financial services achieving agility and efficiency in challenging conditions

financial services achieving agility and efficiency in challenging conditions

a tightening regulatory environment, more demanding consumers, legacy technology platforms and a changing competitive landscape continue to make financial services a challenging industry to succeed in.

turbulent times look set to continue The financial services industry is experiencing significant change, and with the landscape changing dramatically some key trends point to where the industry focus needs to be. Your future in their hands: the rise of the super-consumer Consumer power has changed, permanently. Today s financial shoppers can access the entire market to search and select the financial products and services they need all from their desktop, frequently with no personal interaction with the providers. They also leverage social networks to get unregulated opinion: positive and negative steering their buying decisions. Not only this, but they want from you to be personalised for them. They then respond in kind amplifying their opinions of the service you provide and the reputation that your brand projects. the growing need for transparency Regulators and financial institutions alike face equal pressure to show good governance and responsible practice. This trend will continue, with Basel III placing significant demands on organisations to maintain liquidity levels and just as important, report on them with regularity and accuracy. This environment is impacting the way banking, insurance and credit and loan companies communicate with their customers, placing additional information provision requirements on providers, regardless of the communication channels employed. taking cost and latency out of the system Competition in the financial services industry is not new, but has certainly increased as a result of the global credit crisis. New market entrants have seized the opportunity including online and supermarket players. These new entrants often bring with them a speed to market and efficient cost base that can easily wrongfoot existing players. The challenge is how to re-engineer the organisation to be leaner and more agile. crossing the technology chasm Many financial organisations face a challenging array of legacy systems and information silos. With liquidity and profit pressure, how can providers invest in the infrastructure they need, while avoiding high capital expenditure? Consumers are demanding continuous improvements today s internet generation want an integrated response and communication on their terms through channels of their choice. 4 5

To Your CusTomers The future for financial services organisations lies in their ability to successfully reduce cost, innovate and get to market faster. rise to the challenge turn your customers into your best assets At the heart of this sits the relationship with the customer, which requires a complete rethink of the way financial services organisations communicate with them. RR Donnelley works with many of the world s leading financial services organisations to help them make their customer add value and revenue, rather than being just operational processes that consume cost. closing the loop We leverage our integrated communication platform to help financial services providers close the loop between outbound and inbound customer interactions. This approach builds a much more cohesive picture of the customer, helping clients to improve services and generate savings. A simple example is linking transactional documents to inbound correspondence through the use of 2D barcodes if application forms and statements are returned the barcode prevents the need to capture information again, saving time and money. optimising multi-channel There s no uniform way to interact with customers they re all different and want providers to operate on their terms. We help organisations manage their customer interactions in whatever channels and formats the individual customer prefers: print, online, mobile and emerging social media platforms. insight and analysis Banks and insurers have access to more customer information than in any other industry, but still many organisations do not maximise the value of this information to make sense of customer activity. Our experience in data analytics helps our clients use this customer information as a source of competitive advantage from delivering a highly personalised experience through to informing innovative new product development. transforming transactional Consumers on average spend between 60 and 180 seconds reviewing a statement, and just 15 seconds reviewing a direct mail piece. We help organisations take advantage of the latest transpromo technology, adding targeted and personalised messages, to use regular statements as value adding and personalised marketing opportunities. 6 7

areas of spend typical breakdown of spend rr donnelley typical savings Marketing 30% 25% Creative services 10% 15% Transactional 15% 15% Applications processing 10% 20% Correspondence processing 10% 20% Payment processing 10% 20% Office 5% 30% Legal support services 2% 20% Research and analysis 2% 25% Information mgt. and analytics 6% 15% total 100% OUTPUT 15% the true cost of your The your business provides, from advertising to statements, are the outputs that your current and potential customers see. Only 15% of the costs in the customer process comes from producing and sending these out, meaning that 85% is spent on a wide range of processes encompassing the complete lifecycle of an item of communication. PROCESS Marketing Creative services Transactional Applications processing Correspondence processing Payment processing Office Legal support services Research and analysis Information management and analytics 85% we enable savings in the process With enterprise-level firms today spending an average of 1 3% of their total revenue on customer communication processes, savings of 25% gained from outsourcing to RR Donnelley gives a substantial reduction in costs. continuing to save throughout the journey Our process transformation, through driving economies of scale to delivering multi-channel adoption, drives down costs as you move from your current operating model to a communication model that suits you and your customers (see table above for examples of typical RR Donnelley savings). the cost iceberg What you see is not What really costs you 8 9

The enterprise CommuniCaTions management model (ecom ) PROCESSES BUSINESS RESEARCH AND ANALYTICS LEGAL SUPPORT SERVICES OFFICE YOUR ORGANISATION CREATIVE SERVICES OUTBOUND MARKETING TRANSACTIONAL INFORMATION AND ANALYTICS INBOUND YOUR CUSTOMERS PAYMENT CORRESPONDENCE APPLICATIONS solutions to support your business RR Donnelley offers a range of managed services across the lifecycle of customer communication and business processes. ecom delivering a closed-loop approach With organisations trying to optimise their operations, a key task is to achieve integration across previously standalone communication and business processes. This is essential to discover the true cost of an organisation s processes, and then to identify the key changes required to deliver significant cost reduction and performance improvement. RR Donnelley s Enterprise Communications Management (ECoM) model helps organisations integrate the way they manage many disparate processes, connecting these operations to create more coherence and efficiency. By closing the loop, organisations can maximise the value of outbound, inbound and back office services, turning costly processes into business assets. read on For service descriptions 10 11

INFORMATION LEGAL SUPPORT SERVICES RESEARCH & ANALYTICS YOUR ORGANISATION OFFICE MARKETING & CREATIVE SERVICES PAYMENT PRINT CORRESPONDENCE TRANSACTIONAL APPLICATIONS INFORMATION LEGAL SUPPORT SERVICES RESEARCH & ANALYTICS OFFICE MARKETING & CREATIVE SERVICES PAYMENT PRINT CORRESPONDENCE TRANSACTIONAL APPLICATIONS INFORMATION LEGAL SUPPORT SERVICES RESEARCH & ANALYTICS OFFICE MARKETING & CREATIVE SERVICES PAYMENT PRINT CORRESPONDENCE TRANSACTIONAL APPLICATIONS OUTBOUND BUSINESS PROCESSES YOUR ORGANISATION INBOUND YOUR CUSTOMERS OUTBOUND BUSINESS PROCESSES YOUR ORGANISATION INBOUND YOUR CUSTOMERS OUTBOUND BUSINESS PROCESSES INBOUND YOUR CUSTOMERS outbound inbound business processes all services our solutions explained creative services For clients passionate about creativity we provide award-winning creative design, pre-media and presentation services. We have over 100 designers in our own studios and on clients sites throughout the UK and Ireland. Our clients can also access a network of over 1,000 designers across the globe. marketing We help clients create and deliver effective marketing with a unique blend of multi-channel campaign management, innovative direct marketing, and intelligent sourcing, warehousing, fulfilment and distribution services. We also provide access to over 1,000 translators to serve multi-lingual campaigns. transactional RR Donnelley helps organisations turn transactional from a cost into an opportunity to cross-sell, build relationships and interact more effectively with customers. We provide information design, composition, transpromo, production, postal optimisation and delivery solutions. payment processing Payment processing can be costly and time-consuming, but nonetheless it s critical to business performance. We help improve the quality and cost of operations, ensuring payments are effectively managed. correspondence processing Consumers are demanding ever higher service levels and it s often errors or delays in basic correspondence handling that creates customer dissatisfaction. Our correspondence processing solution, delivered through an intelligent blend of onshore and offshore resources, meets our clients requirements in terms of cost, flexibility, responsiveness and risk. applications processing We maximise operational efficiency and provide a more responsive and rewarding experience to your customers through whatever channel they choose. We achieve this by leveraging our industry-leading processing centres in the UK, in mainland Europe and offshore in Asia. legal support services We reduce both the cost and cycle time of a wide range of legal support processes, such as document life-cycle management; contract drafting and review; transaction support, including due diligence and document review; disclosure services, including litigation document review and coding; and data processing, hosting and abstraction. Our global footprint provides access to a large talent pool and a 24/7 operating platform that can scale quickly to provide capacity during periods of peak demand. research and analytics Established to help organisations make more informed decisions, our research and analytics service is delivered by a team of more than 400 skilled researchers providing bespoke research to clients in business information, strategic market research and financial analytics. office Office management is a flexible, managed print platform that optimises an organisation s enterprise-wide document production. This includes printers, copiers, scanners, fax machines, and multi-function devices. information management and analytics Dealing effectively with increasing volumes and complexity of information is a key challenge for many organisations. We help our clients manage and analyse a wide range of customer and operational data turning it into a source of insight and value. 12 13

an approach tailored to Your business Our consultancy-led approach recognises that every business has its own unique challenges and requirements. As such, we work closely with organisations to design a strategy to match your specific business objectives. This allows us to identify the journey that will best meet your needs and will deliver the desired functionality and capability required by your business. We will then seamlessly transition responsibility for your service delivery to RR Donnelley at a pace that suits you. We work closely with clients to facilitate the smooth transfer of a managed service to RR Donnelley. With our own dedicated migration team, following Prince 2 methodology, we have a proven track record in largescale migrations of people, process and technology. TUPEing staff across. Mitigating the risks. Maximising the benefits. Ensuring business continuity throughout. a stepped approach delivering continuous value and cost savings The transformation journey sets out how we can take clients on a series of controlled and carefully planned steps to a future model delivering savings and adding value at each stage of the programme. In this way we have a proven track record of transforming and joining up outbound and inbound processes across enterprises. example stages for a transformation programme There are a wide range of stages, all purpose-designed around individual business needs. Productivity increase: reduce the number of people required to undertake a process by process reengineering and automation. Economies of scale: by outsourcing print procurement to RR Donnelley our clients can benefit from using our platform and achieving lower costs. Labour rate arbitrage: moving work to a nearshore or offshore location where employee costs are lower. Linking : closing the loop of outbound and inbound communication operations leads to efficiency savings. For instance, a simple example is linking transactional documents to inbound correspondence through the use of 2D barcodes, preventing the need to capture information again and saving time and money. Multi-channel adoption: we can also help clients to use a wide variety of off and online channels to improve the efficiency and effectiveness of. the transformation journey Moving from an existing operating model to a future state involves taking a series of controlled steps. This transformation journey often delivers savings of as much as 25% each step bringing about greater efficiency and effectiveness. cost Current operating costs inbound outbound Increase productivity Economies of scale Labour rate arbitrage process transformation Link across inbound and outbound Multi-channel adoption current model future model 14 15

CUSTOMERS SERVED FROM Why rr donnelley? We go above and beyond to help deliver success for our clients. Innovation and a relentless commitment to continuous improvement come as standard. our financial services clients Barclays Barclaycard Bupa HSBC Prudential UK Willis Zurich we know the industry RR Donnelley has decades of experience in supporting the financial services industry. We work with many of the world s leading financial institutions, helping them reduce costs and risks across their operations. Our global resourcing platform, blendshore, provides organisations with a flexible, cost-effective resource for managing some of the critical, labour-intensive processes that financial services organisations are under pressure to streamline. Our consultants have backgrounds in the financial sector, so they have experience of the regulatory, data protection and commercial issues that financial services organisations uniquely face. driving innovation The financial services industry evolves at a faster and more dramatic pace than many others. RR Donnelley invests significant time and financial resource into R&D to ensure our services, technology and process management not just keeps up with the pace of change, but actually helps move our clients beyond where they are today. in for the journey RR Donnelley has been selected by many of the world s biggest and most innovative banks and insurers as their provider of choice. None of our clients took this decision lightly. In every case we develop a close business relationship sharing risk and reward. These relationships evolve and grows in line with the clients objectives. 16 17

RR Donnelley has developed a comprehensive solution portfolio for Zurich which incorporates design, print management, transactional management and translation services. This solution has helped us improve both the efficiency and effectiveness of our customer and we are encouraged by the benefits that have been delivered to date. kay martin, Chief Marketing Officer, Zurich General Insurance RR Donnelley continually demonstrates innovation and flexibility, and their team has supported us in implementing the Willis Cause around the world. thierry saada, Group Chief Marketing Officer, Willis Understanding and responding to our customers needs is at the heart of our business, and we believe that RR Donnelley will add significant value in enabling our to be even more effective and efficient in reflecting our deep commitment to our customers. tulsi naidu, Operations Director, Prudential UK & Europe. CASE STUDY CASE STUDY CASE STUDY ZuriCh Zurich Financial Services Group is a global insurance-based financial services provider. Founded in 1872, Zurich employs 60,000 people serving more than 170 countries. RR Donnelley was appointed in September 2003 to deliver significant cost savings and improve customer. Today, RR Donnelley provides a dedicated client team of professionals working across a range of creative, print, warehousing, transactional and translation services, primarily from Zurich s office in Swindon, as well as Farnborough and Ireland. Having now worked for Zurich for over eight years, we are more than ever focused on delivering added value and excellent services, including an onsite design studio where we create campaign material, posters, brochures, online interactive PDFs, web design and exhibition stands. Willis The Willis Group, one of the world s largest risk management firms, first approached RR Donnelley in 2001 to provide print management and reprographic services. In 2007 our relationship expanded to include onsite design and branding services to give Willis a flexible creative resource the structure of the team has adapted to the growth in digital design, media and online projects. The cutting edge service includes access to pre-media technology, digital asset management, soft-proofing and collaborative workflow. This enables end-users to manage content and collaborate with RR Donnelley in real-time to view, annotate and approve content online. For the first time, this also provides access to a central repository of marketing collateral, client reports and imagery accessed by over 300 associates across the globe. With the implementation of onsite and offshore resources, we have reduced production time, increased productivity and also played a key role in the Willis global rebrand launch. The contract was renewed in 2011, reflecting the long-term commitment to the business relationship. a leading FinanCial services provider Our client is a major, global financial services provider engaged in retail banking, credit cards, corporate and investment banking, wealth management and investment management services. With more than 300 years of history, the bank operates in more than 50 countries, employs over 145,000 people and has over 48 million customers. RR Donnelley has worked with the client since 1999, providing outbound transactional, and inbound mailroom and correspondence processing services. In an increasingly digital world, we use advanced scanning and archiving technology to digitise and automate increasing amounts of correspondence. We also operate one of Europe s largest electronic document archives with over five billion data items serving 4.5 million retrieval requests per month. As a key step in improving the customer experience, and with the help of RR Donnelley, in 2011 the client became the first bank in the UK to deliver full colour statements to its customers. 18 19

RR Donnelley is a leading provider of outsourced communication and business services. We work with many of the world s leading organisations to help transform the way they engage and interact with their customers. We are uniquely able to connect and manage complex communication processes for greater efficiency and impact. For our clients, this means they can reduce costs, improve efficiencies and achieve new levels of flexibility all achieved as a result of our experience, scale and insights gained from our work across the globe. Founded more than 147 years ago, RR Donnelley is a Fortune 250 company that employs over 58,000 people across over 600 locations. for further information Call: +44 (0)20 3047 4444 Email: marketinguk@rrd.com Visit: rrdonnelley.com/gds Carbon balanced paper, 50% recycled content and FSC certification. Ref: RRD/SC/FIN/02/0112. Copyright 2012 R.R. Donnelley & Sons Company. All rights reserved.