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Wells Fargo Online


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Wells Fargo Online

  1. 1. WELLS FARGO ONLINE FINANCIAL SERVICES ARKANSAS | STATE | UNIVERSITY INSTRUCTOR: DR. KELLY FISH Cherith Minnis Gerri McCann Amer Dalain Saif-ul Chowdhury Management of Electronic Commerce MIS 6453 9 th June 2005
  2. 2. WELLS FARGO ONLINE FINANCIAL SERVICES BUSINESS MODEL Value Cluster Resource System Market Space Offering Financial Model
  3. 3. WELLS FARGO OFS BUSINESS MODEL Value Proposition / Cluster Target Segments Key Benefits Offered Unique Capabilities Value Proposition 38 Years Old Household Income 75k-100k Heavy Borrower Carry High Balance Online Account Access and Bill Pay, Transfer Funds Conduct Stock and Bond Trades 24/7 Service Hours Tech-Support, Phone-Support, and Email-Agent First e-Banking Products Internet and Branch Banking Nontraditional Delivery Channels Excellent Customer Service <ul><li>Wells Fargo OFS Provides Innovative Banking, Focusing on Creating a Customer Driven Convenient Service </li></ul>
  4. 4. Wells Fargo Online Banking Process <ul><li>NEED RECOGNITION </li></ul><ul><li>PRODUCTS PLANS & OFFERINGS </li></ul><ul><li>PURCHASE DECISIONS </li></ul><ul><li>POST-SALE SUPPORT </li></ul><ul><li>EDUCATION ON BANKING </li></ul><ul><li>Education </li></ul><ul><li>Using Quick Books </li></ul><ul><li>Employee benefits </li></ul><ul><li>Tools & Calculators </li></ul><ul><li>New Business </li></ul>Ideas and Information <ul><li>Product fees </li></ul><ul><li>Product description </li></ul><ul><li>Services availability and timeliness </li></ul><ul><li>Online and Paper Monthly Statement </li></ul><ul><li>Email/Phone Service </li></ul><ul><li>Budgeting </li></ul><ul><li>Important of Savings </li></ul><ul><li>Maintain Good Credit </li></ul><ul><li>Investment </li></ul><ul><li>Start Small Business </li></ul><ul><li>Banking </li></ul><ul><li>Loans & Credit </li></ul><ul><li>Investment </li></ul><ul><li>Insurance </li></ul><ul><li>Financial Planning </li></ul><ul><li>Business Solutions & Services </li></ul><ul><li>EVALUATION OF ALTERNATIVES </li></ul>Offerings <ul><li>Transaction Sites </li></ul><ul><li>Online Security </li></ul><ul><li>24 / 7 Hours Service </li></ul>Online / Market Space Offering WELLS FARGO OFS Egg Diagram <ul><li>A/C Review </li></ul><ul><li>Bill Pay & Funds Transfer </li></ul><ul><li>Stocks and Bonds </li></ul><ul><li>Credit & Borrowing </li></ul><ul><li>Insurance </li></ul>
  5. 5. Education Insurance Partner Life Business Auto & Home Lower Cost & Service Technology Email Agent, Tech Support Call Centers Online Knowledge Loan Products Banking Products Investment Products Online & Branch Access Pioneer in Online Banking Multiple Contact Points Stores Branches Online Telephone Innovative Customer Service Safety New Product Lines Cost Management Acquisition 24 / 7 Hours WELLS FARGO OFS Resource System Customer Service Security = Core Benefits = Capabilities = Activities & Assets
  6. 6. WELLS FARGO OFS Financial / Revenue Model <ul><li>Transaction Fees </li></ul><ul><li>Third-Party Alliances </li></ul><ul><li>Rate of Returns on Loan </li></ul>
  7. 7. BALANCED SCORECARD Why the OFS needed a Balanced Scorecard ? Traditional Financial Measures Mislead Strategy Balance Between Finance, Operations, Human Resources, and Growth
  8. 8. BALANCED SCORECARD How the Balanced Scorecard Changed the Culture in Wells Fargo ? Measurable and Manageable Strategy Focus on Maintaining Skilled Human Resources
  9. 9. BALANCED SCORECARD How the Balanced Scorecard Helped to Communicate Strategy ? Aligning All Actions to Goals and Placing Limitation on Measures Measurement Utilized to Achieve Goals
  10. 10. BALANCED SCORECARD Increase Revenue per Customer Learning & Growth Focus Profitable Modules Squeeze/Shutdown Burden Modules Reduce Transaction Errors Increase Security Value Proposition <ul><li>More Services Thru One Delivery </li></ul><ul><li>Cost of Delivery Remain Fixed </li></ul><ul><li>Facilitate Purchase </li></ul><ul><li>Promote Up sell </li></ul>MAXIMIZE PROFIT Enhanced OFS Internal Customer Financial Increase Functionality Continue Dev. Deploy Scorecard
  11. 11. Objectives and Measures Increase Revenue per Customer - Percentage of erroneous transaction - Average cost of fixing and error - Number of human errors per month Reduce Transaction Errors Internal Process -Average number of transaction performed per session/call More Services Via One Delivery Customer -Number of services purchased by an average customer -Revenue per transaction -Cost of transaction Revenue per Customer Financial Measures Objectives BSC Perspective
  12. 12. BALANCED SCORECARD Reduce Cost per Customer Expand E-Options Customer Acquisition Via Mergers Automated Call Centers Increase Agent’s Productivity Value Proposition <ul><li>Online Enrollment </li></ul><ul><li>Making Banking Convenient </li></ul><ul><li>Offer Better Services </li></ul>REDUCE COST Learning & Growth Internal Customer Financial Enhanced OFS Increase Functionality Continue Dev. Deploy Scorecard
  13. 13. Objectives and Measures Reduce Cost per Customer -The percentage of services that are automated among all services. - Number of Customer representatives Automating the Call Center Internal Process - The percentage of transactions / services performed online among all transaction/services. - Transaction time Convenient Services Customer -Cost Per Transaction -Cost per service call -Call length -Numbers of service call Cost per Customer Financial Measures Objectives BSC Perspective