Visit http://www.sas.com/baexchange The Crucial Role of Analytics to Maximise Value Creation when Banks Consolidate, presented by Michael Hui, former Head of Wealth Management, Royal Bank of Scotland Berhad

1. Presented by:
Michael Hui
E: mhthui@gmail.com
28 June 2011

3. Framing the Opportunity
Re-Framing the Opportunity
Are you still looking for customers
The value creation is in the heart
The answer is the question
Targeting a segment of one
Food for thought
Summary & Actions
Final Thoughts

4. By the Numbers…
Number of Branches
Market Capitalisation
Total Asset Size
Cost Savings Opportunities
“Rightsizing” of Staff
The traditional logic of a merger or inorganic growth
through acquisition is about scale, size, economies and
efficiencies of scale….it is about what is measurable..it is
about benchmarking.

5. By the Heart…
Customers
Do I get better service?
Is it more convenient, more efficient because the bank is bigger?
Will my overall experience be better?
Customers are far more engaging and proactive
Staff
What happens to the informal organisational structure
Is it headcount or “heart count” - connectivity (Avatar)
How do I get things done for my customers, who are far more proactive
and engaging?
Less discussed are the non-measurables, the impact on customers, on
staff, on morale…that affects customer service

6. What if you viewed the merger of 2 banks as a merger of
customers and staff…first
Are you appreciating your existing customers as you
welcome your new customers
What if you viewed the consolidation not so much from a
cost savings perspective but from a value creation
opportunity
This is not to say that the traditional metrics are not relevant,
but does this dimension have equal consideration?

7. Whether in Banking or any business, do you have
customers or just names, if you don’t know
anything about them?
The basis of building customer insight is knowing
your customer, and the most basic building block is
complete, up-to-date customer data
Data > Information > Insight > Distinctive Customer
Experience

8. In merging banks, you have 2 sets of customers,
existing customers and the “new” customers
There is the opportunity to create an emotional
connection with both sets…
But to do that you need to know your
customers

9. Do you know the quality of the customer data in
the bank that is being merged?
Do you know how many of those customers also
currently bank with you?
Is understanding and trying to get these customer
insights as important as all the other activities…
Is our organisational culture, i.e., “the way we do
things” truly customer centric, or just paying lip
service

10. All organisations are repository of large amounts of
data…too much in fact
Using Analytical tools will help you make sense of that
data, and in correlations and permutations that will give
you new insights
Here is the challenge, many of your customers are
multibanked; therefore these customers data also reside
with your competitiors.
Getting the insight is not good enough; what you do with
it makes all the difference.
While a “segment of one” might be an utopia, who is
further down that road?

11. Some basics: 1. What is the level of data quality
and completeness? 2. Who is responsible for
“returned mail”?
Do you have a Business Social Media strategy to
execute the insights and have that one-to-one
purposeful dialogue/interaction
Where in the “real time” spectrum are you?
If there is a duplication of branches in a location,
how do you decide which one stays, which one
goes, or all stay, or all close? – Hint: Analytics

12. The customer base is the crown jewel in a business. The
question is, is it a piece of coal or a diamond.
Do you have a team of people working on this very
important crown jewel – your customer database?
Customers are engaging and proactive, and the internet
empowering. How do you engage with them
If you are the lead bank in the consolidation, what would
you want to do with the other bank’s customer data base
to create a distinctive customer experience for
them…and for your existing customers?

13. The future is nothing like the past because of
advances in consumer technology.
How do you embrace Web 2.0?
How does the business model for Banks change in a
multi-channel “interactive”, “real time”, “on-
demand” world
Your customers are also customers of your
competitors
How do you engage with your customers at an
emotional level when everything is moving so fast?

14. Thank you
Michael Hui
E: mhthui@gmail.com
M: +6012 2956739