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Branch Transformation


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Presentación de Mauricio Bravo, Director de servicios profesionales de NCR para América Latina en el 16º Congreso de Tecnología para el Negocio Financiero.

Published in: Economy & Finance

Branch Transformation

  1. 1. Branch Transformation Moving to Branch 3.0 “Advice is your core competency……” NCR June 2016
  2. 2. 6/27/2016 2NCR Confidential Where, when and how will consumers use the branch in the future Smaller physical footprint More self-service consumers Exploding digital data – mobile, online, devices Fewer tellers, more digitally assisted service models More customer touch points Centralized, on- demand omnichannel analytics
  3. 3. 6/27/2016 3NCR Confidential What will investment in the branch proposition look like?
  4. 4. 6/27/2016 4NCR Confidential Key branch strategy initiatives? Merging physical and digital consumer experiences across all self-service points and channels Delivering customers the right channel with the right service offerings, available at the right time Transforming front, middle and backend business processes to maximize staff effectiveness Delivering an Omni- channel Experience Optimizing Channel Service Mix Lowering the Cost to Serve
  5. 5. 6/27/2016 5 Quadrant 1 21% REVENUE EFFICIENCY CONSUMER EXPERIENCE NCR Confidential Consumer Experience 3.0 Getting it right first time. Powering Sustainable growth. Quadrant 2 36% Quadrant 3 14% Deliver Personalized Service Deliver Retail network transformation Deliver best in class Omni channel customer journey DeliverCxProcess Mission – Be the PFI Strategy - Customer loyalty Plan Quadrant 4 29%
  6. 6. Consumer Engagement 3.0 The consumer designs your engagement model. Listen to them. 55%OF Gen X + Y customers want their banker’s F2F advice before Buying 53%OF Gen X + Y customers want to buy BOTH simple & Complex products F2F22%Higher NPS scores reported for customers who use both branch and digital FI’s want 56% of their products bought using self service digital channel40% YOY Increase in the number of CLA customers “unlikely” to buy from PFI 50% YOY Increase in the likelihood of your Gen Y customers defecting in CLA
  7. 7. 6/27/2016 7NCR Confidential Cómo serán los bancos del futuro • Los jóvenes impulsan el cambio hacia un autoservicio digital completo • 40% de las interacciones bancarias son online, (60% en países desarrollados) • ¿Cómo ser disruptivo en una de las industrias más conservadoras del mundo? • ¿Cómo mantener la innovación viva cuando las regulaciones y los requerimientos de seguridad son ineludibles? Sofía Terrile PARA LA NACION DOMINGO 24 DE ABRIL DE 2016
  8. 8. Operational Efficiency • Right size Branch P+L models • Align footprint & distribution to fit local markets • Manage compliance and risk Consumer Experience • Merge physical and virtual consumer journeys • Create differentiated, expanded service offers • Deliver human engagement option anytime, anywhere • Compete with ‘Clicks to Bricks’ from new entrants • Deliver increased revenue per member of staff • Increased household product penetration ratios • Embed customer loyalty for future purchases Grow Revenue Branch 3.0 – Evolving Drivers. Deliver Revenue & Loyalty. Efficiently.
  9. 9. 15%The Digital Conversion Ratio 85%The Face to Face Conversion Ratio 55%Call Center Conversion Ratio Human-Proactive Digital- passive Branch 3.0 – Engagement Value The power of P2P engagement.
  10. 10. Branch 3.0 – Evolving Strategy Branch is neither clicks, nor bricks, its about connecting people. Business Transformation Continuum. Branch 3.0 P2P omni channel engagement Get your people connecting with customers USD 105k pa USD 405k pa USD 436k pa Branch 1.0 & 2.0 Migrate, Right Size, re-distribute physical presence
  11. 11. NCR Cx Banking Platform Branch 3.0 - Operationalized
  12. 12. NCR Branch 3.0 Strategy. Merge Physical and Digital experiences Be everywhere. Control the sales cycle. Remote sales in Branch Remotely on the customer’s device Face to Face in the branch Remotely at the ATM Manage customer journey and workflow
  13. 13. • Remote view, track and analyse customer self service interactions in your Branch • Identify bank and non-bank customers and be prepared for interactions • Respond seamlessly to customer help requests Phase 2: • IB ‘CRM & Sales’ • European Customer project • One view portal for all disparate applications • Identify & offer personalized service based on their data • Minimal integration with maximum CRM value • As per ‘Lite’ plus access to details in customer database: - Customer profile e.g. VIP - Sales Offers • View and control up to 6 Self Service devices at once • Transaction Override capabilities • Supports withdrawal overrides and over limit • Future new transaction capabilities e.g. Bill Payment Control NCR Interactive Banker. Change the Personal Banker Model. One : Many Staffing ratio. No compromise on full branch control. 123 Sales One View
  14. 14. 66%Drop in FTE costs without loss of branch capability Source : Wells TopPerforming sales Branch in region within 90 days Source : Wells 50%Of the operating costs of a traditional branch. 1200sq ft Source : Wells Change the Metrics. Wells Fargo. NCR Interactive Banker.
  15. 15. Change the Choreography. Banco Popolare di Bari. NCR Interactive Banker.
  16. 16. Interactive Banker 6/27/2016 16
  17. 17. 17 Remote Transaction Management • Cash withdrawal & Deposit, receipt print • Check Print • Check deposit (Account split), encashment, Coin dispense • Scan ID & Validate electronic signature Account Management • Pay new, or pre-loaded bills • Inter account transfers • Instant 3rd party Transfers • Address changes, Regular payment changes • Order statements, order new cards Retail Sales Engagement • Scan and Record new ID, supporting documents • Print contracts, cover documents etc • Retail loan initiation, retail lending scoring & maintenance • Release loan funds via cash, check, pay into account, 3rd party transfers NCR Interactive Teller. Change the Teller model. One : Many Staffing ratio. Full remote control & 24 hour video engagement anywhere 123
  18. 18. 88%Increase in customer service hours Source : NAMER CU’s 40%Reduction in annual Teller salary and back office costs Source : NAMER CU’s 60%Increase in branch sales Source : NAMER CU’s 35%Increase in Member acquisition Source : NAMER CU’s 275+ NAMER CU’s. Merging Physical and Digital experiences. NCR Interactive Teller.
  19. 19. 6/27/2016 19NCR Confidential FGB Jamaica leverage Interactive Teller solution to:  Reduce Overhead – o by better management of their teller resources from a central location o by minimizing the need to physically handle notes in the branch  Expand Footprint by implementing a Hub and Spoke environment that will support customer branch fulfillment in a small footprint  Increase Customer Time and Convenience – o by deploying ITMs in locations that will be accessible outside of branch hours of operations and fulfilling customer transactions remotely o by increasing the number of “branches” available to their customers across the country o by decreasing the amount of time to perform a customer transaction (First Global Bank’s teller are required to perform multiple currency counts, deposits and withdrawals, which will be performed by the ITM with this solution)  Sales Focused branches by repurposing the existing teller resources from fulfillment to marketing and sales of bank products
  20. 20. Europe Majors. Merging Physical and Digital experiences. NCR Interactive Teller delivering efficiency, consumer experience & growth. MEA Majors. Merging Physical and Digital experiences. NCR Interactive Teller delivering efficiency, consumer experience & growth. Improve, using ENBD and others MEA Majors. Merging Physical and Digital experiences. 30 Countries and states deploying NCR Interactive Teller.
  21. 21. Brazil 6/27/2016 21
  22. 22. Europe Majors. Merging Physical and Digital experiences. NCR Interactive Teller.
  23. 23. Interactive Teller 6/27/2016 23
  24. 24. NCR Confidential 24 In-Branch Video Room or Kiosk Video allows Branches to instantly augment staff with Product & Service Experts Anywhere Integration Remote Video enables Financial Institutions to Offer Expertise from any channel as a Stand-along app or embedded in existing applications Share Screen Share Screen Customer’s own device Multi-channel solution available as a service to all digital platform Customers; combined routing with NCR Interactive Teller NCR Interactive Expert. Radicalize the Sales Expert model. Remote Assist Expert. Channel Holistic engagement across expanded hours, locations, devices.
  25. 25. NAMER CU’s. Already offering full ‘virtual banking’ in branch NCR Interactive Teller and Expert combined.
  26. 26. What’s next? Channel Holistic, Personal or virtual Engagement whenever, wherever the consumer needs it
  27. 27. What we do know. Consumers want Phygital - Be Ready. Video Teller Predictive Offer Engine Mobile Account Opening App E-receipts Video Expert Share Screen Share Screen In store banker Robo- Advisor? Advanced ATM flows
  28. 28. Transform your Retail ‘Branch’ Banking Proposition. • Fully Integrate Staff within the Omni Channel consumer journey • Merge physical and digital consumer experiences • Dominate the Consumer buying and loyalty cycle
  29. 29. Branch 3.0 Driver. Branch is neither clicks, nor bricks, its about connecting people. Migrate, Right size & re-distribute Physical Right Sizing & Re-distribution delivers physical presence, manageable operating costs. But Bricks, mortar and location do not constitute Cx, or growth alone Business Transformation Continuum. Now its time to merge the physical and digital experiences Transform Engagement • Your customers want to engage with staff • Create Pro-active, quantifiable, growth • Give them new tools to reach & engage with customers, replicating branch, where & when customers prefer to do business Branch1.0&2.0Branch3.0