Customer Centricity - Strategies to Attract and Retain Customers    Lance Tay    Senior Director, Financials Services Glob...
Lance Tay        Senior Director, Financial Services Global Business Unit        lance.tay@oracle.com    •    Lance Tay is...
Oracle in                   Did You Know?                                       Banking                           10 of th...
Growth Challenge – Attracting & Retaining Customers              Grow Business &               “How can I streamline my bu...
A New Approach to Increasing Growth           Become a Customer-Centric Enterprise          A Customer-Centric Enterprise ...
The Customer-Centric Enterprise     Key Imperatives                       Provide a seamless, unified customer            ...
Create a Customer Centric Enterprise     Requirement                  Oracle Capability    The Oracle Difference          ...
Need for Single View of Customers       Grow Business & Share of           Lower TCO       Customer Wallet                ...
Master Data Management for Banking       Provide a Single Source of Truth for Customer Data                               ...
The Value of Intelligent Interactions        • Better understanding of customer behavior and buying patterns        • Iden...
Pre-built Customer Analytics for Banking         Drive Intelligent Customer Interactions                                  ...
Service Analytics         Complete Solution for Entire Service Lifecycle                    Service Analytics             ...
Create a Customer Centric Enterprise     Requirement                          Oracle Capability               The Oracle D...
Closed Loop Marketing for Banking                                                                                         ...
Closed Loop Marketing for Banking       Deliver Multi-Channel Campaign & Offer Management        Acquisition              ...
360 Degree Customer View Through Integrated Banking       Sales & Service       Show a Complete View of Customer to Custom...
Summary - Customer Centricity Strategy for     Attracting & Retaining (Profitable) Customers       Universal Customer     ...
What Customers are Achieving             “Our Multi-channel Program delivered by PeopleSoft Enterprise              CRM, e...
The Only Complete Banking Solution                                                                             Platform   ...
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Oracle's Customer Centricity Strategy for Banks

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Customer Centricity Strategy for Banks, in association with IBBM (Institut Bank-Bank Malaysia). Presented in Kuala Lumpur Feb 2011.

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Oracle's Customer Centricity Strategy for Banks

  1. 1. Customer Centricity - Strategies to Attract and Retain Customers Lance Tay Senior Director, Financials Services Global Business Unit Kuala Lumpur, 24 Feb 2011 Safe Harbor Statement The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.2
  2. 2. Lance Tay Senior Director, Financial Services Global Business Unit lance.tay@oracle.com • Lance Tay is the Senior Director for Banking across Asia Pacific in Oracle’s Financial Services Global Business Unit (FSGBU). • In this role, Lance is responsible for providing deep domain expertise to Oracle’s financial services customers across all of Oracle’s applications and technology products. Lance brings to this role a wealth of experience and valuable insight gained through over fifteen years of experience working with some of the region’s largest financial services companies. His domain expertise includes retail banking, wealth management, and trade finance. Lance has worked with major financial institutions in Australia, New Zealand, South East Asia, India, China, and S. Korea. • Lance is considered a retail banking IT strategy thought leader within the financial services sector and is a regular commentator in leading industry publications. He is often invited to speak at industry seminars about breakthroughs in banking IT strategy. • Prior to joining Oracle, Lance held management positions at The Boston Consulting Group, Accenture, and Cisco Systems. Lance also worked at Fidelity-NIS, and Procter & Gamble. • Lance holds a MBA from Cornell University, and a Bachelor of Science from the Southern University of New Hampshire. He has also lived in Sydney, Bangkok, Mumbai, and Geneva.3 Agenda • Leadership in Banking • Create a Customer Centric Enterprise • Results Achieved by Oracle Customers4
  3. 3. Oracle in Did You Know? Banking 10 of the top 10 Global banks use Oracle Applications to run their business 15 of the top 20 Global banks use Oracle Applications to measure and manage their performance5 The Challenges We’re Hearing – Globally and Locally Grow Business & “How can I streamline my business processes to grow Cross-Sell to wallet share and shorten time to market for new products Customers and services?” “The average cost to acquire a new customer is $3,500 in the US” Compliance & “How can my organization meet the increasing regulatory Regulatory compliance demands?” Pressures “IT spend on compliance will grow annually at 14.1% and reach $3.0 billion by 2006” Scale Costs to “How can I improve cost efficiency ratios while Match Market providing greater value to our customers?” Opportunity “In the near to intermediate term, the industry is expected to continue to experience pressures on its net interest margin”6
  4. 4. Growth Challenge – Attracting & Retaining Customers Grow Business & “How can I streamline my business processes to grow Cross-Sell to wallet share and shorten time to market for new products Customers and services?” Annual Median Defection Rates (%) Defection rates are high while share 16 of wallet remains low 14 14 Average Number of Products at a Single 12 11 Institution = 2 10 8 6 4 4 2 2 Average Number of 0 Products Per Household = 15 US Canada UK France Source: Celent Communications7 Customer Centricity – Strategy for Attracting & Retaining (Profitable) Customers • “Universal Truths” In Successful Sales • Good service earns the right to sell • Customer word-of-mouth is powerful • Different customer segments have different definitions of good service and value • New “Universal Truths” • Mobile Internet word-of-mouth is ALL powerful • Customers DEMAND a consistent experience across all touch-points, 24x7 • A segment of ONE8
  5. 5. A New Approach to Increasing Growth Become a Customer-Centric Enterprise A Customer-Centric Enterprise empowers employees with customer data and insight through end-to-end business processes to ensure the best decisions are made for both… Customer …the company - and - the customer… …at any customer moment of truth while providing a seamless customer experience.9 Consultants, Analysts, and Bankers Agree ! Leaders Understand Link Between Service and Sales (BCG – Global Retail Banking 2010) Turning Customer Satisfaction Into Shareholder Value (McKinsey – Rediscovering The Customer)10
  6. 6. The Customer-Centric Enterprise Key Imperatives Provide a seamless, unified customer experience for all customer interactions regardless of internal organization Transform customer data into actionable information by providing the right information to the right person at the right time Extend customer understanding throughout the enterprise thus enabling all functional areas to make informed, customer-based decisions11 Agenda • Leadership in Banking • Create a Customer Centric Enterprise • Results Achieved by Oracle Customers12
  7. 7. Create a Customer Centric Enterprise Requirement Oracle Capability The Oracle Difference Universal Only complete repository for Provide a single source of Customer data across the enterprise truth for customer data Master for accessible by a hub & spoke Banking model Pre-built Only end to end Drive intelligent customer Customer performance & profitability interactions Analytics for analytics in context of Banking customer interactions Only complete offer & Deliver multi-channel Closed Loop campaign mgmt solution campaign & offer Marketing for with built in analytics to management Banking measure & refine marketing programs 360 Degree Customer View Only multi-channel sales, Show a complete view of Through service, marketing and customer to customer Integrated transaction solution pre- agent Banking Sales & integrated with core banking Service13 Create a Customer Centric Enterprise Requirement Oracle Capability The Oracle Difference Universal Only complete repository for Provide a single source of Customer data across the enterprise truth for customer data Master for accessible by a hub & spoke Banking model Pre-built Only end to end Drive intelligent customer Customer performance & profitability interactions Analytics for analytics in context of Banking customer interactions Only complete offer & Deliver multi-channel Closed Loop campaign mgmt solution campaign & offer Marketing for with built in analytics to management Banking measure & refine marketing programs 360 Degree Customer View Only multi-channel sales, Show a complete view of Through service, marketing and customer to customer Integrated transaction solution pre- agent Banking Sales & integrated with core banking Service14
  8. 8. Need for Single View of Customers Grow Business & Share of Lower TCO Customer Wallet • Centralize customer information • Shift from product centric to management customer centric view • Automate error handling, account • Improve the effectiveness of setup & other administration costs cross-sell and up-sell efforts Provide Consistent, Manage Governance, Risk & Differentiated Service Compliance • Create consolidated, customer • Meet rules for corporate profile across channels and governance, e.g. Sarbanes-Oxley operational systems • Address risk management • Make informed decisions during provisions, such as BASEL II customer interactions • Comply with regulations such as • Detect and manage customer USA PATRIOT Act, Gramm-Leach- events Bliley Privacy Act, ACORD, MiFID15 Master Data Management Enables a Single View Complete Master Data …Enables a Single View Management Solution… Of Customers • Creates and maintains a unique, complete and accurate customer information across the enterprise • Distributes customer information to all operational applications just in time • MDM enables organizations to: • Know your customers • Improve data quality • Utilize customer insight during all customer interactions • Comply with privacy and regulatory requirements • Reduce data management costs16
  9. 9. Master Data Management for Banking Provide a Single Source of Truth for Customer Data Integration Data Quality Services Services Customer OAS Data Hub Web 10g Services Siebel Oracle CRM ERP ISV Core Partners Systems 3rd Party Vendors Update Update Execute Execute Propagate Propagate Synchronize Synchronize Customer Customer Survivorship Survivorship Updates Updates • Modify Customer • Cleanse Data • Determine relevant • Publish updates into Information • Determine systems customer data hub • Changes in any Survivorship • Send new account from core and back application are • Merge Records information office systems transmitted to master • Cross-Reference • Respond to master data hub Customers customer changes17 Create a Customer Centric Enterprise Requirement Oracle Capability The Oracle Difference Universal Only complete repository for Provide a single source of Customer data across the enterprise truth for customer data Master for accessible by a hub & spoke Banking model Pre-built Only end to end Drive intelligent customer Customer performance & profitability interactions Analytics for analytics in context of Banking customer interactions Only complete offer & Deliver multi-channel Closed Loop campaign mgmt solution campaign & offer Marketing for with built in analytics to management Banking measure & refine marketing programs 360 Degree Customer View Only multi-channel sales, Show a complete view of Through service, marketing and customer to customer Integrated transaction solution pre- agent Banking Sales & integrated with core banking Service20
  10. 10. The Value of Intelligent Interactions • Better understanding of customer behavior and buying patterns • Identify selling opportunities in real-time (critical for internet age) • Target the right products to the right customers and the right time • Understand customer value to move customers into more profitable relationships • Retain high-value customers21 Unique Value of Analytics Applications Leading Customer …with Banking Specific Analytics Solution… Analytic Applications • Extends insight from front office to back office with insight into entire business process • Lowers TCO, Speeds Time To Value • Enhances value of Front Office • Over 4 years of development and CRM investments market success • Deeply integrated with CRM • THE leading Customer Analytics banking applications solution • Integrated analytical insight into • Hundreds of successful customers your CRM processes • Broadest support of Siebel CRM versions • Pre-built ETL Maps/Data Integration, Dashboards & Reports22
  11. 11. Pre-built Customer Analytics for Banking Drive Intelligent Customer Interactions Databases BI Dashboards Analytics Server Data Warehouse Real-time Real-time Customer Customer Operational Operational Executive Executive Decisions Decisions • Interaction History • Performance • Line of Business • Multi-channel Engine • Customer Behavior Scorecards Analytics for Real Time • Segment Migration • Operational Cost • Regional Analytics Recommendations • Propensity to buy Analysis • Trends • Retention Actions • Bank Performance • KPI Monitoring Analytics23 Sales Analytics Complete Solution for Entire Sales Cycle Sales Analytics Analyze pipeline opportunities and forecasts to determine actions required to meet sales targets. Determine which products and customer segments generate the most revenue and how to effectively cross-sell and up-sell. Understand which competitors are faced most often and how to win against them. Usage Accelerator Analytics Option Add-on to Sales Analytics empowers front line managers with the information needed to effectively manage their team’s usage. Removes the ambiguity and focuses users on the information they need to maintain. …add Profitability Analytics for insight into customer and product profitability Profitability Analytics Oracle Financial Services Applications (OFSA) and Oracle Business Intelligence Enterprise Edition are now completely integrated, providing financial services organization with industry leading profitability analytics delivered using the industry leading Business Intelligence platform.24
  12. 12. Service Analytics Complete Solution for Entire Service Lifecycle Service Analytics Complete analysis of the business aspect of the services organization. Includes analysis of the call center and field service business to understand the true cost to serve in a complex service business…add Oracle Contact Center Telephony Analytics for complete insight Contact Center Telephony Enables the measuring and managing of multi-channel contact center operations, key business processes and activities by providing increased operational effectiveness through detailed staffing, headcount and scheduling analysis Also provides increased business value through complete campaign and sales performance insight by agent and across customer, product, service and region.25 Marketing Analytics Complete Solution for Entire Marketing Organization Marketing Analytics Campaign Analytics - Provides Campaign Results data by Offer, Segment, Agent performance. Manager can monitor a campaign scorecard and identify root causes for shortfalls in meeting predicted goals Customer Analytics - Provides product affinity, market basket and next product purchased analysis. Provides demographic information and information on impact of customer behavior due to marketing activities. Event Analytics - Provides Analytics related to management of trade shows, customer events etc. Marketing Events Analytics can show analysis of Event registrations, expenses on supplies by vendor, region, event etc., Event ROI analysis that is fully integrated with Marketing Planning Analytics. Marketing Planning/Executive Analytics Provides Marketing Planning related information. The information is organized for different roles like Marketing Executive, Director, Finance Director. The dashboard also has a Sales Alignment page to allow Sales and Marketing Executives to co-ordinate activities26
  13. 13. Create a Customer Centric Enterprise Requirement Oracle Capability The Oracle Difference Universal Only complete repository for Provide a single source of Customer data across the enterprise truth for customer data Master for accessible by a hub & spoke Banking model Pre-built Only end to end Drive intelligent customer Customer performance & profitability interactions Analytics for analytics in context of Banking customer interactions Only complete offer & Deliver multi-channel Closed Loop campaign mgmt solution campaign & offer Marketing for with built in analytics to management Banking measure & refine marketing programs 360 Degree Customer View Only multi-channel sales, Show a complete view of Through service, marketing and customer to customer Integrated transaction solution pre- agent Banking Sales & integrated with core banking Service28 The Need for Closed-loop Marketing Consumers Demand a Richer and More Relevant Dialogue Traditional (direct and above-the-line) marketing is ‘not working’ • Average response rates for traditional direct marketing activities just 2.6%1 ‘Pray and spray’ marketing destroys relationships as well as brand value • Consumers see over 3,000 (direct/indirect) marketing messages each day. Over 60% cite over- solicitation’ as a reason to defect.2 Under Pressure for Accountability, Alignment and Proven ROI from Marketing Investments Expenditure is huge, results are unproven, processes are inefficient • Where measurable, 20% of marketing spend is wasted3 It must be accountable, for every action taken and every dollar spent • Marketers cannot calculate ROI for 40-60% of spend329
  14. 14. Closed Loop Marketing for Banking • Fact-based planning & budgeting • Open, flexible, business intelligence platform Customer & • Enterprise calendar • Powerful descriptive and predictive analytics Business • Project and content management • Pre-built dashboards, personalized access Insight • Align and optimize spending Marketing Planning & Reporting & Resource Analytics Management• Closed loop tracking• Role-based, real time analytics Manage Understand • Segmentation and targeting• Continuous learning • Campaign design and execution Customer Measure • Targeted loyalty campaigns Plan Response & Lead Execute Campaign Management Management• Multi-channel response capture Events• Collaborative lead management Management &• Integrated ROI analytics Execution • Events management • Invitation, registration, follow-up • Integrated customer-facing portal30 Closed Loop Marketing for Banking Complete Multi-Channel …with Embedded Insight Marketing Solution… & Segmentation Tools • Best-in-class marketing solution that aligns and optimizes corporate and • Complete end-to-end solution that branch marketing links strategy and planning with execution and measurement • Coordinated communications across channels and collaborative execution • Fusion of insight and action for with branches and relationship accelerated campaign execution managers and intelligent offer recommendations • Tightly integrated with channels including call center, branches, field, and partners for superior customer experience and closed-loop execution31
  15. 15. Closed Loop Marketing for Banking Deliver Multi-Channel Campaign & Offer Management Acquisition On-Boarding Retention Segment Segment Create Create Execute Execute Analyze Analyze • Define Customer • Design Multi-Stage • Initiate Campaign • Review Campaign Segments Campaign Waves Effectiveness • Slice & Dice • Attach Offers to • Monitor Campaign • Monitor Results in Segmentation Data to Campaigns Progress Real-time Refine Queries • Test Campaigns • Adjust Campaigns • Evaluate Offers • Assign Channels • Review Campaign • Compare Campaigns Calendar32 Create a Customer Centric Enterprise Requirement Oracle Capability The Oracle Difference Universal Only complete repository for Provide a single source of Customer data across the enterprise truth for customer data Master for accessible by a hub & spoke Banking model Pre-built Only end to end Drive intelligent customer Customer performance & profitability interactions Analytics for analytics in context of Banking customer interactions Only complete offer & Deliver multi-channel Closed Loop campaign mgmt solution campaign & offer Marketing for with built in analytics to management Banking measure & refine marketing programs 360 Degree Customer View Only multi-channel sales, Show a complete view of Through service, marketing and customer to customer Integrated transaction solution pre- agent Sales, Service, integrated with core banking CoreBanking34
  16. 16. 360 Degree Customer View Through Integrated Banking Sales & Service Show a Complete View of Customer to Customer Agent Agent Desktop Web Services Core Systems Single View Single View Guided Guided Opening // Opening Service Service of Customer of Customer Selling Selling Fulfillment Fulfillment Management Management • Real-time Balances • Cross-Sell/Up-sell • Multi-product • Financial Transaction • Account Details & • Sales Offers application processes Support Transaction History • Needs Analysis • Data capture • Common Service • Contact & Opportunity • Product Catalog • Document fulfillment Issue Management Management • Product Features / • Account Funding • Interaction History Benefits37 Customer Centricity Strategy Requires Front, Middle, and Back-Office Solutions Working Together Channels Branch Sales & Lending / Call Center Internet / Mobile Branch Teller Service Agency / Distr. Functions Leads & Referrals Guided Selling Origination & Fulfillment Maintenance Transactions Campaigns Needs Analysis Deposit Origination Self Service Cashboxes Offers Task User Interface Lending Origination Activities Electronic Journal Incentive Tracking Collaborative Sales Document Generation Service Management Store & Forward Consistent Customer Experience Across Channels CRM Core Components Real Time Decision Engine Workflow Engine Rules Engine Financial Transaction Engine Assignment & Routing Engine Product Configuration Engine Customer Data Integration Products Master Customer Master Service Master Marketing Master Core Banking / Product Processing38
  17. 17. Summary - Customer Centricity Strategy for Attracting & Retaining (Profitable) Customers Universal Customer • Only complete repository for data across the Master for Banking enterprise accessible by a hub & spoke model Pre-built Customer • Only end to end performance & profitability Analytics for Banking analytics in context of customer interactions Closed Loop • Only complete offer & campaign management Marketing for Banking solution with built in analytics to measure & refine marketing programs 360 Degree Customer • Only multi-channel sales, service, marketing View through Integrated and transaction solution pre-integrated with Banking Sales & Service core banking41 Agenda • Leadership in Banking • Create a Customer Centric Enterprise • Results Achieved by Oracle Customers45
  18. 18. What Customers are Achieving “Our Multi-channel Program delivered by PeopleSoft Enterprise CRM, enables every ABN AMRO Bank client to choose how and when they wish to communicate with us. This allows us to be trendsetters in our industry.” “…we saw a 29% increase in the ratio of opportunities created to the number of cashier transactions processed. We also recorded a 13% increase over that period in the ratio of actual referrals to original approaches made to customers.” Oracle’s Siebel Finance is at the heart of Robeco Bank Belgium’s strategy to manage the life cycle of the customer relationship. Account managers are managing 20% more customers each using Siebel Finance.” “In the four years since the Siebel deployment, average sales for CRM-enabled branches have increased by 71% for auto loans, 110% for mortgage lending, and 164% for credit card applications.”46 Industry Quotes “ With a highly scalable, comprehensive solution, Oracle’s Siebel CRM provides best-of-breed marketing and sales tools… Let’s face it — Oracle understands the needs of FSIs at a broad level.” “ Oracle has been kicking its game into high gear. With 22 acquisitions in 24 months, the longtime database kingpin and middleware applications player has gorged on new products and capabilities…The buying binge also have served to reinforce the companys commitment to amassing deep expertise in financial services-something not lost on clients in that industry.” “ Oracle’s acquisitions of PeopleSoft and Siebel give it a more significant footprint in business intelligence (BI), analytic applications, and performance management.” “ Oracle’s Siebel purchase should drive more value for customers through integrated business management applications, and deliver existing Oracle customers with more sophisticated CRM functionality.”47
  19. 19. The Only Complete Banking Solution Platform Processes People Customer Results Partners48 Oracle Oracle’s Banking Footprint ISV PartnersGovernance, Lifecycle Management Customer &Risk & Business Marketing Selling Originating ServicingCompliance InsightRisk Based Retail Customer External Commercial Private Wealth Mgmt Insight InterfacesDecisioning Customer Experience Customer Risk Based OFAC Pricing Call Team Order Internet CRM & Lead Financial Analytics Platform Teller Center Selling Mgmt Banking Marketing Mgmt Planning Channel CheckEconomic Internet AnalyticsCapital/RAPM Kiosk EBPP Security Client Derivative Order Entry On Call Order Banking Trading Servicing Pricing Platform Demand Center Marketing Market Product and Transaction Processors Analytics FeedsRisk Deposits Savings Deposits Cash Mgmt Loans Integration Performance MgmtManagement Mkt Data Performance Trade Management Treasury Payments Balance & Positions Operational Finance Portfolio Loans Mortgages Exec Analytics Risk Mgmt Asset Syndicated Structured Fees & Commissions Mgmt Loans Derivatives Profitability Market Risk Cards Compliance Analytics/RAPM Investments (Credit / Debit) Compensation Investor Nostro Lock Box & Limits Services Recon Funds Transfer Trade Clearing & Reconcil Credit Risk Payments Leasing Core Banking Ledger Leasing Custody Core Banking Pricing Ledger Processing Settlement -iation Operational ALM Excellence Master Data Management Customer Data Hub Product Hub Org Hierarchy Hub Accounting Hub Payments Hub Op Intelligence Fed Wire HR AnalyticsCompliance Corporate Administration SWIFT Enterprise GL Consolidation Budgeting Profitability Mgmt Incentive Comp Analytics BASEL II Platform POS & 1A Human Capital Mgmt Projects Procurement Fixed Assets Real Estate Portal & Credit Dashboards Rating AML Business Enterprise Technology Activity ACH SOX Rich Client F/W Database (Grid, Enterprise Content Web Services J2EE Services, ESB Monitoring AJAX, Web 2.0 Memory, Embed) Mgmt Orchestration (BPEL) and Rules Engine Other Business Systems Regulatory Process Reporting Systems Mgmt Directory Services Web Services Mgmt Identity Mgmt Access Mgmt Analytics
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