Thinking About Customer Experience…

1

What role will customer experience play in your company’s competitiveness

over the next three years?

The vast majority of banks across all geographic and market segments

confirmed this as a primary focus

• What impact will e-channels have on your customer’s experience with your bank?

• How will you insure the same level of “touch” with your customers via e-channels that you provide them in the branch today?

• How will you leverage every customer contact with your bank?

• How will you close opportunities you generate from your e-channels?

What Are the Analysts Saying?

2

Brett King, Consultant, Author of BANK 2.0 and founder of the International Academy of Financial

“If banks honestly supported the internet as a sales channel, measured existing sales with better granularity as to where the revenue actually came from and used customer behavior as a leading indicator of where the money should be spent, our online and mobile banking experience would be far better than it is. “

“….At the very least, they will have to change form and function. As banks realize that behavioral shift can not be arrested and real revenue is suffering due to lack of support, we will start to see a land grab for better positioning of product online, through mobile, other direct channels, utilizing social media, third-parties and partners. This means straight-through-processing, automated credit risk assessments and better offer management through electronic channels will become absolutely critical.”

What Are the Analysts Saying?

3

Forrester Research – Banks Prepare for Customer Service Wars

“…banking executives shows that banks view customer experience as being critical and are increasingly focused on organic growth. What does this mean? The stage is being set for a battle in which banks will become more responsive to the changing needs of consumers — and fight to participate in a larger share of their financial activities. To succeed in this environment, banks need to chart a path toward Experience-Based Differentiation (EBD), an enterprise wide effort that focuses on three principles: obsess about customer needs; reinforce brands with every interaction; and treat customer experience as a competence, not a function.”

Recognize a problem with remote interactions. While 74% of bank execs think that they regularly meet the needs of customers when delivering service in the branch, their view of most other interactions fell well below that mark. Less than one-third of the respondents gave their online sales or service interactions that same vote of confidence. Across all three channels, service interactions were rated higher than sales interactions.

What Are Your Customers Saying?

4

I expect the bank to know me well,

about me, my history & my

business

I understand my value to the bank and I expect you to know

and recognise this

I want everyone in the bank to know,

irrespective of the point of contact

I don’t want to queue or wait too long for

simple transactions. I want the option of doing things myself

I expect the bank to be consistent, reliable and

trustworthy

I want to be confident that the bank staff

know their products and services

When there is a problem, I want the bank to deal with it

seriously and someone to keep me posted on

the progress

I don’t want to fill in forms – especially when

I have filled them in before

I expect the bank to contact me in an

appropriate manner to ensure all my financial services needs are met

I expect the bank to be neat and tidy when I go

to a branch

Real Comments taken from Real Customers for a FIS Client

Definition of Multi-Channel Sales and Service

5

Past Present Future

Past: Only branch channel• Bank customers: branch people knows their customers well• Customer bank: contact only branch channel, and they know me.

Present: More channels, more customer segments, more complicated technology• Bank customers: branch channel knows their customer but if customer contact other channels, I don’t know if you

contact other persons or channel. Please tell me again.• Customer bank: I have to contact the same person I contact to know my request, Bank does not know me.

Future: More channels, clear customer segments, more customer & channel management, more complicated technology

• Bank I need to know customer at any customer touch points.• Customer bank: I expect bank to know about me, less forms and more convenient

A key decision criteria for a customer when it comes to buying additional products and services from the bank is how well the bank services them today….

Customer Experience

How you Interact

How you Service

What You Know

How You Use What You

Know

To effectively support a robust customer experience, the bank needs to “know” their customers. Customer information is owned by the business and supported by IT systems. This means:

• Accurate customer information• Comprehensive customer

information• Systematically knowing all of the

customers account relationships with the bank

• Knowing all of the customer relationships within the bank

• Systematically keeping customer data synchronized across the IT systems

Every solution decision (buy or build) to solve a business problem, is made in the context of how it supports the overall customer experience

Customer LoansDeposits Cards Insurance

Data Warehouse AnalyticsBusiness Intelligence Campaign Generation Others

Whe

re I

Inte

ract

and

Se

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eW

hat I

Kn

owH

ow I

Use

W

hat I

Kn

ow

ATM Branch Call Center Internet Mobile Kiosks

CollectionsEmail Statements Outside Sales Tele Marketing Point of Sale

Campaign Execution Customer Alerts Customer Contact Cross-Sell AML /Fraud Detection

Others

How

I In

tera

ct

Key to maximizing the customer interactions is learning about your customer from what you already know about your customer.....

Business Impact• Customer Experience is key to

making changes; Some banks are now creating an executive position for managing the customer experience;

• Optimizing processes will span organizational boundaries;

• Benefits must be viewed holistically;

• Customer and Account data accuracy is critical; data integrity is the responsibility of the business, supported by IT. Ownership of data belongs to the business;

• Bank policies continue to undergo review and changed to provide greater flexibility to the customer, while maintaining regulatory compliance.

Technology Impact• Interoperability is now as important

in solution selection as functionality;

• Adherence to standards becomes more important;

• Structured architecture across the enterprise is critical (not just integration);

• IT must make decisions that minimize data replication;

• A clear view of IT’s application and architecture strategy is critical to form the basis for making future technology decisions;

• “Customization” going forward should more closely resemble “configuration” types of activities; not just writing custom code

Adopting a business strategy of integrated multi-channel sales and service has impact to the business and IT…