WQD2011 - INNOVATION - Mashreq Bank - Improving the on-boarding experience for retail customers


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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.

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WQD2011 - INNOVATION - Mashreq Bank - Improving the on-boarding experience for retail customers

  1. 1. Innovation Storyboard MashreqbankImproving the on-boarding experience for retail customers Jul 2011 – on going Lean Central Team
  2. 2. IntroductionAbout MashreqMashreq has provided banking and financial services to millions of customers and businesses since 1967.We are one of UAEs leading financial institutions with a growing retail presence in the region including Egypt, Qatar, Kuwait andBahrain.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 millionfrom a Total Operating Income of AED 4.4 billion over the same period. At the end of last year our Total Assets stood at AED84.8 billion.Our branch network extends across the UAE with one in every two households in the UAE banking with us. We also havecustomer service centers in key retail locations and one of the largest ATM networks in the country. We also have 12 overseasoffices in nine countries, including Europe, US, Asia and Africa. Vision Customer focused To provide our customers the most rewarding banking We act in the interest of our customers, seeking to exceed their relationships expectations Mission Transparent and fair Being relationship based We are clear, concise and open in all our communications, and Delivering superior service treat customers and our colleagues with fairness, respect and trust Being the primary bank to our customers Progressive Being the Employer of Choice We are fast, agile and constantly think of ways to enhance Values customer experience We are on a constant journey towards service Bold excellence, developing innovative new products and We challenge established practices and take smart risks financial solutions. Anticipating your needs and providing Individually Responsible you with new opportunities, convenience and peace of We each take responsibility for the quality of our work, the success mind, stem from our core beliefs. of the bank and delivering the brand promise to each customer Teamwork, cooperation and responsiveness drive the way we work and form the basis of our core values 2
  3. 3. 2. The IdeaDiagnostic indicated improvement opportunities across 5dimensions of the lean programmeKey improvement opportunities ▪ KPIs tracked at different units are not aligned end to end▪ Onsite account opening ▪ No link between KPIs and can be improved by ~60% overall bank performance without any further ▪ Lack of scoreboards at investment any of the units, only Process Efficiency Performance▪ Opportunity to achieve all dashboards reflect Management business turn around time performance targets ▪ Lack of structured and regular huddles Customer ▪ Main issues for staff: ▪ 6 units involved in the E2E – Excessive Mindsets onboarding process across 4 Organization documentation and different groups and Skills – Insufficient transfer Behaviours ▪ Minimal involvement of back of knowledge end units in the onboarding between frontline process in terms of FTEs and back end units ▪ Skills gaps required to be – Units working closed with coaching on the independently ▪ Surveys reflect customer‟s back of gap analysis to allow ▪ Staff expect: overall satisfaction below multi skilling and flexible – Collaborative work target being cheque books and resourcing environment debit cards delivery one of the – Sustainable changes main causes of dissatisfaction – Simpler processes ▪ The process to get fully for the customer onboarded involves 7 different touch points with the bankSOURCE: Team analysis 1
  4. 4. 2. The Idea (contd.)There is significant opportunity to improve Currentonboarding processes Opportunity Process Time savings2, days Improvement opportunities 1 Personal banking 4.5 ▪ Use quick account (with branch1 activation) for all onsite 2.0 onboarding 56% ▪ Standardize managerial approval and remove EDMS check 2 Manual account 6.0 SME branch1 ▪ Train front end staff in e- 2.0 name check and risk matrix 67% ▪ Document SLA for compliance response 3 Manual account 5.0 Gold center1 ▪ Trigger signature update 2.0 process on scanned images 60% ▪ Send AOF directly by the branch to Infofort rather than With additional investment through CCAM card printers and preprinted cheque books times could be reduced further to ~20 minutes1 On-site account opening2 Full onboarding process, including active account and delivery of all security items and accesses 2
  5. 5. 2. The Idea (contd.)VOICE OF THE CUSTOMERTransaction survey indicates issues with cheque books anddebit cards Key drivers tracked as part of onboarding Overall satisfaction for CASA customers 100 Ease of completing application forms 90 85% and related document 80 Time taken to 70 open the account 60 50 Product features and services 40 30 Providing product related information 20 10 Bundled or value 0 added service Q2 ‟10 Q3 ‟10 Q4 ‟10 Q1 ‟11 Time taken to receive Key insights cheque books, etc. ▪ Gaps to target persist, with significant improvement opportunities 0% 50% 100% ▪ Receiving fully on-boarded account significantly below target 85%SOURCE: Transaction survey (Product quarterly report by Market probe), Jan ‟11 – Mar ‟11 4Personal banking - Current accounts opened at branches
  6. 6. 2. The Idea (contd.)VOICE OF THE CUSTOMERLate delivery of cheque books and debit cards reduce customersatisfaction More than 50% Incidence Percent of the packages Satisfaction are delivered 100 after 5 days 90 Most significant drop 82 81 of satisfaction level 80 after 2 weeks 72 72 70 60 47 48 50 38 40 35 30 27 20 17 10 7 3 1 2 0 < 2 3- 5 6- 7 8 - 15 16 - 21 22 - 30 > 30 days 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 SOURCE: Transaction survey (Product quarterly report by Market probe), Jan ‟11 – Mar ‟11 5 Personal banking - Current accounts opened at branches
  7. 7. 2. The Idea (contd.)VOICE OF THE CUSTOMERIssues with cheque book and debit card also high in complaintslog Customer feedbackCRM complaints logGold General Banking "My address / mobile details are still not updated?"120 3,500100 3,000 2,500 80 2,000 "What I was 60 1,500 promised as part of 40 1,000 my welcome pack 20 required continuous 500 follow-up" 0 0 Address Cheque Benefits Account Address Benefits Cheque Account not book not not not not book not updated not received activated updated received not activated received/ received/ "Still do not have not issued not issued my cheque book and no one knowsSME CCAM Mail Box where it is or who I need to call?" 50 800 40 600 “I am not 30 interested in an 400 20 account number! I would like to have a 200 10 fully functional account which is in 0 0 line with the Cheque Account Address Benefits Escala- Activa- Com- Pending Com- Mashreq Promise as book not not not tion tion plaints: status plaints: part of my welcome not activated updated received inquiries CIS signature pack!” received/ linkages not not issued updatedNote: Totals presented for CRM data is a sample of 12 months – June 2010 to May 2011; CCAMMail Box data is a sample of 3 months – April 2011 to May 2011 6
  8. 8. 2. The Idea (contd.)VOICE OF THE CUSTOMERCustomer journey to a new account involves 7 touch pointswith the bank Snooze Snooze MOL DBC WWW TIN MOL Apply Receive - TCC TCC Branch - Mobile Courier2 0.5-3 days 1.0% 37.7% 0.0% 4 days 17.4% 7.6% Snooze Fully on boarded Primarily due to account number / TIN being Letter incorrectly entered by Welcome Relation- box the customer call ship call PIN 0.5-3 days 9.3%1 N/A N/A DST Snooze 6% of customers receive cheque books and debit cards after 2 weeks or more (e.g. 2% take more Timeline 20‟ - 1 day Cheque, than 1 month) 2 DCC Reworks 31.3% Courier1 0.5-3 days 24.4% Current total time: 4.5 - 7 days1 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 7
  9. 9. 2. The Idea (contd.)PROCESS EFFICIENCY X % of applications that go through each unitCustomer onboarding process 100% = 2,677 ø / month1 Touch points 100 0.5 30.4 DST - Payroll Mail centre 100 15.5 51.1 Card Ops ▪ Branch delivery CCAM DST - SME ▪ DCC generation 1.8 ▪ Manual account Mail centre Gold 48.9 Data centre ▪ Pin delivery to CCAM Empost 3.4 ▪ Pin print SME branch ▪ Quick account 99.5 46.9 * Data centre Branch 30.3 Courier 7.3 ▪ TCC print ▪ Aramex, Eurostar Compliance ▪ A/C opening (DCC + cheque) 66.0 ▪ Risk level (L3) CDC Courier DBC 23.0 ▪ Delivery, ▪ Orange (TCC) ▪ TIN Compliance dispatch, vendor 56.5 ▪ Ename check management WWW 0.5 Branch delivery ▪ MOL access Vendor – Cupola centre 21.0 ▪ Card issuance ▪ Cheque book, MOL DCC ▪ TCC access Vendor – NPP 56.4 Empost ▪ Cheque book MOL ▪ Pin delivery issuance ▪ Mobile banking* Only for DST (SME and payroll > 9,000)1 Three months RBG data (March – May 2011) 9
  10. 10. 3. ProcessE2E design executive summaryDesign solutions▪ On-site customer on- ▪ KPIs aligned across all boarding reduced to 30 units involved in the minutes with only one client on-boarding touch-point process Process efficiency Performance▪ Off-site customer on- management ▪ KPIs linked to overall boarding reduced to next bank performance day for Gold and 3 days for ▪ Performance SME and personal banking scoreboards designed for CCAM▪ Solutions to achieve all Customer ▪ Structured and regular business turn around time Mindsets and Organization huddles for CCAM targets identified behaviours and skills▪ Welcome and relationship calls designed for improvement of customer ▪ Skills gaps for CCAM experience and cross sell staff identified and opportunities training plan being ▪ As identified in the „Voice of finalized to allow multi ▪ Staff issues identified in customer‟ survey, design skilling and flexible focus group to be solutions focus on personalized resourcing addressed though planned cards, courier delivery of items re- enforcement. instead of pick-up at branch, and bound cheque books instead ▪ Regular and structured of loose cheque leaves surveys to ensure staff engagement and change acceptance 1
  11. 11. 3. Process (contd.)VOICE OF THE CUSTOMERMajority of customers (59%) want cheque book and debit carddelivered on same day Customer expectations on cheque book Customer expectations on receipt of MOL and debit card delivery access, TIN, TCCPercent 59% Percent 68%40% 40%35% 35%30% 30%25% 25%20% 20%15% 15%10% 10%5% 5%0% 0% Immediate Same day Next day 2nd day 3 days or Immediate Same day Next day 2nd day 3 days or more more 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 SOURCE: Customer survey on account on-boarding experience from July 25th to July 6 31st run on 10 branches (103 customers)
  12. 12. 3. Process (contd.)VOICE OF THE CUSTOMERDesign solutions address key issues identified in VoC analysis Key issues Design solutions ▪ Customer dissatisfaction with the time ▪ Quick account for all onsite customers taken to open the account with generation of account number and ▪ Account not activated activation in ~ 30 minutes ▪ Difficulty in completing application forms ▪ Consolidated form for multiple products and related documents and requirement customer information only once across products ▪ Address not updated ▪ Reduced front line up front rejections, ensuring quick completion of data entry by CCAM ▪ More than 50% of the packages are ▪ Enhanced delivery schedules for offsite delivered after 5 days customers (from 4 to 3 days) and Percent 100 instant cards and cheques for onsite 90 82 81 customers 80 72 72 70 60 47 48 50 38 40 35 30 27 20 17 10 7 3 1 2 0 <2 3- 5 6- 7 8 - 15 16 - 21 22 - 30 > 30 daysSOURCE: Customer questionnaire on on-boarding run in branches 7
  13. 13. 3. Process (contd.)PROCESS EFFICIENCYInstalling card printers in all branches cost AED 4m, but thereare less costly alternativesAED Options Cost Description ▪ Print embossed chip cards in all ▪ 4m ▪ 55 card printers with maintenance and branches support from Cupola ▪ Print embossed chip cards in ▪ 2.2m ▪ 30 card printers with maintenance and 50% of branches covering 80% support from Cupola Card of account openings ▪ Print embossed magnetic stripe ▪ 2.2m ▪ 55 card printers (hardware only) cards in all branches ▪ Print embossed magnetic stripe ▪ 1.2m ▪ 30 card printers (hardware only) cards in 50% of branches ▪ Cheque book printer in all ▪ 4.4m ▪ 55 cheque book printers (personalized) branches ▪ Cheque book printer in 50% ▪ 2.4m ▪ 30 cheque book printers (personalized) branches Cheque ▪ Cheque printer in all branches ▪ 358k ▪ 55 cheque printers (personalized) ▪ Cheque book printer in 50% ▪ 195k ▪ 30 cheque printers (personalized) branches ▪ Pads for PIN generation ▪ 82k ▪ PIN pads for all SSOs PIN pad Decisions required ▪ Agreement on whether to offer uniformed service offering or differentiated offering ▪ Agreement on technological solution 11
  14. 14. 3. Process (contd.)High level cost/benefit analysis for card printers PRELIMINARYAED (millions) Proposed investment Approximate savings 0.1 0.4 0.8 0.1 0.7 0.5 0.2 0.1 0.4 Post cost savings, running card printers in all Debit card Credit Total Printer Cost Debit card Credit Total branches is AED printing card today invest- savings printing card +0.2 million more and printing 20111 ment from and printing costly dispatch and (5-year card ops dispatch and dispatch annual- dispatch ized) all branches1SOURCE: Procurement/external vendors, monthly SBR, Card Operations1 Annualized
  15. 15. PERFORMANCE MANAGEMENT 3. Process (contd.)Aligned KPIs across different units will result in measuringperformance from the customer’s perspective Area KPI • Activate ▪ 30 min account account activationBranch • Deliver se- ▪ Reduce reject rate to curity items < 10% • Complete data entry ▪ Meet businessCCAM SLA on TAT, • Upload signature accuracyCDC • Ensure Single KPI across all units to ▪ Same day cheque(Cheque production be agreed (proposal for productionbook • Dispatch overall TAT) ▪ Dispatch as perissuance) internally agreed scheduleCard Ops • Ensure ▪ Same day card production production(issuedebit card) • Prepare ▪ Dispatch as per package agreed scheduleCDC (de- • Meet ▪ Ensure customerlivery to customer contactedthe promise forcustomer) delivery ▪ Meet objectives of • PerformDBC/TSU/ Welcome call welcomePMU/RM call ▪ Meet objectives of • PerformRM/SSO/ relationship call relationshipTSU/PMU call ▪ Set up sales meetingsHead of ▪ Overall On -Proposition Boarding Decisions required ▪ Agreement on KPIs being tracked across units ▪ Agreement on owner of overall KPI 31
  16. 16. PERFORMANCE MANAGEMENT 3. Process (contd.) Performance review Regular Performance Review meetings at different Tracking mechanism levels will ensure timely corrective actions From To Frequency Frequency Daily Weekly Weekly Monthly Daily Daily Weekly Monthly Unit Unit Manager Manager Thursday Weekly Meeting (5:00 pm) Team Weekly TeamLevel manager manager Level dashboard with WNS Unstructured, Monthly irregular Meeting fortnightly meetings Daily Huddle Process Daily Process (12:30 Weekly Specialist huddles Specialist pm) Coaching, General 1:1 not held Coaching Sessions sessions (during the day Processors Processors as / Senior / Senior needed) Processors Processors WNS Huddle Dashboard, board CCAM daily/ Decisions required Performance monthly Board ▪ Agreement required on the results frequency of the meetings at all levels 33
  17. 17. PERFORMANCE MANAGEMENT 3. Process (contd.)Morning huddles are structured and aligned with performanceboards data Timing: 12:30 pm Morning Huddle (15 mins) Daily at Performance Board 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. Time Attendees Agenda ▪ Team Manager ▪ Greet; check for absence 3 mins ▪ All team members – ▪ Update on Update tracker (policy, product changes, etc.) Processors, Senior Processors, ▪ Discuss Team news / Team barometer Process Specialists Review team KPIs Output ▪ Discuss TAT / Accuracy percentage with process focus ▪ Review errors and inquiries and identify areas of concern ▪ All staff to be aware of gaps in ▪ Evaluate last day/week results, recognize top performers performance 10 mins Raise problems for resolution ▪ All staff have a clear vision on ▪ Identify key / pending issue(s), appoint staff for resolution what to be treated as ▪ Obtain feed-back , ideas for improvement on long-term goals Individual and Team Task for the Day Summarize Plan of the Day ▪ Identify 1 Item/ Initiative for Today – Errors / Accuracy / ▪ Registered issue(s) for timely Wrong up front rejects / Inquiries 2 mins resolutions ▪ Obtain commitment for training plans for business / WNS ▪ Communicate / Reinstate the SLAs 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 offDecisions required▪ Institutionalize huddle in CCAM as way of managementSOURCE: Discussions with CCAM – Head of CCAM, Unit managers, Process specialists 34
  18. 18. 3. Process (contd.)ORGANISATION AND SKILLSSkills matrix developed to support skill development in CCAM Impact through better skill development and more flexible staffing 40
  19. 19. 4. ResultsOnsite account activation now completed in 30 minutes andinvolves only two touch points1 with the bank Day 0 Day 1 … Day 211 … Key Improvements 30 • On-boarding minutes time reduced from 4.5 – 7 days to same day Active Instant Self • Welcome and Quick Debit Created relationship call Branch Account Card PIN Fully on process in place boarded • Courier drop MOL offs (24.4%) Welcome Relation- call ship call reduced by instant onsite delivery Instant TIN Assisted cheques through MOL IVR1 access1 Changed status since last DMGSOURCE: Team analysis 3
  20. 20. 4. Results (contd.)Offsite account activation now completed in 3 days andinvolves only three touch points1 with the bank Day … Day Day 0 Day 1 Day 2 Day 3 4 211 Key Improvements • On-boarding time reduced Receive from 6– 21 days cheque to 3 days book and Active debit card Fully • Welcome and Account on boarded relationship call process in place Courier sets up delivery Welcome Relation- MOL time call ship call with customer MOL TIN, PIN access through IVR11 Changed status since design DMGSOURCE: Team analysis 4
  21. 21. Q&A
  22. 22. Thank You