Branch Transformation (Presentacion)


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Bob Tramontano, Director de Operaciones de Negocios de la Industria Financiera de NCR Corporation.
13° Congreso Internacional de Tecnología para el Negocio Financiero

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Branch Transformation (Presentacion)

  1. 1. Bob TramontanoDirector de Operaciones de NegociosIndustria Financiera de NCR Corporation
  2. 2. NCR ConfidentialThe Future Role of the branchReach willing customers. Satisfy needs. Deliver service & profit.
  3. 3. NCR ConfidentialCONSUMER DEMANDSCONSUMERDEMANDS“I want personalized bankservices at times convenientto me”“I want to deposit or makepayments any time day ornight”“I expect always-availablebank services that are secureand know my preferencesacross all points of service”CONSUMERDEMANDSBUSINESSIMPERATIVESTHEBUSINESSDEMANDGAPLeverage my existinginfrastructure to sell andserve customers moreefficiently while complyingwith regulationsExpand advisory servicesand deepen relationshipsMonetize consumer loyaltyby re-defining multi channelexperiencesThe Demand gap is rapidly expanding.Consumer expectation boundaries are stretching. Bankers need to meet them, Profitably.
  4. 4. NCR ConfidentialConsumers expect Branches to be part of their new ecosystemConsumers self - inform via multiple sources, creating complex transacting & decision pathways.PURCHASEFRIENDEVANGELIZETRUSTDECIDECOMPARERESEARCHSEARCHDISCOVERDECIDEGETHELPSHAREDISCOVERWEB COMPANYWEBSITEMOBILE BRANCH/STORECALLCENTERSOCIAL73% of Consumerstrust friends, family &social media forbanking informationBanks must ready tooffer the next level ofinteraction wherever,wheneverDeliveringBranch Capabilitywhere consumerswant to transactBanks no longer haveclear control of theservice & salesengagement model
  5. 5. NCR ConfidentialTraditional Profit models are under pressure.Traditional profitability models failing. Unprecedented need to create new, sustainable profit models.Low spreads onLending & creditbalance marginsFee based incomereducing with newregulationLegacy Branch networkcosts remain,customers fill thebranches but revenuesdecreaseTypical Global averageCost : Income Ratiorising to 50%Increased Regulation &Basel 3 reduce ROE onretail banking by 20%45% of typical bankcosts attributed todistribution channel
  6. 6. NCR ConfidentialBranch Transformation strategies are converging.Its about reaching the customer - doing profitable business with them, where they like to do business.2005Differentiation throughdesign, no ROI model2010Branch is the losschannel & must close2013Create more effective Branches, ExpandReach, Grow market share, reduce cost toserveTypically 4 or 5 newbranch formatsCustomizable model fitsdemographic & wealthmarket specificsReduced footprint,operation costs, with90% customer spaceModular, rapidlydeployable, often withretail partner, workplace, university
  7. 7. NCR ConfidentialNew Opportunity – Acquire small business & personal custom.Argentina – a rich vein of potential to establish New SME & Retail customer relationshipsOpportunity Size14.5m consumers60%+ of workingpopulation remainunbankedWorld average11%Opportunity Size26% of adultssaved money in2012.Only 8% with banksOpportunity SizeAlmost 12,000 newsmall businessesstart up every yearThe ChallengeProvide good value,personalizedservices to attractGen X, Y and SMESource: World Bank 2012
  8. 8. NCR ConfidentialA Profitable Branch Network Expansion StrategyLeaner, reduced footprint Branches. Expanding into new territories. Servicing the full customer base.
  9. 9. NCR ConfidentialThe Economics of branch network expansion in the future.Profitable points of presence. Reaching customers. Closing the capacity gap. Accelerating fulfilment.TodayTomorrowTraditional BranchATMIconicExpressMicroSelf ServiceATMTargetsegment/micro marketPoints of Presence4‘Old’ Branch formatsPoints of Presence9‘New’ Branch formats•Fact – 76% Increase in sales revenue at 42% of the traditional cost• Tailor digital and physical servicedistribution to market priorities• Improve economics throughcapital-lite network model• Synchronize channels to createan informed sales platform• Translate higher relevanceinteractions into financialresults
  10. 10. NCR Confidential93 Sq mts33% of traditionalbranch footprint195% of traditionaloperating incomeper sq mts49% of thetraditional operatingcost per sq mts.40% of traditionalStaffing model costExpress Branch FormatNCR Technology. Blending strategies - Transaction efficiency. Consumer experience. Revenue generation.
  11. 11. NCR Confidential12• NCR technology enables blended ConsumerExperience & Revenue generation strategy.• Technology allows staff to pay attention toorchestrating customer transaction & buyingcycle.• Customers interact with roving bankers, availableto assist during business hours - branch convertsafter hours to a 24 hour self-service zone.• Capital and operating costs are 50% less than atraditional branch, while offering similar levels ofsales, service, and transaction capabilities.Wells Fargo, Neighborhood branch initiativeSmall footprint. No back office. Transacting capability, staff interaction, Private discussion.
  12. 12. NCR ConfidentialBradesco, Future Branch.Creating, highly consumer centric, Interactive discovery & sales environment13• NCR “Cantilever ATM engineering”technology enabling market drivenformat• Behind the advanced look and feel,space devoted to self financialmanagement, not just transactions• Video conferencing assisted serviceavailable
  13. 13. NCR Confidential46 Sq mts17% of traditionalbranch footprint400% of theoperating incomeper sq mts36% of theoperating cost persq mts25% of thetraditionalstaffing model costMicro Branch FormatNCR Technology. Blending strategies - Transaction efficiency. Consumer experience. Revenue generation.
  14. 14. NCR ConfidentialNorth American Credit UnionsLean. Reaching members. Driving cheaper banking for 45% of US banking consumers.• New formats, allow entrance to new transactinghotspots eg Hospitals & Malls.• Small, agile organisations using to compete withnational competition• Using Video ATMs to run branches, without theback office needs• Reinvesting efficiencies to drive better pricing formembers productsWright Patt CUFirst Ontario CU
  15. 15. NCR Confidential23 Sq mts10% of traditionalbranch footprint1000% of theoperating incomeper sq mts.18% of theoperating cost persq mts.5% of the traditionalStaffing model costSelf Service Branch FormatNCR Technology. Blending strategies - Transaction efficiency. Consumer experience. Revenue generation.
  16. 16. NCR ConfidentialNew Technology, New PossibilitiesRealize New profitable Branch formats, capable of reaching new customers, delivering value.
  17. 17. NCR ConfidentialLeveraging a new category of technology to deliver direct impact ontransaction efficiency, consumer experience and sales opportunities1 1 0.8 1Full Service0 1Self ServiceStaff Consumer1 3 1 3Assisted Service (In Person and Remote)3The Key – Assisted ServiceCombining Self Service & Full Service to offer personalized attention, cost effectivelyMigrationcatalystServiceexpansionIncreasedsales RevenueStaff salesproductivityCustomersatisfaction &personalization
  18. 18. NCR ConfidentialAPTRA Interactive Teller – Underpinning network expansion.Live Video / Audio Interaction, with Centralized Video Teller, who has full remote control of the ATMCard or CardlessauthenticationID Scanner orDigital SignaturecaptureRich on screengraphicseducatingcustomer astransaction flowsTeller has fullpower to over ridenormal businessrules & limitsVideo / Audio,Privacy handset,Text Chat
  19. 19. NCR ConfidentialAPTRA Interactive Teller – Case StudyFirst Ontario Credit Union, CanadaCreated 4 newbranch formats &new expansionstrategyDeployed in NewLocationsHospital Branch– permanent3000 customerbaseStaff customizedto matchdemographics oflocal communityMall Branch –10 million annualconsumerfootflow
  20. 20. NCR ConfidentialDeposit the days takings in less than 60 seconds, anytime day or nightImproved customer experienceBulk CashCheckdeposit24/7convenienceImmediateValidation,real timecreditEnable loan & billpayments through selfservice network“The cost efficiencies make it practical forany size institution to deploy depositautomation…A picture is worth a thousandwords.” - Carl Ratcliff, President and CEO ABNB FCU24/7 time freedomfor small businessImproved operational efficiencyIntelligent Deposit – Add transaction capacity to the ecosystem.Cashflow management solution for small business. Account Management for Personal customers.
  21. 21. NCR Confidential• ING removed all teller counters from thebranches, using Intelligent deposit ATMs• All branch staff are now Universal Bankers• Operation costs down 30%• Staff sales results up 100%ING Belgium, Europe – Intelligent Deposit Case StudyFocus on creating, agile, flexible modular branch formats
  22. 22. NCR ConfidentialImproved customer experienceSpeedy SecureReducetransactiontime to 10sAdd transactional valueto the mobile channelImproved operational efficiencyMobile Cash withdrawal – Add transaction speed to the ecosystemMobile cash withdrawal enables speedy transacting at ATMs, relieving branch traffic.
  23. 23. NCR ConfidentialThe Management BenefitsTechnology enhances management, unburdens compliance
  24. 24. NCR ConfidentialCustomized Staff Interaction – Matching local market needsStaff performance and customer interaction management made easier.• Instantly deploy SMESpecialists• Who know local markets• Educate staff onwithout having to visitthe branch• Match staff to customer• Demographics oreconomic groups• Flexible daily gameplan for each branch• Adapting the sales &service cycles
  25. 25. NCR ConfidentialBRANCHTRANSFORMATIONNCR solutions and services todeliver disruptive change to bankrevenue models and physicalnetwork distribution26