wqd2011 - innovation - mashreq bank - improving the on-boarding experience for retail customers
DESCRIPTION
Innovation case study submitted by Mashreq Bank during 3rd Continual Improvement & Innovation Symposium organized by Dubai Quality Group's Continual Improvement Subgroup to celebrate World Quality Day 2011.TRANSCRIPT
Innovation Storyboard
Mashreqbank
Improving the on-boarding experience for retail customers
Jul 2011 – on going
Lean Central Team
2 2
About Mashreq
Mashreq has provided banking and financial services to millions of customers and businesses since 1967.
We are one of UAE's leading financial institutions with a growing retail presence in the region including Egypt, Qatar, Kuwait and
Bahrain.
We focus on providing our customers access to a wide range of innovative products and services.
Mashreq is invariably among the highest performing banks in the region. Last year we recorded a Net Profit of AED 803 million
from a Total Operating Income of AED 4.4 billion over the same period. At the end of last year our Total Assets stood at AED
84.8 billion.
Our branch network extends across the UAE with one in every two households in the UAE banking with us. We also have
customer service centers in key retail locations and one of the largest ATM networks in the country. We also have 12 overseas
offices in nine countries, including Europe, US, Asia and Africa.
Introduction
Vision To provide our customers the most rewarding banking
relationships
Mission Being relationship based
Delivering superior service
Being the primary bank to our customers
Being the Employer of Choice
Values We are on a constant journey towards service
excellence, developing innovative new products and
financial solutions. Anticipating your needs and providing
you with new opportunities, convenience and peace of
mind, stem from our core beliefs.
Teamwork, cooperation and responsiveness drive the
way we work and form the basis of our core values
Customer focused We act in the interest of our customers, seeking to exceed their
expectations
Transparent and fair We are clear, concise and open in all our communications, and
treat customers and our colleagues with fairness, respect and trust
Progressive We are fast, agile and constantly think of ways to enhance
customer experience
Bold We challenge established practices and take smart risks
Individually Responsible We each take responsibility for the quality of our work, the success
of the bank and delivering the brand promise to each customer
2. The Idea
11
Diagnostic indicated improvement opportunities across 5 dimensions of the lean programme
SOURCE: Team analysis
Customer
Performance Management
Organization and Skills
Mindsetsand Behaviours
Process Efficiency
Key improvement opportunities
▪ Onsite account opening can be improved by ~60% without any further investment
▪ Opportunity to achieve all business turn around time targets
▪ KPIs tracked at different units are not aligned end to end
▪ No link between KPIs and overall bank performance
▪ Lack of scoreboards at any of the units, only dashboards reflect performance
▪ Lack of structured and regular huddles
▪ 6 units involved in the E2E onboarding process across 4 different groups
▪ Minimal involvement of back end units in the onboarding process in terms of FTEs
▪ Skills gaps required to be closed with coaching on the back of gap analysis to allow multi skilling and flexible resourcing
▪ Surveys reflect customer‟s overall satisfaction below target being cheque books and debit cards delivery one of the main causes of dissatisfaction
▪ The process to get fully onboarded involves 7 different touch points with the bank
▪ Main issues for staff:– Excessive
documentation– Insufficient transfer
of knowledge between frontline and back end units
– Units working independently
▪ Staff expect:– Collaborative work
environment– Sustainable changes– Simpler processes
for the customer
2. The Idea (contd.)
2
There is significant opportunity to improve onboarding processes
Process Time savings2, days
1 Personal banking branch1
2.0
4.5
56%
2 Manual accountSME branch1
2.0
6.0
67%
3 Manual accountGold center1 5.0
60%
2.0
With additional investment card printers and preprinted cheque books
times could be reduced furtherto ~20 minutes
Improvement opportunities
▪ Use quick account (with activation) for all onsite onboarding
▪ Standardize managerial approval and remove EDMS check
▪ Train front end staff in e-name check and risk matrix
▪ Document SLA for compliance response
▪ Trigger signature update process on scanned images
▪ Send AOF directly by the branch to Infofort rather than through CCAM
Current
Opportunity
1 On-site account opening
2 Full onboarding process, including active account and delivery of all security items and accesses
2. The Idea (contd.)
4
Overall satisfactionKey drivers tracked as part of onboarding for CASA customers
SOURCE: Transaction survey (Product quarterly report by Market probe), Jan ‟11 – Mar ‟11Personal banking - Current accounts opened at branches
Key insights
▪ Gaps to target persist, with significant improvement opportunities
▪ Receiving fully on-boarded account significantly below target
0
10
20
30
40
50
60
70
80
90
100
85%
Q1 ‟11Q4 ‟10Q3 ‟10Q2 ‟10
100%
Product featuresand services
0%
Time taken toopen the account
Ease of completingapplication formsand related document
50%
Providing productrelated information
85%
Bundled or valueadded service
Time taken to receivecheque books, etc.
Transaction survey indicates issues with cheque books and debit cards
VOICE OF THE CUSTOMER
2. The Idea (contd.)
5
213
17
27
35
7
38
4847
7272
8182
0
10
20
30
40
50
60
70
80
90
100
16 - 218 - 156 - 73 - 5< 2 > 3022 - 30
Late delivery of cheque books and debit cards reduce customer satisfaction
SOURCE: Transaction survey (Product quarterly report by Market probe), Jan ‟11 – Mar ‟11Personal banking - Current accounts opened at branches
VOICE OF THE CUSTOMER
Satisfaction
Incidence
Most significant drop of satisfaction level
after 2 weeks
days
Percent
After 6 days the courier company stops trying to deliver the package to CDC. The package is only
sent again if the customer contacts Mashreq
More than 50% of the packages are delivered after 5 days
666
Issues with cheque book and debit card also high in complaints log
VOICE OF THE CUSTOMER
Customer feedback
6
Gold General Banking
SME
CRM complaints log
CCAM Mail Box
“I am not interested in an
account number! I would like to have a
fully functional account which is in
line with the Mashreq Promise as part of my welcome
pack!”
Note: Totals presented for CRM data is a sample of 12 months – June 2010 to May 2011; CCAM Mail Box data is a sample of 3 months – April 2011 to May 2011
"Still do not have my cheque book
and no one knows where it is or who I
need to call?"
"What I was promised as part of my welcome pack
required continuous follow-up"
"My address / mobile details are still not updated?"
0
20
40
60
80
100
120
Account not activated
Benefits not received
Cheque book not received/ not issued
Address not updated
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Account not activated
Cheque book not received/ not issued
Benefits not received
Address not updated
0
10
20
30
40
50
Account not activated
Cheque book not received/ not issued
Address not updated
Benefits not received
0
200
400
600
800
Com-plaints: signature not updated
Pending status
Com-plaints: CIS linkages
Activa-tion
Escala-tion inquiries
2. The Idea (contd.)
2. The Idea (contd.)
77
Customer journey to a new account involves 7 touch points with the bank
1 Actual delivery to customer P.O. box by Empost is not tracked2 Product quarterly report by Market probe Jan ‟11 – Mar ‟11, Current accountsSOURCE: Team analysis
Branch
DST
Cheque,DCCCourier1
MOL
WWW
Apply- TCC- Mobile
MOL
ReceiveTCCCourier2
Current total time: 4.5 - 7 days
Welcome call
Relation-ship call
VOICE OF THE CUSTOMER
PIN
Letterbox
TIN
DBC
Snooze
Snooze
Snooze
Fullyon
boarded
Snooze
20‟ - 1 day
31.3%
0.5-3 days 4 days
0.5-3 days
0.5-3 days
1.0% 37.7% 0.0%7.6%
17.4%
9.3%1
24.4%
Timeline
Reworks
N/AN/A
6% of customers receive cheque books and debit cards after 2 weeks or
more (e.g. 2% take more than 1 month) 2
Primarily due to account number / TIN being
incorrectly entered by the customer
2. The Idea (contd.)
9
Customer onboarding process
Card Ops
▪ DCC generation
▪ Pin print
▪ TCC print
CDC
▪ Delivery, dispatch, vendor management
Branch delivery centre
▪ Cheque book, DCC
Empost
▪ Pin delivery
DST - Payroll
DST - SME
Gold
SME branch
▪ A/C opening
WWW
▪ MOL access
▪ TCC access
MOL
▪ Mobile banking
DBC
▪ TIN
▪ Risk level (L3)
▪ Ename check
Compliance
7.3
Compliance
23.0
Data centre
Data centre
▪ Card issuance
▪ Cheque book issuance
Vendor – NPP
▪ Branch delivery
▪ Pin delivery to Empost
Mail centre
X
Mail centre▪ Manual account
▪ Quick account
CCAM
51.1
CCAM
48.9
▪ Aramex, Eurostar (DCC + cheque)
▪ Orange (TCC)
Courier
Courier
100
30.3
100
30.4
15.5
1.8
3.4
56.5
56.4
66.0
* Only for DST (SME and payroll > 9,000)1Three months RBG data (March – May 2011)
Branch
*
MOL
21.0
Vendor – Cupola
% of applications that go through each unit100% = 2,677 ø / month1
46.9
0.5
99.5
0.5
PROCESS EFFICIENCY
Touch points
3. Process
▪ On-site customer on-boarding reduced to 30 minutes with only one touch-point
▪ Off-site customer on-boarding reduced to next day for Gold and 3 days for SME and personal banking
▪ Solutions to achieve all business turn around time targets identified
▪ Welcome and relationship calls designed for improvement of customer experience and cross sell opportunities
1
E2E design executive summary
Design solutions
Customer
Performancemanagement
Organization and skills
Mindsets and behaviours
Process efficiency
▪ KPIs aligned across all units involved in the client on-boarding process
▪ KPIs linked to overall bank performance
▪ Performance scoreboards designed for CCAM
▪ Structured and regular huddles for CCAM
▪ As identified in the „Voice of customer‟ survey, design solutions focus on personalized cards, courier delivery of items instead of pick-up at branch, and bound cheque books instead of loose cheque leaves
▪ Skills gaps for CCAM staff identified and training plan being finalized to allow multi skilling and flexible resourcing
▪ Staff issues identified in focus group to be addressed though planned re- enforcement.
▪ Regular and structured surveys to ensure staff engagement and change acceptance
3. Process (contd.)
6SOURCE: Customer survey on account on-boarding experience from July 25th to July 31st run on 10 branches (103 customers)
VOICE OF THE CUSTOMER
Percent
Customer expectations on cheque book and debit card delivery
Majority of customers (59%) want cheque book and debit card delivered on same day
Customer expectations on receipt of MOL access, TIN, TCC
Key insights
▪ 83 % of the customers prefer personalized embossed debit cards over a ready to use card without a name
▪ Courier delivery was preferred over branch pick up by 63% of customers surveyed
▪ The survey indicates that 70% of the customers do not require loose cheque leaves while waiting for their cheque book
Percent
0%
5%
10%
15%
20%
25%
30%
35%
40%
Immediate Same day Next day 2nd day 3 days or more
0%
5%
10%
15%
20%
25%
30%
35%
40%
Immediate Same day Next day 2nd day 3 days or more
59% 68%
3. Process (contd.)
7
Design solutions address key issues identified in VoC analysis
Key issues Design solutions
▪ Quick account for all onsite customers with generation of account number and activation in ~ 30 minutes
▪ Consolidated form for multiple products and requirement customer information only once across products
▪ Difficulty in completing application forms and related documents
▪ Reduced front line up front rejections, ensuring quick completion of data entry by CCAM
▪ Address not updated
VOICE OF THE CUSTOMER
▪ Customer dissatisfaction with the time taken to open the account
▪ Account not activated
213
17
27
35
7
38
4847
7272
8182
0
10
20
30
40
50
60
70
80
90
100
16 - 218 - 156 - 73 - 5< 2 > 3022 - 30
▪ Enhanced delivery schedules for offsite customers (from 4 to 3 days) and instant cards and cheques for onsite customers
▪ More than 50% of the packages are delivered after 5 days
SOURCE: Customer questionnaire on on-boarding run in branches
days
Percent
3. Process (contd.) Installing card printers in all branches cost AED 4m, but there are less costly alternatives
Options
Card
Cheque
▪ Print embossed chip cards in all branches
▪ Print embossed chip cards in 50% of branches covering 80% of account openings
▪ Print embossed magnetic stripe cards in all branches
▪ Cheque book printer in all branches
Decisions required
▪ Agreement on whether to offer uniformed service offering or differentiated offering
▪ Agreement on technological solution
Cost
▪ 4m
▪ 2.2m
▪ 2.2m
▪ 4.4m
PROCESS EFFICIENCY
11
Description
▪ 55 card printers with maintenance and support from Cupola
▪ 30 card printers with maintenance and support from Cupola
▪ 55 card printers (hardware only)
▪ 55 cheque book printers (personalized)
AED
▪ Print embossed magnetic stripe cards in 50% of branches
▪ 1.2m ▪ 30 card printers (hardware only)
▪ Cheque book printer in 50% branches
▪ 2.4m ▪ 30 cheque book printers (personalized)
▪ Cheque printer in all branches ▪ 358k ▪ 55 cheque printers (personalized)
▪ Cheque book printer in 50% branches
▪ 195k ▪ 30 cheque printers (personalized)
PIN pad▪ Pads for PIN generation ▪ 82k ▪ PIN pads for all SSOs
3. Process (contd.) High level cost/benefit analysis for card printers
0.7
0.2
TotalCredit card printing and dispatch
0.1
Debit card printing and dispatch
0.4
Cost savings from card ops
0.1
Printer invest-ment (5-year annual-ized) all branches1
0.8
Total today 20111
0.5
Credit card printing and dispatch
0.1
Debit card printing and dispatch
0.4
SOURCE: Procurement/external vendors, monthly SBR, Card Operations1 Annualized
Post cost savings, running card printers in all branches is AED +0.2 million more costly
AED (millions) Proposed investment
Approximate savings
PRELIMINARY
3. Process (contd.)
• Activate account
• Deliver se-curity items
• Ensure production
• Dispatch internally
• Perform relationship call
• Perform welcome call
• Meet customer promise for delivery
• Complete data entry
• Upload
signature
PERFORMANCE MANAGEMENT
Aligned KPIs across different units will result in measuring performance from the customer’s perspective
RM/SSO/TSU/PMU
CCAM
Card Ops (issue debit card)
CDC(Cheque book issuance)
DBC/TSU/ PMU/RM
CDC (de-livery to the customer)
Head of Proposition
Branch
▪ 30 min account activation
▪ Reduce reject rate to < 10%
▪ Meet business SLA on TAT, accuracy
▪ Same day cheque production
▪ Dispatch as per agreed schedule
▪ Overall On -Boarding
Area KPI
▪ Ensure customer contacted
▪ Meet objectives of Welcome call
▪ Meet objectives of relationship call
▪ Set up sales meetings
Decisions required
▪ Agreement on KPIs being tracked across units
▪ Agreement on owner of overall KPI
▪ Same day card production
▪ Dispatch as per agreed schedule
• Ensure production
• Prepare package
31
Single KPI across all units to be agreed (proposal for
overall TAT)
3. Process (contd.) Regular Performance Review meetings at different levels will ensure timely corrective actions
Performance review
Tracking mechanism
Daily MonthlyDaily
Level
Frequency
Huddle board daily/
monthly results
ThursdayWeekly Meeting
(5:00 pm)
Weekly
WNS Dashboard,
CCAM Performance
Board
Weekly MonthlyDaily
Level
Frequency
Teammanager
Processors/ Senior
Processors
Daily huddles not held
Weekly
Process Specialist
Weekly dashboard with WNS
From To
Team manager
Unit Manager
Process Specialist
Weekly Coaching,
1:1 Sessions
Monthly Meeting
Unstructured, irregular
fortnightly meetings
PERFORMANCE MANAGEMENT
Decisions required
▪ Agreement required on the frequency of the meetings at all levels
Daily Huddle(12:30
pm)
Processors/ Senior
Processors
Unit Manager
General Coaching sessions (during the day
as needed)
33
3. Process (contd.)
34
Morning huddles are structured and aligned with performance boards' data
Purpose: To identify plan for the day / week based on current results against KPIs. Highlight success areas with top performers. Review policy updates. Obtain feedback and define the concerns.
Attendees
▪ Team Manager
▪ All team members –Processors, Senior Processors, Process Specialists
Output
▪ All staff to be aware of gaps in performance
▪ All staff have a clear vision on what to be treated as Individual and Team Task for the Day
▪ Registered issue(s) for timely resolutions
Meeting rules▪ Update board with KPIs prior to the meeting▪ This is not a problem-solving meeting – agree to take problems/improvement ideas off line▪ Keep mobile devices switched off
Morning Huddle (15 mins)
Review team KPIs ▪ Discuss TAT / Accuracy percentage with process focus▪ Review errors and inquiries and identify areas of concern▪ Evaluate last day/week results, recognize top performers
Raise problems for resolution▪ Identify key / pending issue(s), appoint staff for resolution▪ Obtain feed-back , ideas for improvement on long-term goals
Agenda▪ Greet; check for absence ▪ Update on Update tracker (policy, product changes, etc.)▪ Discuss Team news / Team barometer
Summarize Plan of the Day▪ Identify 1 Item/ Initiative for Today – Errors / Accuracy /
Wrong up front rejects / Inquiries▪ Obtain commitment for training plans for business / WNS▪ Communicate / Reinstate the SLAs
Time
10 mins
Timing: 12:30 pmDaily at Performance Board
SOURCE: Discussions with CCAM – Head of CCAM, Unit managers, Process specialists
PERFORMANCE MANAGEMENT
Decisions required
▪ Institutionalize huddle in CCAM as way of management
2 mins
3 mins
3. Process (contd.)
40
Skills matrix developed to support skill development in CCAM
Impact through better skill development and more flexible
staffing
ORGANISATION AND SKILLS
4. Results
33
Onsite account activation now completed in 30 minutes and involves only two touch points1 with the bank
1 Changed status since last DMG
SOURCE: Team analysis
Branch
Welcome call
Relation-ship call
Fullyon
boarded
ActiveQuickAccount
Instant DebitCard
MOL
AssistedMOL access
Self Created PIN
TINthrough IVR1
Day 0 Day 1
… Key Improvements
• On-boarding time reduced from 4.5 – 7 days to same day
• Welcome and relationship call process in place
• Courier drop offs (24.4%) reduced by instant onsite delivery
Instantcheques
30 minutes
Day 211…
4. Results (contd.)
44
Offsite account activation now completed in 3 days and involves only three touch points1 with the bank
Welcome call
Relation-ship call
Day 0 Day 2Day 1
Key Improvements
• On-boarding time reduced from 6– 21 days to 3 days
• Welcome and relationship call process in place
…
Fullyon
boarded
ActiveAccount
Day4
Day211
Receivechequebook and debit card
Courier sets up delivery time with customer
Day 3
1 Changed status since design DMG
SOURCE: Team analysis
MOL access
MOL
TIN, PINthrough IVR1
Q & A
Thank You