Branch is not dead, it’s evolving…

Source: 2017 ATM and Software Trends NetWorld Media Group

Source: Accenture

Branch Transformation – Showrooms, Stores and Service CentersAt the Heart of Relationship Banking2017 – 2020: Consumers demand Human interactions and Banks increasingly drive relationship

banking, diversify services and accelerate digital transformation.

Banking 2017 - The Branch is not dead, it’s evolving…

Source: 2017 ATM and Software Trends NetWorld Media Group

Source: Accenture

“Today’s ATMs are able to perform up to 90% of teller transactions without an onsite teller”

Branch Transformation – Showrooms, Stores and Service CentersAt the heart of Relationship Banking2017 – 2020: Consumers demand Human interactions and Banks increasingly drive relationship

banking, diversify services and accelerate digital transformation.

Tomorrow’s winners will be characterized not only by their technological prowess, but also by their ability to use that technology to empower their staff.

It is this combination of people and technology that will truly create competitive advantage in the future.

Accenture © Tech Vision Report 2017

NCR Innovation Conference 2017: Confidential

NCR Interactive Services.Local or remote assistance, merging the physical and digital channels

In person Assisted Service

Remote Assisted Service

INTERACTIVE TELLER

INTERACTIVE BANKER

ATM Self Service

INTERACTIVE EXPERT

Respond, Approve, ShowTrack, RespondConsult, Advise, Sales

Understand, Learn

& Optimize

APPOINTMENT MANAGEMENT IN BRANCH ASSISTANCE MI DATA

NCR Innovation Conference 2017: Confidential

Make Self Service Personal

Banks need to create opportunities through sales and service touchpoints to route customers back into a conversation with a staff member.

Staff members must be fully empowered by technology and data to offer the best advice at the right time. Accenture © Tech Vision Report 2017

NCR Interactive Banker, Changing the Banker ModelInsight, Control & Sales Orchestration

NCR Innovation Conference 2017: Confidential

Phase 2:

• IB ‘CRM & Sales’• European Customer

project

Control

12

3

Sales

One View

Visibility over customer sessions, devices and real-time control over transactions

NCR – Confidential - Use and Disclose Solely Pursuant to Company Instructions

Ch

an

gin

g t

he B

an

ker

Mo

del

Know your customerView, track and analyzeself service interactions

Provide offers or referrals for sales enablement

Identify customers seeking assistance

Personalized service with detailed view of customer

accounts

Transaction control, decisioning and approvals

Staff have a detailed view of health of devices

Increase availability with view of cash positions in cassettes

NCR Innovation Conference 2017: Confidential

NCR Interactive ExpertChannel holistic engagement across expanded hours, locations, devices

NCR Innovation Conference 2017: Confidential

In-branch Video Room or Kiosk

Video allows branches to instantly augment staff with product &

service experts

Anywhere Integration

Offers expertise from any channel as a stand-alone app

or embedded in existing applications

Share

Screen

Share

Screen

Customer’s own device

Multi-channel solution available across all digital

platforms, combined routing with NCR Interactive Teller

NCR Confidential 17

Falling short on human interaction creates major consequences.

• A negative experience has four to five times more impact than a positive one.

• Fully engaged customers own 2.7 times more financial products than inactive customers.

BAI Banking Strategies Executive Report © 2016

NCR Interactive Teller will transform your retail performanceBenefits realized by our 400+ North American Customers

NCR Innovation Conference 2017: Confidential

40%Reduction in

Costs

88%Increase in customer

service hours

35%Increase in

Member acquisition

60%Increase in

branch sales

Source : NAMER CU’s

POWERING BRANCH TRANSFORMATION WITH INTERACTIVE TELLER AND INTERACTIVE BANKEROctober, 2017

Kevin Heatley, Director of Technology, SVP, Gorham Savings Bank

GORHAM SAVINGS BANK

• Headquartered in Gorham, ME

• $1 billion in assets

• 17 locations

• 200 employees

• Core system is FIS Horizon

• Large commercial lending base

Dedicated to improving the economic and social well-being of our customers and the communities we serve.

GSB INTERACTIVE TELLER HISTORY:

WE CALL IT “BRANCH IN A BOX”

• Researched ITMs for 5 months,

including 4 site visits

• Installed 1st ITM in May, 2015, in brand

new location

• Installed 2nd ITM in September, 2015, in

self service location (GSB Express)

• Installed 3rd & 4th ITMs in the drive thrus

of 2 busiest branches in summer, 2016

• Installed 5th ITM in April, 2017, in brand

new location

Dedicated to improving the economic and social well-being of our customers and the communities we serve.

BEYOND ITMS, WE CHANGED

TELLER DUTIES AND LEVELS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 22

UNIVERSAL BANKER DUTIES

• Less transaction focused

• More sales and cross selling focused

• Open deposit accounts

• Close consumer and mortgage loans

• Deeper conversations with clients

– Fraud reporting

– Life changes

– Business opportunities

– Referrals

– Educate on digital channels

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 23

UNIVERSAL BANKER PROS / CONS

• PROS

– More efficient way to serve clients (immediate help)

– Lower volume for more costly transaction channel

– Elevate and empower staff

– Helps with retention (compared to tellers)

• CONS

– Have to pay them more than traditional branch staff

– Accelerated onboarding process

– Need more ongoing training

– Branch coverage is more challenging

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 24

HOW DO ITMS HELP THIS MODEL?• Offload routine teller transactions from UBs

– Cash and check deposits

– Withdrawals

– Loan payments

– Address changes

– Check reorders

– Basic banking questions

• Extends the branch hours

– Fewer clients are coming into the branch during business hours

– Clients have more options closer to home after hours

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 25

HOW ITMs WORK AT GORHAM SAVINGS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 26

The Main Office: Main Street,

Gorham, ME

3 lanes:

• ATM & Night Drop,

• Live teller via tube,

• and Branch in a Box (removed a

tube for the ITM)

HOW ITMs WORK AT GORHAM SAVINGS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 27

HOW ITMs WORK AT GORHAM SAVINGS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 28

GSB ITM Teller Workstation (meet Lindsay!)

HOW ITMs WORK AT GORHAM SAVINGS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 29

Security camera feeds for each ITM

HOW ITMs WORK AT GORHAM SAVINGS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 30

HOW ITMs WORK AT GORHAM SAVINGS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 31

Desktop display: video camera, Teller Now (left, front), Core Teller

(left, back), ITM dashboard (right), and headset (right)

HOW ITMs WORK AT GORHAM SAVINGS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 32

HOW ITMs WORK AT GORHAM SAVINGS

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 33

Branding wall behind the ITM Teller

CLIENT ADOPTION

• Not for business

• Not for all (look at your branch client profile)

• Just as fast as teller (with teller capture)

• Very high return usage rate

• Customers love the extended hours (7:30-6, 5 days a week)

• Need more education!

– It’s not just an ATM!

– It’s not like the self-serve line at the grocery store

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 34

THINGS WE LEARNED

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 35

• There are a LOT of other FIs installing ITMs –

learn from them!

• A lot more challenges with placing ITMs in a

lobby (vs. tellers)

• Remember customer perception

• Not for all clients (technology)

• Metrics

• In the drive thru, you can’t give out lollipops

and dog treats!

THINGS WE LEARNED

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 36

Signage

WHERE WE ARE HEADED

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 37

Bringing ITMs into a Wealth@Work program

More ITMs at branch drive-thrus

Extend ITM hours?

Reduce branch hours?

Fully automate branch(es)?

QUESTIONS?

Dedicated to improving the economic and social well-being of our customers and the communities we serve. 38

You can earn 10 points toward the

Innovation Game right now!

Please go to “Schedule” in the

mobile app, find this session, and

take a short survey to provide

feedback.

Surveys will remain open for 2

hours.

Check in code is S723

39NCR Innovation Conference 2017: Confidential

PLEASE GIVE US YOUR FEEDBACK!

INNOVATION CONFERENCE 2017

THANK YOU

NCR Innovation Conference 2017: Confidential