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NCR Confidential
BRANCH TRANSFORMATIONNCR solutions and services delivering disruptive change to bank revenue models and physical network distribution
Jenny Clawson, Branch Transformation [email protected]
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Demand for Physical and Digital Channels
Customers now expect multiple ways to interact with you. They want to engage when, how and where it’s easiest for them.
Source: FMSI, NCR, Tower Group
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2009 2010 2011P 2012P 2013P
Percen
tage of A
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BranchOnlineContact Center
But branches are not going away
Source: CEB Tower Group 2011
New Account Origination by Channel (2009-2013P)
Most accounts are still opened in the branch.
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Branch Fundamentals Are Changing Rapidly
• Teller transactions have decreased 31% in the last 10 years (FMSI Annual Teller Line Study)
• Branch transactions are projected to decline another 14% by 2015
• ATMs are projected to grow 6% by 2015
• Branches remain the key sales locations - 90% of all current accounts are opened in the branch (Deloitte)
MAJOR BANKS PURSUING BRANCH TRANSFORMATION AS A RESULT
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Forces of change: “The New Consumer”
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2012 is a milestone year. Children born in 1994 will turn 18 – becoming the first adults to live their
entire life in the presence of online retailing.
Omni‐channel}
}Multi‐channel
Singlechannel
46% of all 18‐24 year‐olds would choose access to
the internet over access to a car.
While multichannel shoppers are good for business – they spend
15‐30% more than single‐channel
Source: Yahoo Finance, “Eight Products the Facebook Generation will not Buy” – April 2012
Omni‐channel shoppers are better for business – spending 15‐30% more than
multi‐channel shoppers
New Consumer
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Why Teller?
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Too ComplexDon’t know how
Teller Addict
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Branch Trans
Teller TransATM/SSAssisted SS
Teller Transactions Branch Trans 2.0Branch Trans 1.0
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Value of Assisted Service
Leveraging self service to deliver the next generation oftransaction efficiency, consumer experience and sales opportunities
Strategic and economic impetrative to:• Migrating next phase of routine transactions to self service• Simultaneously improve the consumer experience and sales generation
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1 1 0.8 1
Full Service
0 1
Self Service
Staff Consumer
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Assisted Service (In Person and Remote)
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Remote Assistance for Self-Serv
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The travel industry has taken innovative steps to:• Create a seamless
consumer experience that spans multiple channels
• Disruption and automation of the check-in process
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In-Person Assisted Self-Serve
Consumer have embraced self check-out at super-markets and retailers:
• Consumers self select based on convenience, speed and size of ‘basket’
• Retailers deployment strategies vary based on financial objectives
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NCR Interactive Portfolio
InteractiveEXPERTInteractiveEXPERT
InteractiveTELLERInteractiveTELLER
InteractiveBANKERInteractiveBANKER
Facilitation of remote transactional banking
through direct device and self service interaction
Facilitation of in person transactional banking via
banker capable of intervention and over-ride of
self service interaction
Allows remote experts to fulfill product sales through
video and remote device control whether the
customer is in the branch, online or on a mobile device.
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“Wells Fargo Reimagines the Bank Branch”WALL STREET JOURNAL – APRIL 13, 2013
• Full service branch banking format delivered in 1,000 sq. ft. or less of space
• Customers will be able to interact with a roving bankers who are available to assist during business hours and then the branch converts after hours to a 24 hour self-service zone.
• The capital and operating costs of the branch are ~50% less than a traditional branch, while offering similar levels of sales, service, and transaction capabilities.
• NCR is the branch design and self/assisted-service technology partner for the project.
SOURCE: Articles and press in the public domain 12
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Employee
Interactive Teller
Interactive TellerInteractive Teller
NCR
Framework
Consumers
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See & speak with a LIVE teller
Transaction types:95%
• Cash Deposit
• Check Deposit
• Check Cashing
• Cash & Coin Withdrawal
• Account Transfer/Payments
• Customer Service Inquiries
• Bulk Note and Check Accepter
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NCR Interactive Teller
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+138%Teller Referrals
+15%Asset Growth
-50%Reduced cost per transaction
-41%Teller line cost reduction
NCR Interactive Services Update Customer case study results on key operating metrics of retail distribution
+86%Service hours expansion
+70%Same store product sales
Acceptance Among Demographics
Current User
Potential User
>65 64-55 54-45 44-35 34-25 24-18
100%
50%
0%
DAT
A U
NAV
AIL
AB
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Source: Consumer Research White Paper 2010
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> 132 FI’s 500 Units 41 States 10 Countries
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Branch of the FutureW
ithdr
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Acco
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Che
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ents
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Express Branch
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Micro Branch
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Louisiana Style
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Structuring higher profitability ‘points of presence’ around the consumer
• New branch assets annual operating costs down 51% compared to traditional branch
• Annual sales up 76% ($792k) through service expansion
Points of presence: 4 Points of presence: 9
Branch
ATM
Iconic
Express
Micro
Self Service
ATM
Today Tomorrow
Target segment/micro market
Deliver alternative distribution network for ~42% of traditional branch costs
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US Bank at NC State University
Solution Business Drivers achieved:•Expanding service delivery footprint to new markets•Eliminating traditional building and staffing costs•Increasing brand penetration to non-traditional locations•Offering extended banking hours as a competitive differentiator
Brand Bank
• Early deployments at mortgage offices –terminals present at locations without a previous teller presence
• First units deployed at a mortgage office saw $700k+ in new deposits in the first week
• Offering of new account openings to be serviced over the Interactive Teller
Expanding Network Distribution and Enhancing Service
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Business Case Study: American Heritage
American Heritage CUGrocery Store Branch
Welcome Station, 2 PTMs, offices
Focus on Sales and Service
1400 New accounts 1st Year1100 New accounts 2nd Year$7M in Assets migrated
GECU
• 400% improved FTE utilisation• Average teller wait time cut to 20 seconds
• Average session time of 2.5 minutes• 89% of GECU members say they prefer the Interactive Teller because of expedited service
• GECU is now achieving 50% of lending sign‐ups over interactive solutions
Enhancing Consumer Experience and Growing Existing Market
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Time Convenience- Dollar Bank
Prior to ITM, No Branch Hours after 7Now 23.4 % of activity is after 7
26% of Mon-Friday activity is after 7
Busiest TimesSaturday 3 p.m.-7 p.m.Mon-Fri 5 p.m.-8 p.m.
Saturday ExperiencePrior to ITM, hours were 9 a.m. 3 p.m. (volume was light)
First Capital Bank of Texas24 x 5 • Catering to a customer base heavily concentrated in the manufacturing, medical, and oil industries
• Combine Cash Recyclers in Branch and Interactive Teller in Vestibule and Drive‐up
• Solve Teller Turnover Issues
Expanding Service Hours
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Business Case Study: MHV
22 PTMs in ten branches
2 Drive-Up units
24/7 teller services
65% visits outside branch hrs*
28% visits on weekends*
Mid-Hudson Valley FCU
United Bank<iframe width="560" height="315" src="//www.youtube.com/embed/BH_vLaUXqCQ" frameborder="0" allowfullscreen></iframe>
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NCR Presentation Template23/10/2014 32
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63 PTMs, 6 38AIT in 16 branches
40 centralized Tellers
87% increase in teller service hours
Two pay grades increase
40% reduction in teller labor costs
Sales-focused branches
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Business Case Study: CFCU
Coastal Federal CU
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69%SALES / FTE / DAY*
• 15 branches• 2.8 Products Per FTE per DAY
Sales & Service Focused Branch- Coastal FCU
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How Does Interactive Teller Change the Branch?
Extend reach into new locations
Extend Hours
Pneumatic Tube Replacement
More Efficient Staff Deployment
Create a Sales-Focused Branch
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