case study of service transformation : leading indian bank

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Leading Indian Bank Transformation Project

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Page 1: Case Study of Service Transformation : Leading Indian Bank

Leading Indian Bank Transformation Project

Page 2: Case Study of Service Transformation : Leading Indian Bank

Mission : Zero Unhappiness

2

Page 3: Case Study of Service Transformation : Leading Indian Bank

3

All complaints to be resolved with root fix ComplaintsComplaints

Get it right first time. Call up a customer if

error is noticed Transactions Transactions

Ensure First ContactResolution ContactsContacts

Close SR Within TAT Good Closure Quality Service RequestsService Requests

Root Cause Analysis & Review

Reduce Service Failure Flow

Delivery FailureDelivery Failure

Mission

Page 4: Case Study of Service Transformation : Leading Indian Bank

4

Zero Unhappiness-Strategic Intent

Necessary step for the bank to be a service leader.

Leads to improved productivity & profit Generates a positive word of

mouth.Attracts new customers Provides a competitive advantage.

More difficult and slower for a competitor to respond to service improvement than to price change.

Help us retain customers. Cheaper to retain customers than to acquire

new ones

Page 5: Case Study of Service Transformation : Leading Indian Bank

5

Customers

Service Transformation - Scope of Project

Channels

Call Center

Branches

Account Manager

Email

ATM

Empowering &Strengthening

Channels

Chequebook not Received

EMI Not Banked

Cheque deposited Not Credited

NOC Matured

Central& Regional OperationTeams

RAOG CPCRPCRAPG

Service Failure Credit Card not received

Backend: RCA Led ProcessImprovements &

Management Control

Enablers:IT

Projects

Enabling IT Projects

& De-bottleneckin

g •Over 10 000 employees covered

Page 6: Case Study of Service Transformation : Leading Indian Bank

Transformation : Results

6

Page 7: Case Study of Service Transformation : Leading Indian Bank

7

Results- Service Failure Reduction

61702

50374 49326

38029

33946

23187

6031162455

7998873886

4012348163

0

20000

40000

60000

80000

Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05

Page 8: Case Study of Service Transformation : Leading Indian Bank

8

4307529

9037555

14793313

21799520

29187237

37593205

Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05

Results- Cost Saving Through Failure Reduction

Page 9: Case Study of Service Transformation : Leading Indian Bank

9

Results- Deposits Service Failures

18284

16892

14638

11851

10702

9339

18968

2075922562

23806

11844

14804

0

5000

10000

15000

20000

25000

Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05

Page 10: Case Study of Service Transformation : Leading Indian Bank

10

Results- Credit Card Service Failures

27022

18725

20222

1436813865

10368

2116521644

2902429730

18403

18121

0

5000

10000

15000

20000

25000

30000

Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05

Page 11: Case Study of Service Transformation : Leading Indian Bank

11

Results - Home Loan Service Failures

1000510345

9806

6351

5354

1772

1264612344

19302

10019

5601

9101

0

5000

10000

15000

20000

Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05

Page 12: Case Study of Service Transformation : Leading Indian Bank

12

Results- Consumer Loan Service Failures

4497

3926

4239

5094

3822

1479

5523

57446080

6744

3816

4492

0

1000

2000

3000

4000

5000

6000

7000

Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05

Page 13: Case Study of Service Transformation : Leading Indian Bank

13

Results - Service Failures as % of Transactions

47211

629267162476392

102705108124

8480585096

86549

79463 8041055161

0.09%

0.17%

0.26%0.27%

0.20% 0.20% 0.21% 0.18% 0.17%

0.11%0.12%0.15%

0

20000

40000

60000

80000

100000

120000

Apr-04 May-04

Jun-04 Jul-04 Aug-04

Sep-04

Oct-04 Nov-04

Dec-04

Jan-05 Feb-05

Mar-05

Months

# o

f C

riti

ca

l Re

qu

es

ts

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

% a

ge

to

To

tal T

ran

sa

cti

on

s

# of Critical Requests % Age to Total Transactions (RHS)

Page 14: Case Study of Service Transformation : Leading Indian Bank

14

Results – Quality of Request Handling

55%

62% 62% 64% 64%68% 69%

72%68%

77%

88% 87%

30%

50%

70%

90%

Apr-04

May-04

J un-04

J ul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04

J an-05

Feb-05

Mar-05

Page 15: Case Study of Service Transformation : Leading Indian Bank

15

Results-Customer Feedback Scores

74%

78%80%

64%

70%

85%88% 87%

63%

67%

75%

83%

56%

62%

77%

82%80% 80%

80% 81%

72%76%

55%

65%

75%

85%

Q-I '04 Q-II '04 Q-III '04 J an'05 Feb'05 Mar'05

Phone banking Liability BranchesAsset Branches- Home Loan Asset Branches- Consumer Loan

Page 16: Case Study of Service Transformation : Leading Indian Bank

16

5411

97629354

7712

50624468 4500

5311

2681 2863 2744

11786

0

2000

4000

6000

8000

10000

12000

Apr-04 May-04 J un-04 J ul'04 Aug'04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05

Results:Written Complaints to Bank

Page 17: Case Study of Service Transformation : Leading Indian Bank

18

Service Pyramid- Deposits

Customer Base

Transactions

Service Failures

Service Requests

Contacts

Complaints

April 2004

143

23,806

127,314

8,517,004

33,570,703

6,323,798

Mar 2005

109

9,339

141,102

10,475,085

29,023,306

7,548,780

Up/ Drop

24% DROP

61% DROP

11% UP

26% UP

13% DROP

19% UP

Page 18: Case Study of Service Transformation : Leading Indian Bank

19

Service Pyramid- Credit Card

Customer Base

Transactions

Service Failures

Service Requests

Contacts

Complaints

April 2004

4,987

29,730

54,455

614,985

6,626,758

2,151,982

Mar 2005

2,704

10,368

104,346

905,739

9,297,300

3,079,637

Up/ Drop

46% DROP

65% DROP

92% UP

47% UP

40% UP

43% UP

Page 19: Case Study of Service Transformation : Leading Indian Bank

20

Service Pyramid-Consumer Loans

Customer Base

Transactions

Service Failure

Service Requests

Contacts

Complaints

April 2004

180

6,744

50,488

106,881

1,690,064

1,277,860

Mar 2005

32

1,479

38,969

201,703

2,074,022

2,026,242

Up/ Drop

82% DROP

78 % DROP

23% DROP

89% UP

23%UP

59% UP

Page 20: Case Study of Service Transformation : Leading Indian Bank

21

Service Pyramid-Home Loans

Customer Base

Transactions

Service Failure

Service Requests

Contacts

Complaints

April 2004

28

10,019

22,421

56,970

1,338,367

505,000

Mar 2005

15

1,772

33,378

160,008

1,072,098

623,417

Up/ Drop

46% DROP

82%DROP

49% UP

181% UP

20% DROP

23% UP

Page 21: Case Study of Service Transformation : Leading Indian Bank

Transformation Methodology

22

Page 22: Case Study of Service Transformation : Leading Indian Bank

23

Transformation Process

Root Cause Analysis &

Improvement Plan

Fulfilling Wish List & Challenging Possibilities

Budgeting & Stretch Targets

Strengthening &

Empowering Front End

Continuous Review &

Management Control Systems

Page 23: Case Study of Service Transformation : Leading Indian Bank

24

Transformation Control System

Budget for Key Metrics for Mar 05

Daily Measurement of Metrics:Alarm

Express

Daily Review & Course Correction

Weekly comparison of

Budget vs. Actual

Root Cause Analysis

Fortnightly Review

Zero Unhappiness Scorecard & RCA

Improvement Implementation

Plan

Senior Management

Junior &Middle Management

Planning ControlAnalysis & Review

Focus on Short Interval Measurement, Analysis &Review

Page 24: Case Study of Service Transformation : Leading Indian Bank

25

0

10

20

30

40

50

60

70

80

90

100

13 14 15 16 17 18 19 20 21 22 23 24 25 26

Date

Nos

Base 2 Week Moving Average3 day Moving Average

Dashboard: Daily Alarm Express

Concept of alarm express was devised to promote daily measurement & control of performance Analyzing information- attaching meaning to indicators, setting it into context, recognizing

crisis development

Page 25: Case Study of Service Transformation : Leading Indian Bank

26

Transformation Measurement : Zero Unhappiness Scorecard-Sample

Top Branch CRs# Feb

Budget Feb Actual

Variance J an '05 Dec '04 Nov '04

Ikit not activated 125 50 75 169 245 422

Instruction for A/c closure not executed 120 80 40 242 139 182

Cash Deposited At Branch Not Credited 90 86 4 121 209 188

Address change not done 140 137 3 183 187 189

Transfer Of Accounts related issues 65 55 10 88 169 168

A/c Not Opened 20 4 16 37 131 101

Outstation collection - Dispute in Amt 20 2 18 50 64 66

FD Renewal not done - deposits 10 9 1 8 32 23

TDS Amount Deducted Disputed 5 5 0 11 13 10

Fixed deposit not linked to account 5 0 5 6 10 6

Form 15 H Not Entered 0 0 0 0 0 1

Cash Deposit In Atm Not Crdited 12 4 8 21 35 56

Fixed Deposit Interest Chq Not Received 2 0 2 3 3 8

Local Outwrd chq returned physical chq not recd 5 3 2 11 17 24

TOTAL 619 435 950 1254 1444

Total Quality Budget Feb 1-15Variance J an Dec Nov

Quality -North 90% 90% 0% 45% 55% 58%

Quality -East 90% 83% -7% 69% 58% 70%

Quality -West 90% 95% 5% 65% 59% 59%

Quality -South 90% 79% -11% 60% 58% 58%

Overall Branch Banking 90% 87% -3% 60% 58% 61%

Total TAT Budget Feb 1-15Variance J an

Total CR beyond 24 hours 0 51 -51 82

Zero Unhappiness Scorecard -Deposits - Branches

Sample Scorecard Scorecard presented &

reviewed in fortnightly reviews

All variances are linked to RCA

Comparison of Monthly Performance Vs. Budget

Focus on Top Service Failures

Key Indicators Focused On : Number of Service Failures, Quality, Service Request Closed within TAT

Page 26: Case Study of Service Transformation : Leading Indian Bank

27

Transformation : Product Wise Cases

Root Cause Analysis &

Improvement Plan

Fulfilling Wish List & Challenging Possibilities

Budgeting & Stretch Targets

Strengthening &

Empowering Front End

Continuous Review &

Management Control Systems

Deposits-Central Ops

RCA

Credit Card OpsRCA

Asset Loans OpsRCA

Deposits BranchesInitiatives

Phone Banking Initiatives

Page 27: Case Study of Service Transformation : Leading Indian Bank

Caselet Deposits: Deliverables Not Received

28

Page 28: Case Study of Service Transformation : Leading Indian Bank

29

Deposits : Deliverables Not Received

Apart from wrong creation, dispatch/delivery related issues needed focus

Back

Page 29: Case Study of Service Transformation : Leading Indian Bank

30

•Issue: RTO returns would sit at the branches, waiting for customer to collect them •Solution: Outbound Calling

•Every deliverable cleared resulted in a happy customer, lesser rework & cost savings•Average Contact Ratio:65%

Data :Nov04-Feb 05

Deposits : Deliverables Not Received

Back

Page 30: Case Study of Service Transformation : Leading Indian Bank

31

Deposits : Deliverables Not Received Issue :E-search Update

E-search information for certain deliverables not updated/ available resulting in inadequate /incomplete information to customers & Service Request creation errors

Initiative :E-Search Update (CTD Initiative) Identified mandatory uploads for First Contact

Resolution related to RPC/ CPC processes Designed and finalized the file formats for all mandatory

uploads - easy reading for front end National Co-ordinator appointed to tracking e-search

open cases and timely uploads I-KIT AOF Rejections,Modification Request

Rejections,Nomination Rejection Letters Nomination Registration Request Rejections,Non I-Kit SB/FD-RD AOF Rejections,Transfer of Account- Rejections,Transfer Cheque Returns, ATM Retained Cards,TDS - Form 15G Rejections etc.

Back

Page 31: Case Study of Service Transformation : Leading Indian Bank

32

0

1000

2000

3000

4000

5000

6000

7000

Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05Est.

ATM/Debit Card PIN Chequebook 6350

1639

Deposits : Deliverables Not Received

Back

Page 32: Case Study of Service Transformation : Leading Indian Bank

Caselet Deposits:Cheque Deposited Not Credited

33

Page 33: Case Study of Service Transformation : Leading Indian Bank

34

Deposits: Cheque Deposited Not Credited Cheque rejected / returned cases

New product line in esearch for uploading reject cheques

Strengthening of front end checks . Fortnightly audit by CTD

Outbound calling at branches for all final returns Amount parked in Insufficient details

account/collection account Pay-in slips with mobile numbers introduced

Selective Outbound Calling at RPCs to facilitate repair

Front End Service request creation Errors Training given to front end to ensure proper SR type

selection CTD shared the SR audit findings with front end on

fortnightly basis

Back

Page 34: Case Study of Service Transformation : Leading Indian Bank

35

8897

76697469

6832

5911

4474 4434

3724

3051

19401615

2145

1000

3000

5000

7000

9000

Apr-04 May-04 J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05Est.

Deposits: Cheque Deposited Not Credited

Back

Page 35: Case Study of Service Transformation : Leading Indian Bank

Caselet Credit Card:Card Not Received

36

Page 36: Case Study of Service Transformation : Leading Indian Bank

37

Credit Card:Card Not Received

High Returns :New Card Delivery ProcessMultiple courier dispatch initiated for all

citiesASHI update started for all legs of the RTO

process Embossing Delays/Backlog

Embossing / Dispatch tracker initiated with vendor-wise, daily tracking

Development of additional vendors to reduce dependency

All embossing backlogs with Vendors cleared

Back

Page 37: Case Study of Service Transformation : Leading Indian Bank

38

Credit Card:Card Not Received

25232412

1423 14371320

1474

1108

3552

4671

1902

1529

794

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Back

Page 38: Case Study of Service Transformation : Leading Indian Bank

Caselet Credit Card:Cheque/Cash Not Credited

39

Page 39: Case Study of Service Transformation : Leading Indian Bank

40

Credit Card: Cheque/Cash Deposited Not Credited Customer dropped cheque in CITIBANK

ATMs Separate tracking process in TIPS for

cheques dropped in CITIBANK drop boxes.Outbound calling, Letters to these

customersASHI updation done for these cases

Reduce Service Request Creation errors at Phone Banking

TIPS Access to all PBO’s at Call CenterRejection process made online

Back

Page 40: Case Study of Service Transformation : Leading Indian Bank

41

Credit Card: Cheque/Cash Deposited Not Service Credited

1707

2231

13911434

1178

1068

944 936

807

583

363265

0

500

1000

1500

2000

2500

April May J une J uly August September October November December J anuary February March

Back

Page 41: Case Study of Service Transformation : Leading Indian Bank

Asset Loans Caselets

42

Page 42: Case Study of Service Transformation : Leading Indian Bank

43

Asset Loans:Refunds

Service Failures reduced from 4855 (April’04) to 1101 (Mar ‘05)

Steps for Service Failure Reduction Proactive Refund Initiated

Emi banked after foreclosure Excess foreclosure amount collected

Project 28-PDC factory locking date change from 18th to 28th of the month.

Direct credit of refund amount to Customer bank account.

SMS alert to customer informing dispatch details after closure of SR.

Monthly Reconciliation of Pre-Emi/Emi due and Banking for refund of excess Pre-Emi/Emi

Back

Page 43: Case Study of Service Transformation : Leading Indian Bank

44

Asset Loans- EMI Banking

Service Failures reduced from 2212 in April’2004 to 436 in March’2005.

Steps for Service Failure Reduction: All banking done Centralized and through

System – discontinuation of manual processes Non-cycle date banking discontinued – banking

only on pre-specified dates of 1, 7, 15, 22 EMI Dues vs Banking reconciliation completed

prior to EMI Due dates – customers made aware in case of non-banking by tele calling.

Back

Page 44: Case Study of Service Transformation : Leading Indian Bank

45

Asset Loans – NOCs for Matured loans Service Failures reduced from 2656 in

April’2004 to 330 in March’2005. Steps for Service Failure Reduction:

Dispatch of NOCs scheduled as per Cycle date and repayment mode – NOCs dispatched on clearance of final EMI

Loans closed in system before dispatch of NOCs

Charges to the customer after a specified date

Intimation letter sent to customer where RC no is not updated

Back

Page 45: Case Study of Service Transformation : Leading Indian Bank

Phone Banking Caselets

46

Page 46: Case Study of Service Transformation : Leading Indian Bank

47

Phone Banking Initiatives-Quality Training conducted on the processes for top

Service Failure's Internal SR audit team set up to monitor 100%

of Service Failure captured at Phonebanking Daily audit reports for feedback/refresher training

Daily healthy debate between Operations & Phone Banking teams on Service Creation errors

Checklist in Service CRM updated to ensure all information is captured

SR Service creation error put as as negative scoring for all performance metrics

Back

Page 47: Case Study of Service Transformation : Leading Indian Bank

48

Phone Banking Initiatives-Quality

78% 78% 77%

88%

83% 84% 85%

90%87%

92%95%

97%

Apr-04 May-04

J un-04 J ul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 J an-05 Feb-05 Mar-05Back

Page 48: Case Study of Service Transformation : Leading Indian Bank

49

Phone Banking Initiatives-IVR UsageTechnical & Marketing Migration from CRN/TPIN

to Card no. and APIN All Menu options

available on Punch Fast Path Access to

various Menu Options Channel migration and

call mandating by PBO Promotion of Self

Banking on ATM screen saver , SMS , Pin Mailers

System recognition of difference between no input and incorrect input

Functionality added Internet Banking

userid / Last Payment details under transactions

Loan on Phone with authentication

Dedicated Options: Debit Card queries

Preferred Card Activation option introduced

Back

Page 49: Case Study of Service Transformation : Leading Indian Bank

50

Phone Banking Initiatives- IVR Usage

24%

20%22% 22%

25%

34%37%

40% 41%43%

48%50%

36%

29% 30%

36% 36%

47%

52%55% 55%

59%

65%68%

0%

10%

20%

30%

40%

50%

60%

70%

80%

April

May

J une

J uly

Augus

t

Sept

embe

r

Oct

ober

Novem

ber

Decem

ber

J anu

ary

Febr

uary

Mar

ch E

st.

Authentication Trasactions (over total calls)

Back

Page 50: Case Study of Service Transformation : Leading Indian Bank

Branch Banking Caselets

51

Page 51: Case Study of Service Transformation : Leading Indian Bank

52

Branches Initiatives : Service Failures/Cust IDs Alarm Express : Daily RCA sent to branches

Service Failure-wise, branch-wise, reason-wise,RMBB-wise

Short Interval Control of RMBBs Daily contacts by JGMs

Getting it right first time Two issues : Delay, Standard Checks not done

Catch the mistake before the customer does Call customer (outbound calling) and resolve

If can’t resolve in 24 hours Escalate and inform customer

Back

Page 52: Case Study of Service Transformation : Leading Indian Bank

53

Branches Initiatives :Service Failures/ Customer IDs

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

1.3

.07

Back

Page 53: Case Study of Service Transformation : Leading Indian Bank

54

Branch Initiatives :Quality

Initiatives at Branches Branch-wise Focus

Focus shifted from Zone-wise quality to Branch-wise quality

Short Interval Control From monthly review to weekly review of overall

quality Training of Branches conducted by Centralized

Operations Team E-search Updation project co-ordinated by CTD

Reduced wrong capture/duplicate capture

Back

Page 54: Case Study of Service Transformation : Leading Indian Bank

55

Branch Initiatives- Quality

54

59

51

58

5350

59 58 60

65

83

90

0

10

20

30

40

50

60

70

80

90

100

Apr May J un J ul Aug Sep Oct Nov Dec J an Feb Mar

Back

Page 55: Case Study of Service Transformation : Leading Indian Bank

Thank You

56