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Presented by:Michael HuiE: mhthui@gmail.com                      28 June 2011
Framing the OpportunityRe-Framing the OpportunityAre you still looking for customersThe value creation is in the heartThe ...
By the Numbers…  Number of Branches  Market Capitalisation  Total Asset Size  Cost Savings Opportunities  “Rightsizing” of...
By the Heart…   Customers       Do I get better service?       Is it more convenient, more efficient because the bank is b...
What if you viewed the merger of 2 banks as a merger of   customers and staff…first   Are you appreciating your existing c...
Whether in Banking or any business, do you havecustomers or just names, if you don’t knowanything about them?The basis of ...
In merging banks, you have 2 sets of customers,existing customers and the “new” customersThere is the opportunity to creat...
Do you know the quality of the customer data inthe bank that is being merged?Do you know how many of those customers alsoc...
All organisations are repository of large amounts ofdata…too much in factUsing Analytical tools will help you make sense o...
Some basics: 1. What is the level of data qualityand completeness? 2. Who is responsible for“returned mail”?Do you have a ...
The customer base is the crown jewel in a business. Thequestion is, is it a piece of coal or a diamond.Do you have a team ...
The future is nothing like the past because ofadvances in consumer technology.How do you embrace Web 2.0?How does the busi...
Thank youMichael HuiE: mhthui@gmail.comM: +6012 2956739
The Crucial Role of Analytics to Maximise Value Creation when Banks Consolidate
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The Crucial Role of Analytics to Maximise Value Creation when Banks Consolidate

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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

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The Crucial Role of Analytics to Maximise Value Creation when Banks Consolidate

  1. 1. Presented by:Michael HuiE: mhthui@gmail.com 28 June 2011
  2. 2. Framing the OpportunityRe-Framing the OpportunityAre you still looking for customersThe value creation is in the heartThe answer is the questionTargeting a segment of oneFood for thoughtSummary & ActionsFinal Thoughts
  3. 3. By the Numbers… Number of Branches Market Capitalisation Total Asset Size Cost Savings Opportunities “Rightsizing” of StaffThe traditional logic of a merger or inorganic growththrough acquisition is about scale, size, economies andefficiencies of scale….it is about what is measurable..it isabout benchmarking.
  4. 4. 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, onstaff, on morale…that affects customer service
  5. 5. 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 opportunityThis is not to say that the traditional metrics are not relevant,but does this dimension have equal consideration?
  6. 6. Whether in Banking or any business, do you havecustomers or just names, if you don’t knowanything about them?The basis of building customer insight is knowingyour customer, and the most basic building block iscomplete, up-to-date customer dataData > Information > Insight > Distinctive CustomerExperience
  7. 7. In merging banks, you have 2 sets of customers,existing customers and the “new” customersThere is the opportunity to create an emotionalconnection with both sets…But to do that you need to know yourcustomers
  8. 8. Do you know the quality of the customer data inthe bank that is being merged?Do you know how many of those customers alsocurrently bank with you?Is understanding and trying to get these customerinsights as important as all the other activities…Is our organisational culture, i.e., “the way we dothings” truly customer centric, or just paying lipservice
  9. 9. All organisations are repository of large amounts ofdata…too much in factUsing Analytical tools will help you make sense of thatdata, and in correlations and permutations that will giveyou new insightsHere is the challenge, many of your customers aremultibanked; therefore these customers data also residewith your competitiors.Getting the insight is not good enough; what you do withit makes all the difference.While a “segment of one” might be an utopia, who isfurther down that road?
  10. 10. Some basics: 1. What is the level of data qualityand completeness? 2. Who is responsible for“returned mail”?Do you have a Business Social Media strategy toexecute the insights and have that one-to-onepurposeful 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 onegoes, or all stay, or all close? – Hint: Analytics
  11. 11. The customer base is the crown jewel in a business. Thequestion is, is it a piece of coal or a diamond.Do you have a team of people working on this veryimportant crown jewel – your customer database?Customers are engaging and proactive, and the internetempowering. How do you engage with themIf you are the lead bank in the consolidation, what wouldyou want to do with the other bank’s customer data baseto create a distinctive customer experience forthem…and for your existing customers?
  12. 12. The future is nothing like the past because ofadvances in consumer technology.How do you embrace Web 2.0?How does the business model for Banks change in amulti-channel “interactive”, “real time”, “on-demand” worldYour customers are also customers of yourcompetitorsHow do you engage with your customers at anemotional level when everything is moving so fast?
  13. 13. Thank youMichael HuiE: mhthui@gmail.comM: +6012 2956739

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