Making Leaders Successful Every Day

Transcription

1 Making Leaders Successful Every Day

2 Client Onboarding In The Age of The Customer Forrester Research Craig Le Clair VP, Principal Analyst

3 Agenda Research goals and approach Current onboarding approach inconsistent with age of customer trends Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case Management and custom-built solutions Recommendations 2014 Forrester Research, Inc. Reproduction Prohibited 3

4 Agenda Research goals and approach Current onboarding approach inconsistent with age of customer trends Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case Management and custom-built solutions Recommendations 2014 Forrester Research, Inc. Reproduction Prohibited 4

5 Research Approach Targeted LOB Managers And Directors With 20% in IT Roles $500 Billion or more in assets under management $20 Billion to less than $500 Billion in assets under management $5 Billion to less than $20 Billion in assets under management $2 Billion to less than $5Billion in assets under management 20% 24% 27% 29% Investment banking 54% Wholesale banking 15% Commercial banking 31% EU 48% APAC 26% North America 26% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

6 Agenda Research goals and approach Current onboarding approach inconsistent with age of customer trends Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case Management and custom-built solutions Recommendations 2014 Forrester Research, Inc. Reproduction Prohibited 6

7 We Have Entered The Age Of The Customer October 2013 Competitive Strategy In The Age Of The Customer 2013 Forrester Research, Inc. Reproduction Prohibited

8 Most Enterprises Middle Of The Pack For Customer Experience Base: US online consumers who have interacted with brands in these industries Source: North American Technographics Customer Experience Online Survey, Q (US)

9 Client On boarding Greatly Affects Life-Time Value Not at all - once signed up no matter how painful - i.e., it depends on overall experience 9% On boarding has a moderate overall effect of life time value 48% The on-boarding experience has a strong influence on life-time value 40% 88% believe the on-boarding process impacts life-time value Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

10 Lost Deals And Revenue Can Run Into The Millions What percentage of revenue are lost due to problems in your current on-boarding process? And, what percentage of deals are lost due to problems in your current onboarding process? Deals Revenue More than 50% 6% 11% 26-50% 14% 21% 1-25% 34% 38% None 3% 2% Don't know 36% 36% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

11 Time To Deal Consummation Is The Killer When a customer drops out of the on-boarding process, what are the most common reasons? It took too long to get a credit decision/other bank gave me response faster 26% 16% 16% Too many divisions or people to coordinate 15% 16% 21% Poor support of current methods of communication 14% 15% 16% Just too much information required 11% 20% 11% Frustration due to use of old paper-based methods (e.g., paper forms, fax, and wet signature) 15% 16% 11% Filling in information that the company already has 9% 13% 16% Lack of 'off-line' support 9% 4% 9% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

12 KYC And Drumbeat For Transparency Challenge Banks 2013 Forrester Research, Inc. Reproduction Prohibited 12

13 KYC Tops Lists Of Painful Areas Please rank the following client on-boarding phases below in terms of which presents the top three challenges Know your customer/due diligence 19% 17% 14% Credit underwriting/risk Sanctioning 17% 19% 13% Final pricing/sales 14% 11% 15% Initial deal configuration & pricing 13% 16% 8% Fulfillment of cash, trade, or investment accounts & services 12% 10% 15% Closing and funding of credit 4% 10% 18% Application data gathering 12% 11% 9% Sales engagement handoff 9% 6% 8% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

14 North America Sees Value In Client Interactions APAC Sees Cost Advantages What would be the top business benefits as a result of enhancing the customer experience with a unified 'client-centric' approach? APAC EU North America Improved client interactions/experience that emphasize overall client needs across the entire value stream 38% 48% 58% Reduce redundant capabilities and costs that exist in multiple silos 51% 40% 44% Improve cross-sell and upsell revenue opportunities 46% 40% 44% Provide a more seamless self-service approach for client administration 30% 31% 44% Ease the migration to a more mobile and digitized customer experience 22% 31% 33% Create more formal idea sharing among product groups 24% 24% 17% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

15 Product-Centric Approaches Affect Top And Bottom Line What areas are most adversely affected by multiple disparate cross product and department integration? Technology costs and maintenance expense Missed sales opportunities 38% 37% Regulatory Compliance Speed of process change Decision making for capital and liquidity management decisions 31% 31% 33% Speed to revenue for new clients/services 28% Lack of reporting and insight for critical business decisions Client Experience or Net Promoter Scores Data integrity due re-keying 25% 24% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

16 Process Problems Affect All Phases Of Onboarding For each phase, select top internal process and systems issues encountered in onboarding new business accounts Collecting the right information while maintaining customer experience Too many inconsistent internal user interfaces Presenting the right information to clients at the right stage in the process Inability to get a holistic view of operational and other data Too complex a process for assigning and managing system permissions for customers Re-keying or wasted time coordinating various systems of records, core systems, and packaged apps each with its own record-keeping needs Connecting with the institution via digital channels Operational Reporting /Key Performance Indicators Poor response and escalation mechanisms for issues Sales engagement handoff Application data gathering Know your customer/due diligence Initial deal configuration & pricing Credit underwriting/risk Sanctioning Final pricing/sales Closing and funding of credit Fulfillment of cash, trade, or investment accounts & services 16% 47% 53% 41% 33% 30% 42% 29% 23% 31% 36% 35% 25% 28% 40% 25% 32% 31% 33% 55% 28% 40% 13% 27% 26% 24% 30% 24% 29% 28% 29% 31% 35% 49% 30% 29% 28% 11% 20% 40% 19% 60% 29% 31% 36% 26% 36% 37% 23% 24% 27% 37% 33% 25% 9% 31% 45% 36% 23% 20% 38% 46% 11% 31% 29% 20% 27% 31% 39% 37% 24% 27% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

17 Across All Banking Products, A Majority Of Customers Still Get Paper Mailed To Them November 2013 Time For US Banks To Get Tough And Turn Off Paper For edelivery Customers Base: US online adults (18+) who receive monthly account statements for the specified product/account Source: North American Technographics Financial Services Online Benchmark Recontact Survey, Forrester Research, Inc. Reproduction Prohibited

18 Agenda Research goals and approach Current onboarding approach inconsistent with age of customer trends Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case Management and custom-built solutions Recommendations 2014 Forrester Research, Inc. Reproduction Prohibited 18

19 Client-Centric Onboarding Is Important To Banks How important to the overall on-boarding process is the creation of a unified 'client-centric' onboarding experience to your firm? 34% 38% 24% 4% 5 - Very important 4 - Important 3 - Somewhat important 2 - Not that important 1 - Not important at all 72% of respondents list this as important Not important at all: 0% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

20 The Majority Of Banks Cannot Create An Initial Client Profile Which of the following describes your capability to create an initial 'client profile' by accessing a customer information system, customer relationship management (CRM), or other repository first to gather pre-existing information? Planning to implement or expand 60% 24% 15% 1% Currently implemented but not looking to expand at the moment Interested/exploring Grouped Currently implemented and looking to expand, Planning to implement in 2014, and Planning to implement by the first half of 2015 Not interested Base: 135 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

21 The Bigger The Bank The More Important How important to the overall on-boarding process is the creation of a unified 'client-centric' onboarding experience to your firm? By Assets Under Management 5 - Very important 4 - Important 3 - Somewhat important 2 - Not that important 1 - Not important at all $500Billion or more in assets under management 52% 21% 21% 6% $2Billion to less than $5Billion in assets under management 39% 32% 29% $5Billion to less than $20Billion in assets under management 27% 44% 24% 5% $20Billion to less than $500Billion in assets under management 24% 50% 21% 3% Base: 140 Banking decision-makers in North America, Europs, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

22 Collaboration Will Break Down Silos Thinking about internal processes, which improvement in communication do you believe will have strongest positive impact on the onboarding process? Better collaboration among workers - front and back office - thru a single on boarding process view Better collaboration between customer and relationship manager during on boarding 25% 24% 15% 16% 14% 19% Automate and simplify multichannel communication tasks 14% 21% 14% Sharing information across departments, IT, and channels 14% 14% 19% Capturing s and activity streams within the process to provide greater context 9% 12% 13% Leverage internal social activity streams to optimize what should be done 8% 11% 13% Better alerts and notification for tasks 7% 11% 9% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

23 Self-Service Client Communication Is Sorely Needed Thinking about client interactions during onboarding, what would most improve the process? On-line customer portal where request status, pre-filled documents and other communications can be shared during the onboarding process for 28% 23% 24% More timely and consistent customer communication with the customer through all channels (i.e., , mobile, secure portal) 16% 24% 15% Prefill from existing databases for known client data eliminating re-entry 19% 13% 14% Electronic signature 13% 13% 12% Leverage of public information for prefill followed by prompts for completing unknown data 12% 9% 16% Tablet/mobile based initial onboarding steps and ongoing status /communications embedded in Sales/CRM tool 8% 11% 13% Fax to mail technology to automate/stp fax collection 4% 6% 6% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

24 Basic Workflow Automation Is Sorely Needed Thinking about future onboarding process, select 3 capabilities you would like to improve. Automated extraction and capture of data into system of record or other 39% Intelligently route work based on best available resource for completing a Automated business rules applied for each product and step Use of Having information in context - the right information at the right time - at 36% 35% 35% Ability to browse the related data of cases, independently of processes An application that can be edited by the line of business or business Recommended experts or managers on a particular task in real time A process that starts with a selection of goals allowing the flow of work Ability for internal workers to have the flexibility to alter the standard g 32% 32% 31% 30% 29% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

25 Agenda Research goals and approach Current onboarding approach inconsistent with age of customer trends Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case Management and custom-built solutions Recommendations 2014 Forrester Research, Inc. Reproduction Prohibited 25

26 The Onboarding Battleground Will Be Speed and Handling Exceptions Opportunity for Advice, cross-sell and customer experience The cost of doing business Production Limitation of product-centric transaction systems 75-80% Straight through follows the happy path

27 The Onboarding Battleground Will Be Speed and Handling Exceptions Opportunity for Advice, cross-sell and customer experience Structured Collaboration Requires interaction with 15-18% colleagues Custom Extensions The cost of doing business Production Limitation of product-centric transaction systems 75-80% Straight through follows the happy path

28 The Onboarding Battleground Will Be Speed and Handling Exceptions Opportunity for Advice, cross-sell and customer experience 2-4% Ad hoc Structured Collaboration Requires ad hoc interactions to resolve exceptions Requires interaction with 15-18% colleagues Custom Extensions The cost of doing business Production Limitation of product-centric transaction systems 75-80% Straight through follows the happy path

29 The Onboarding Battleground Will Be Speed and Handling Exceptions Opportunity for Advice, cross-sell and customer experience 2-4% 1-2% Ad hoc Structured Collaboration Unique problem, requiring supervision Requires ad hoc interactions to resolve exceptions Requires interaction with 15-18% colleagues Custom Extensions The cost of doing business Production Limitation of product-centric transaction systems 75-80% Straight through follows the happy path

30 Client-Centric Onboarding May Come From A Mix Of Sources Where do you believe new functionality to improve your on-boarding process will come from? APAC EU North America Built-for-purpose application, built specifically for on-boarding 49% 33% 28% New applications developed in house (e.g., java programming) 38% 37% 33% CRM vendor with modifications BPM/case management provider with on-boarding framework (e.g., that gives you 60% of solution rules and processes to be extended /configured Your core system provider, e.g., loan origination system Provider of business process management (BPM) or case management technology Moving to a SaaS model 30% 28% 35% 33% 30% 36% 27% 21% 19% 22% 21% 8% 22% 22% 36% Don't know 14% Base: 140 Banking decision-makers in North America, Europs, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

31 Agenda Research goals and approach Current onboarding approach inconsistent with age of customer trends Client-centric onboarding is the goal for most Deployment approaches are a mix of BPM/Case Management and custom-built solutions Recommendations 2014 Forrester Research, Inc. Reproduction Prohibited 31

32 Tomorrow s Onboarding Work Requires New Adaptive Features March 2014 Knowledge Work Pushes The Dynamic Case Management Market 2014 Forrester Research, Inc. Reproduction Prohibited

33 And New Ways To Measure Progress Which of the following is the most important measure of success for the on-boarding process? Customer experience metrics 35% Quality/error measures 28% Cross-sell upsell during or as a result of 25% Cycle time 12% Base: 140 Banking decision-makers in North America, Europe, and Asia Pacific Source: Pegasystems TLP, a commissioned study conducted by Forrester Consulting on behalf of Pegasystems, April, 2014

34 Thank you Craig Le Clair VP, Principal Analyst

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36 Overview - Better Business Software Framework Accelerators Built on Pega 7 Pega Solves Key Onboarding Pain Points Pega Clients Journey to Unified Onboarding Solution Comparison Framework Example Onboarding & KYC/FATCA Why Pega for Onboarding Pegasystems Inc.

37 Better Businesses Software Delivers The Power to Engage 30% REVENUE GROWTH Raised customer satisfaction 40% above competition Global multichannel customer care excellence Achieved 400% increase in online account opening Improved KYC to reduce time to revenue by 70% The Power to Simplify 40% PRODUCTIVITY GAIN Increased dispute resolution speed by 70% Group-wide simplification to cut 1.5B Boosted end-toend lending efficiency 50% Service automation backbone across 104 countries The Power to Change 5X FASTER TO MARKET Zero training required for most front office staff Doubled business & tripled market share More than doubled loan modifications in 6 months From prototype to production in one month Pegasystems Inc.

38 How Better Businesses Engage, Simplify & Change Enga ge Simpli fy Chang e ebam Execution Gap SYSTEMS OF Pegasystems Inc.

39 How Better Businesses Engage, Simplify & Change Enga ge Simpli fy Chang e ebam BUSINESS PROCESS ANALYTICS DECISIONING CASE INTEGRATION MOBIL SOCIAL E CLOUD SYSTEMS OF Pegasystems Inc.

40 Customer Engagement & Business Process Solutions FRAMEWORK ACCELERATORS BUILT ON PEGA S AWARD WINNING BPM PLATFORM Sales Force Automation Next Best Action Marketing KYC with FATCA Client Onboarding Client Servicing & Service Case Management Exceptions & Investigation s Pre-built software, targeting high ROI-yielding areas 5x speed to market 30% lower costs FEATURES Pre-defined work types and objects Foundational data sets Core work processes and decisioning Packaged user portals and UIs Standards and best practices built-in Pegasystems Inc. Built By Industry Experts For Rapid Enterprise Success And Agility

41 Pega 7 Technology Solves Onboarding Pain Points Top Pain Points From Forrester Survey For each phase, select top internal process and systems issues encountered in onboarding new business accounts Sales engagement handoff Application data gathering Know your customer/du e diligence Initial deal configuratio n & pricing Credit underwriting /Risk Sanctioning Final pricing/sales Closing and funding of credit Fulfillment of cash, trade, or investment accounts & services Collecting the right information while maintaining customer experience 47% 53% 41% 42% Presenting the right information to clients at the right stage in the process 32% 33% 55% 40% Too complex a process for assigning and managing system permissions for customers 35% 49% 40% Re-keying or wasted time coordinating various systems of records, core systems, and packaged apps each with its own record-keeping needs 60% 36% 36% 37% Connecting with the institution via digital channels 37% Operational Reporting / Key Performance Indicators 45% 38% 46% Poor response and escalation mechanisms for issues 39% 37% Pegasystems Inc.

42 The Unified Onboarding Journey PEGA CLIENT CAPABILITY PROGRESSES IN STAGES In working with our clients we find the are beginning to fall into a pattern: Point Solution The first implementation on the journey. Examples: Regulatory penalties or scrutiny causes an urgent need. Example KYC/FATCA, or other process improvements. Single business case speed of corporate lending underwriting response causing lost business. Radiation The extension of point solution capabilities to adjacent products, divisions or client lifecycle stages. Examples: (This is typically where a packaged application and custom development become a challenge A KYC/FATCA solution is extended to onboarding. An onboarding solution is extended from Capital Markets to Transaction Services Strategic Transformation Client has made the decision to extend Pega to multiple divisions and products for all stages of onboarding Client creates a roadmap of highest revenue/customer impact/cost onboarding processes across C&IB and marches down the list Pegasystems Inc.

43 Solution Type Comparison PEGA 7 LEADS THE PACK WITH SPEED TO REVENUE, AGILITY & SCALABILITY Key Features Solution Types Knowledge, expertise, and processes from multiple clients built-in Ability for business users to change rules, process & workflow in days vs months Can easily scale into multiple regions, product lines or business units with re-use of rules & integrations Speed to revenue across all onboarding phases Speed of change for new processes driven by market changes or new regulations With Frameworks & Extenders Built For Purpose Package Application In-house custom development (e.g.., Java programming) CRM Vendor with modifications Other BPM/Case Management tools Pegasystems Inc.

44 Unified Onboarding, KYC/FATCA STREAM-LINED ONBOARDING AND 70% FASTER TIME TO REVENUE On-boarding CRM Rules-Driven KYC Technology Country SDD Requirements Legal Entity/ Booking Entity Products EDD Requirements Underlying Parties Dynamic Risk Rating Screening Integration Suitability Requirements FINRA MiFid Driver Data Type Risk Legal/Mailing Existing Client FATCA Requirements Relationship Management: 360 View ABC Corp Jane Doe John Doe ABC Corp Acme Jane Doe John Doe Bob Smith Driver Data Multiple Streams Tax Reporting System 44 ebam 2014 Pegasystems Inc. Rules-Driven Suitability/Product Age Selection Income Risk Tolerance Investment Experience Investment Objectives Products Booking Location Security Futures Higher Risk Hedge Fund Higher Risk Mutual Fund Lower Risk Audit & Reporting System of Record Agility: Designated business users can update rules and processes as risks and

45 Situational Layer Cake Example KYC & FATCA SPECIALIZED RULES BY GEOGRAPHY AND BUSINESS LINE Business Rule Changes Regulations Change Risks Change Suitability Wealth Securities Investment Banking Asset Management US UK FATCA: IGA Singapore Europe MiFID Common CDD/EDD Policies and Procedures (i.e. AML) Global Corporate Governance APAC FATCA Differences: Type of Customer Product Type Business Line Customer Profile Regulation Common Practices Pegasystems Inc.

46 Dashboarding and Case Urgency Solves POOR RESPONSE AND ESCALATION MECHANISMS FOR ISSUES & OPERATIONAL REPORTING / KEY PERFORMANCE INDICATORS KYC Dashboard Pegasystems Inc.

47 Why Clients Choose Pega for Onboarding Solutions Pegasystems Inc. Optimize the Client Experience Deliver consistent, organized, and client-centric onboarding experiences to start the relationship right Maximize Onboarding Efficiency Eliminate error-prone manual processes and easily integrate with legacy systems to streamline the endto-end process, thereby reducing cost & cycle time Automate and Improve Compliance Improve KYC/FATCA due diligence with rules-driven processing that dynamically supports specialization by regulatory jurisdiction, country, line of business and other key factors Respond immediately to changing regulations, competitive challenges and new business Accelerate Response to Change

48 R E G I S T E R AT: Colleagues from the Pega Community Learn the Latest in Pega Technology with Hands-on Training Sessions and Workshops 200+ World s Leading Companies Unlimited Networking Opportunities Customer Success Presentations 2014 Pegasystems Inc.

49 Questions Ron Wellman Industry Principal Commercial Banking Phone: Website: LinkedIn: Reetu Khosla Director, Industry Principal Risk, Fraud, Compliance Phone: Website: LinkedIn: Pegasystems Inc.

50 BETTER BUSINESS SOFTWARE FOR THE DIGITAL ENTERPRISE Build for Change Pegasystems Inc.