Agenda. The Banker's Dilemma Mapping Your Journey for Tomorrow Creating Meaningful Change in Branches Drivers of Successful Branch Transformation

Transcription

1 Engineering Branch The Right of the Branch Future Experience Strategy Integrating Matters. Delivery New Technologies Matters More.

2 Agenda The Banker's Dilemma Mapping Your Journey for Tomorrow Creating Meaningful Change in Branches Drivers of Successful Branch Transformation 2

3 The Banker s Dilemma

4 The Current State Of Retail Banking Rapid changes are causing the financial industry to rethink their business objectives, strategies and decisions. Rapid digital channel adoption Rise of consumer power Dramatic changes in economy Shift in demographics Increased burden of regulation 4

5 The Banker s Dilemma Industry dynamics and changing consumer behavior are forcing retail financial intuitions to rethink their branch networks. Average number of times a US consumer goes to the branch in a quarter 4 The branch is rapidly becoming the alternate channel 60 % Average share of total operating costs stemming from branch networks Gen Y consumers that prefer the branch over other banking channels 110 Million 24 % Active PayPal Accounts Worldwide To reduce costs and improve profitability you have to focus on your branches You have to make the branch experience relevant to younger consumers You need to reposition your branch network as a competitive advantage 5

6 The Banker s Dilemma Compared to other retailers the banking industry has not yet met consumer expectations. Memorable Experience Cross-Channel Integration Support and Education Exploration and Engagement 6

7 Branches Remain Important Despite economy and technology changes, consumers still prefer branches to open new accounts. 39% Other 61% Prefer Branches 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 financial institution in the branch because they are not sure what they need. They go into bank branches because people inside answer their questions. Source: Diebold Forrester Omnibus March 2013 & Market Rates Insight, June

8 The Evolving Role Of The Branch The branch is a key component to a multi-channel strategy and offers the richest experience to consumers. Financial planning and advising One-to-one marketing and sales Customer service and issue resolution FREQUENCY OF INTERACTION Complex transaction handling Local community branch presence RICHNESS OF EXPERIENCE 8

9 Map your journey for tomorrow, and today.

10 Cash Recycler / Dispenser Service low- to high-volume transactions and provide faster, more accurate transactions. Shifts teller responsibilities from transaction-based to member and reduces queue time Increases branch security Virtually eliminates teller cash drawer 10

11 Deposit Automation Improved member experience 24/7 availability Later cut-off times for deposits Assists with migration to a lower-cost channel Improved member retention Reduces operating costs for offpremise locations 11

12 Innovation Delivered In-Lobby Teller Terminal Transaction migration to lower cost channel Opteva 923 Facilitation of consumer education Opteva 9900 Express lane alternative Increased approachability 12

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14 Innovation Delivered Concierge Video Services TM Enhances consumer experience and services at the ATM Advances targeted marketing Expands access to financial service experts touch points and times Video by choice 14

15 Innovation Delivered Mobile Cash Access Pre-stages transactions at the ATM via the mobile wallet Utilizes Quick Response (QR) codes or Near Field Communications (NFC) to initiate the transaction 15

16 Innovation Delivered Encounter Allows scheduling of branch resources For use on mobile devices, ATMs, on-line banking and Provides check-in and postappointment survey 16

17 Create your vision. Deliver meaningful change.

18 Four Primary Branch Types Select the branch format that most suits your business objectives and location needs. High Efficiency High Engagement Instant Convenience Standard Showcase sq ft 750-2,000 sq ft 2,000-5,000 sq ft 5,000+ sq ft Transaction Focused Essential transactions Most common model Relationship Focused Limited Service Banking Self & Assisted Service Relationship Focused Encourages Exploration Encourages Self-Service Staff support as needed Encourages Exploration Guided Assistance Assistance If Needed Often in metro areas Full and Self Service Full Service Banking Show local presence Lower cost to operate Branding Opportunity 18

19 Standard Branch This type of branch provides a broader range of services and a mix of full and assisted service. Approx sq. feet 19

20 Convenience Branch These branches are staffed with universal associates focused on new business development and customer education. Approx sq. feet 20

21 Drivers of Successful Branch Transformation

22 Five Steps To A Successful Transformation Best-in-class banks understand the journey for long-term success. 1 DEFINE STRATEGY 2 ASSESS PERFORMANCE 3 DEVELOP IMPLEMENT ROADMAP 4 MONITOR SOLUTIONS 5 IMPROVEMENT role of each delivery channel? optimal number of branches and ATMs? consumer experience in each channel? operate more efficiently to reduce costs how profitable are our branches and ATMs? better mitigate operational risks? which solutions will have the greatest impact? prioritize various channel investments? appropriate branch layout? maximize the value of investments? ensure consumers adopt new solutions? engage employees to support new solutions? did we achieve the ROI? impact on transaction migration and consumer experience? next steps to continue improving? 22

23 Create a Comprehensive Branch Transformation Plan Understand the changes required to these key elements within the branch environment. People Process Design Sales Security Technology 23

24 Invest In The Right People. You Will See A Change. Develop your next generation of branch employees. Give them the right goals, tools and training. Branch staff is the primary driver of success. Upgrade your recruiting and hiring process. Branch staff need to know your technology. Update your training curriculum. Migrating to self-service is an art, not science. Develop new job descriptions for your next generation bankers. Converting to universal staff is hard, but worth it. Pay for performance - not transactions. 24

25 Improve Processes With Consumers Experience In Mind Create a unique, sustainable branch experience that keeps consumers coming back. Common sense is often better than policies. Clearly articulate your ideal consumer experience. Many branch processes are no longer relevant. Assess your current performance. Benchmark. Choreograph how consumers are treated. Measure the value of process improvements. Objections to new processes will occur. Be prepared. 25

26 Deploy Technology That Enables Your Strategy Today s technology has not been used optimally. Resist the urge to deploy technology for sake of new technology - ensure its purpose. Technology is an enabler not the solution. Align technology with consumers behaviors. Employee adoption leads to consumer adoption. Create a detailed employee adoption plan Consumer adoption takes time. Create and stick to a consumer communication plan. Self-service lets your staff focus on relationships. Nominate technology champions in the branch to provide aid. 26

27 Rethink Security For Your New Branch Environments New branch designs and consumer processes will require you to address the awareness of security. Security planning should begin when branch designing begins. Address physical, electronic and logical. Consumers want to feel secure. Deploy visible security without being intrusive. Most security is unseen. Ensure consumers understand their personal information is secure. Consider impact to brand integrity. Create a plan that evolves with your branch. 27

28 We are more than a solutions provider, We are your innovation partner. Contact Chris Gill chris.gill@diebold.com