Global Perspectives In Retail Banking Webinar
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Global Perspectives In Retail Banking Webinar

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Insights into leading retail banks in Europe, the Middle East and Australia

Insights into leading retail banks in Europe, the Middle East and Australia

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Global Perspectives In Retail Banking Webinar Global Perspectives In Retail Banking Webinar Presentation Transcript

  • Financial Services presents: Global Perspectives in Retail Banking: Leading Practices for Transforming the Branch Moderator: Don Ogilvie Presenter: Scott Burgess, Chris Gill May 20, 2008
  • Agenda • Introductions • A Global Tour In Search of Retail Insights • Getting Customers in the Door • Enhancing the Customer Experience • Leveraging New Distribution Models • Questions & Answers Copyright © 2008 Deloitte Development LLC. All rights reserved. 1
  • Branch density varies significantly across geographies Branch Density Underlying Factors Number of Branches per Million People in 2005 1000 952 • Self-service channel usage 800 – Penetration of direct deposit of payroll 563 – Cultural preference for face-to-face 600 436 400 304 312 contact 200 0 • New branch formats Australia U.S. Japan Germany Spain – Smaller branch footprints Number of 6 92 56 46 42 branches (000s) – Supermarket banking 1200 1116 1000 862 • Retail banking competitive 800 environment 600 – Shared branching 400 270 317 332 – Usage of post office locations for 200 banking transactions 0 New York Chicago Tokyo Frankfurt Madrid Number of 5.8 3.2 4.2 0.6 5.4 branches (000s) Source: US: FDIC; Australia: Australian Prudential Regulation Authority; Japan: BIS, Japan Bankers Association, Tokyo Metropolitan Government; Germany: Deutsche Bundesbank; Spain: Accom Consulting, European Central Bank, CECA, AEB; Population data from the Economist Intelligence Unit Copyright © 2008 Deloitte Development LLC. All rights reserved. 2
  • Poll question #1 1. How many times per month do you visit a branch for your personal banking transactions? A. 0 B. 1-2 C. 3-4 D. 5 or more Copyright © 2008 Deloitte Development LLC. All rights reserved. 3
  • Why focus on the branch? • Face-to-face contact in branches is Branch Transactions by Type still preferred for certain types of 2006 2010 interactions – New account opening (82% of consumers) 23% – Problem resolution (51%) 21% • Convenient branch access remains one of the most important criteria in selecting a bank 12% – In a recent Deloitte survey, 40% of consumers said convenient locations were extremely important 4% • Branches allow banks to compete on service and convenience rather than price Sales Service Copyright © 2008 Deloitte Development LLC. All rights reserved. 4
  • Poll question #2 2. What is your most important reason for visiting a branch (rather than using another channel such as an ATM, telephone banking, or online banking)? A. Open a new deposit account / apply for a loan B. Conduct a complex transaction or make a significant deposit or withdrawal C. Report / resolve a problem or servicing issue with your account (e.g., change your address, obtain a notary signature) D. Obtain specialized / personalized financial advice E. Visit your safe deposit box F. None of the above Copyright © 2008 Deloitte Development LLC. All rights reserved. 5
  • A global tour in search of retail insights • United Kingdom • Amsterdam – Barclays – Rabobank – Coutts – ABN AMRO – HBOS – Postbank – Hoare & Co. • Dubai – HSBC – Emirates Bank – Lloyd's – Mashreqbank – Nationwide Building Society – United Bank – Sainsbury – Tesco • Australia – Australia Post • Spain – ANZ – Banco Santander – Bank of Queensland – Banco Popular Espanol – Bendigo Bank – Bancaja – Commonwealth Bank – Bank Inter – GE Money Australia – BBVA – HBOS – MBF – CAN – Members Equity – El Corte Ingles – National Australia Bank – St. George’s – Westpac Copyright © 2008 Deloitte Development LLC. All rights reserved. 6
  • Getting Customers In The Door Enhancing The Customer Experience Leveraging New Distribution Models Copyright © 2008 Deloitte Development LLC. All rights reserved. 7
  • Creating a showcase destination Rabobank Source: Rabobank website Copyright © 2008 Deloitte Development LLC. All rights reserved. 8
  • Creating a showcase destination Umpqua Bank BBVA Source: BBVA, Umpqua Bank Copyright © 2008 Deloitte Development LLC. All rights reserved. 9
  • Partnering with cell phone providers • Sign up for cell phone service and obtain equipment at a Rabobank branch (in partnership with Orange Mobile) • Conduct financial transactions – Pay bills – Transfer funds – Check balances • Use your phone to buy merchandise and tickets • SMS messaging with special offers Copyright © 2008 Deloitte Development LLC. All rights reserved. 10
  • Poll question #3 3. What is your interest level in mobile banking for making transfers or paying bills? A. Already using mobile banking for these transactions B. Very interested C. Somewhat interested D. Not at all interested E. Not sure Copyright © 2008 Deloitte Development LLC. All rights reserved. 11
  • Promoting the branch as a community center Umpqua Bank CAN (Madrid) Source: CAN, Umpqua Bank Copyright © 2008 Deloitte Development LLC. All rights reserved. 12
  • Offering crowd-pleasing promos High-Demand Exclusive Promotional Gifts New Account Sweepstakes Source: Mashreqbank Copyright © 2008 Deloitte Development LLC. All rights reserved. 13
  • Poll question #4 4. Which of the following events would be of greatest interest in getting you to visit your branch more often? A. Seminars on financial topics (e.g. investments) B. Seminars on non-financial topics (e.g. digital photography, wine tasting) C. Social networking events D. Special marketing promotions (e.g. obtain a “hot” new product at a discount when opening a new account) E. Local community events (e.g. community organization fundraiser) F. None of the above Copyright © 2008 Deloitte Development LLC. All rights reserved. 14
  • Self-service – the next generation HSBC London Greeter Dance Floor Source: HSBC Copyright © 2008 Deloitte Development LLC. All rights reserved. 15
  • Replacing branch specialists with videoconferencing and webcams Ask an Expert Source: Umpqua Bank Copyright © 2008 Deloitte Development LLC. All rights reserved. 16
  • Poll question #5 5. When purchasing a specialized financial product, if your options are to either meet immediately with a specialist over a videoconferencing link, or schedule a face-to-face meeting with a bank representative at a later date, at the branch or your home/office, which option would you select: A. Videoconferencing link B. Face-to-face meeting in the branch C. Banker visit at your home or office D. None of the above Copyright © 2008 Deloitte Development LLC. All rights reserved. 17
  • Enhancing customer service and transparency The Bancaja Commitment • Bancaja has a 17 point commitment contract it has made to its retail customers in relation to their personal transactions. Sample Commitments Penalty 3. We will notify our customers of If we fail to send the SMS message, we insufficient funds and non-payments by will pay €10. means of an SMS message. 6. We will reply to loan applications within In case of breach, we will waive the 24 hours. arrangement fee. 9. We will inform you about the status of For each day of delay, we will pay €5, up your claims within 48 hours. to a maximum of €50. 11. We will replace your card within 24 hours In case of breach, we will pay €10. 14. If you lose your job, we will defer your In case of breach, we will defer an entire mortgage repayments for 6 months for year's repayments at no cost. no extra charge. Source: Bancaja Web site Copyright © 2008 Deloitte Development LLC. All rights reserved. 18
  • Leveraging third party sale forces to visit your customers mortgage connect 1 300 555 222 mobile home loans Source: Deloitte Australia Copyright © 2008 Deloitte Development LLC. All rights reserved. 19
  • Franchising –“McBanks” compete with community banks Bank of Queensland Bendigo Bank Source: Bendigo Bank Web site, Bank of Queensland Web site Copyright © 2008 Deloitte Development LLC. All rights reserved. 20
  • Franchising –“McBanks” compete with community banks Customer Satisfaction Financial Impact Deposit Growth – 3 years Bendigo 88% Franchisors 178 Major 4 Banks 100 BOQ 79% 0 50 100 150 200 Loan Growth – 3 years ANZ 74% Franchisors 157 Major 4 Banks 100 Westpac 69% 0 50 100 150 200 PE Multiples NAB 68% Franchisors 17.8 CBA 65% Major 4 Banks 14.5 0.0 5.0 10.0 15.0 20.0 Source: Roy Morgan; IRESS; Deloitte Consulting analysis Copyright © 2008 Deloitte Development LLC. All rights reserved. 21
  • Poll question #6 6. Would you be more or less likely to conduct your banking at a franchised branch location vs. a bank-owned branch, assuming you had the choice? A. Franchised branch B. Bank-owned location C. Not sure Copyright © 2008 Deloitte Development LLC. All rights reserved. 22
  • Expanding geographic reach through partnerships Copyright © 2008 Deloitte Development LLC. All rights reserved. 23
  • Poll question #7 7. What aspect of franchising appeals to you the most? A. Local ownership B. Local credit decision-making C. Better pricing flexibility tailored to the local market D. Re-investment of branch profits into the community E. Greater commitment to customer service F. None of the above Copyright © 2008 Deloitte Development LLC. All rights reserved. 24
  • What are the implications for your institution? • Create better opportunities to interact with retail and small business customers Branch • Position the branch as a retail Design outlet or community center, rather than as a transaction center • Tailor branch “look and feel” to the local community Copyright © 2008 Deloitte Development LLC. All rights reserved. 25
  • What are the implications for your institution? • Position the branch as a “destination” • Pursue opportunities to better understand customer needs and increase sales Customer Experience • More aggressively promote options for routine transactions through multiple self-service channels • Better leverage emerging technology to support specialized product sales Copyright © 2008 Deloitte Development LLC. All rights reserved. 26
  • What are the implications for your institution? • Provide greater transparency of fees and charges Customer Relationship • Establish commitments to specific Building service levels Copyright © 2008 Deloitte Development LLC. All rights reserved. 27
  • What are the implications for your institution? • Leverage third party distribution • Establish partnerships to expand Distribution customer reach and reduce Strategy servicing costs • Create lower-cost branch prototypes Copyright © 2008 Deloitte Development LLC. All rights reserved. 28
  • Questions & Answers
  • Join us on May at 2 PM EST 27th as Financial Services presents: Online Loans: The Silver Lining in the Cloud Over The Mortgage Industry? Copyright © 2008 Deloitte Development LLC. All rights reserved. 30
  • Thank you for joining today’s webcast. To request CPE credit, click the link below. Copyright © 2008 Deloitte Development LLC. All rights reserved. 31
  • Contact info Don Ogilvie: email: dogilvie@deloitte.com Scott Burgess: Tel: +1 703 251 3459 email: scottburgess@deloitte.com Chris Gill: Tel: +1 704 887 1855 email: cgill@deloitte.com Copyright © 2008 Deloitte Development LLC. All rights reserved. 32
  • This presentation contains general information only and is based on the experiences and research of Deloitte practitioners. Deloitte is not, by means of this presentation, rendering business, financial, investment, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte, its affiliates, and related entities shall not be responsible for any loss sustained by any person who relies on this presentation. Copyright © 2008 Deloitte Development LLC. All rights reserved. 33
  • About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Copyright © 2008 Deloitte Development LLC. All rights reserved. 34
  • A member firm of Copyright © 2008 Deloitte Development LLC. All rights reserved. 35 Deloitte Touche Tohmatsu