Optimizing the Value of the Commercial Web Channel

Transcription

1 Optimizing the Value of the Commercial Web Channel April 13, 2011 PRESENTED BY: Jacob Nygren, CTP 2011 Treasury Strategies, Inc. All rights reserved.

2 Agenda 1. Assessing the Landscape 2. Three Key Ideas to Optimizing Value 3. What is the Payoff? 4. Closing Remarks 5. Q & A 2

3 Background & Overview Regulation Interest Rates Paper to Electronic Commoditization 3

4 Revenue Opportunities Transactions Information w w w. T r e a s u r y S t r a t e g i e s. c om 4

5 Treasury 3.0 Transaction Banking Timeline $1T+ TS 1.0 TS 2.0 TS 3.0 Revenue Intelligence Data Information $100B $0 Time Future 5

6 The Web as a Channel Bank-wide Service Delivery Web Branch Telephone Bankers Mail ATM Mobile Client Experience Implementation Risk Management Product Delivery Branding Customer Service Information Management Marketing Communication Education 6

7 The Web as a Channel A client has many options to interact with the bank. However, the web is more often becoming the primary means of contact due to its diverse capabilities. Mobile Telephone Pad Devices Online Self-help Face-to-face Real-time Web Chat 7

8 The Web as a Channel Banks spend 2% on the web platform 1/4 of IT spend goes to the web platform Total IT Spend 45% 8.5% of Fee and Spread Revenue Discretionary IT Spend 3.8% of Fee and Spread Revenue 50% Web Platform Spend 1.9% of Fee and Spread Revenue * Treasury Strategies 2009 IT spend benchmarking study; 8 banks provided data 8

9 Optimizing Value There are 3 key things that banks can do to optimize the value of the web. 1. Functionality 2. Differentiation 3. Pricing 9

10 Functionality: Value-add Features & Functions User-driven customization Drag and drop organization Look and feel Workflow Widgets and dashboard customization Cross-channel integration Mobile ATM Branch Self-service Data Aggregation & Analytics 10

11 Functionality: Staying Ahead of the Curve As we look ahead, several trends are emerging which will impact client needs and expectations of their online banking platform. Improved ease of use Greater customization (passive and active) Targeted messaging Behavioral analytics Cloud computing Competitor comparisons Peer benchmarking More information Wider data aggregation & analytics More data fields 11

12 Functionality: Analytics Data aggregation and transparency. Enable clients access to all non-confidential bank data fields within reporting and analytical tools You can then construct the analytical tools which provide the most value to clients. Trend analysis Performance management Benchmarking What-if scenarios Action-prompted analytics 12

13 Functionality: What s Next in Analytics? Custom analytics are on the horizon. Some potential examples may include: Trend analysis tools to assess the credit deterioration of trading partners Performance management tools to track portfolio variance versus internal target Benchmarking tools to compare average discount terms to peers Action-prompted analytic tools which proactively notify the client that a trading partner s risk level has exceeded a pre-established threshold 13

14 Differentiate Value Across Web Platforms In addition to offering value-add tools, it is imperative that the bank clearly differentiate its banking platforms in order to optimize value. Establish distinct differences in functionality Marketing and client education Internal policies and systems controls Penalty pricing Bank policies that prohibit clients above a certain threshold from using the retail platform 14

15 Price for Value The bank should be compensated for the value that these tools / analytics provide. Clients are willing to pay for information and capabilities that are truly value-add. By providing clients with value through the web channel your bank will realize additional revenue from: Explicit and implicit fees Reduced attrition Acquisition of primary relationships Limited migration to the bank s retail platform 15

16 Establish Bank Analytics While analytics provide value to clients, there are also opportunities for banks to perform their own data-mining and analytics. Cross-sell opportunities (next-likely product, risk exposures, hedge opportunities, etc.) Possible client attrition Fraud identification Need for user support Elevated client risk levels Adherence to loan covenants 16

17 Benefits To your clients Improved efficiency Greater visibility Better information Better decision making Risk reduction To you More revenue Risk reduction Greater client retention Better decision making Improved efficiency Greater visibility Better information Improved branding / image 17

18 Conclusions and Actions Outside of a strong Sales force, the web channel represents one of the greatest opportunities for your bank to: Improve revenue Gain market share Elevate client satisfaction 18

19 Additional Questions Jacob Nygren, Manager Name Contact Information

20 Treasury Strategies Financial Services Practice We deliver strategic advice and pragmatic solutions that improve our client's bottom line performance. Our clients benefit from our unparalleled view of the treasury market, deep client relationships, and proprietary analytical frameworks that transform data into strategic insights. We work with the following entities: Global Banks Regional Banks Solution Providers Associations Regulators We provide unique solutions in the following areas: Business Strategy Revenue Enhancement Deposit & Sweep Pricing Sales Training & Effectiveness Product Opportunity & Gap Analysis Operational Efficiency Risk Management & Compliance Competitive Assessment & Positioning Vendor Selection & RFP Management Market Analysis 20

21 About Treasury Strategies, Inc. Who We Are Treasury Strategies, Inc. is the leading treasury consulting firm working with corporations and financial services providers. Our experience and thought leadership in treasury management, working capital management, liquidity and payments, combined with our comprehensive view of the market, rewards you with a unique perspective, unparalleled insights and actionable solutions. What We Do Corporations We help you maximize worldwide treasury performance and navigate regulatory and payment system changes through a focus on best practices, technology, liquidity and controls. Treasury Technology We provide guidance through every step of the technology process. Our expert approach will uncover opportunities to optimize the value of your treasury through fully integrated technology solutions. Financial Services Our experience, analytic approach and benchmarks provide unique consulting solutions to help you strengthen and grow your business. 21