The document discusses the concept of omnichannel banking, emphasizing the need to embed banking services into consumer daily lives through multi-channel strategies. It outlines the importance of data integration, customer insights, and technology as foundational elements for banks to enhance customer experiences and drive growth. Additionally, it highlights the necessity for C-suite accountability and collaboration to evolve operational models for effective implementation of omnichannel strategies.

2. Omnichannel Banking
Embedding Banking in Consumers’ Daily Lives
Presented by: Marcia Tal

3. It’s Like Being There.
Listen to the Recorded Presentation Now.
Marcia Tal delivered the original version of her presentation – “Omnichannel Banking:
Embedding Banking in Consumer’s Daily Lives” – in June 2013 as Lead Faculty for the
International Institute for Analytics (Banking Analytics Research Council).
Following the more recent publication of her Tal Solutions white paper on the same
topic, Tal updated and expanded the slide presentation and added audio narration.
Video
If you want to hear her detailed and informative narration,
click through to the video from the next slide.
Slides
To read the slide presentation here, just click through the slides as usual.

4. Where We Were
• Before Multi-channel and Omnichannel...
• We could only interact with customers at the branch or call center.
• In the 1990s, I listened to call center conversations to better
understand customer needs.
• We uncovered opportunities for growth in call center interactions.

5. Where We Are Now
• Multi-dimensional analysis enables timely and relevant
product and service offerings.
• Omnichannel banking experience will deliver many opportunities.
• Learn from looking at Omnichannel retailing.
• Aim to embed banking into consumers’ daily lives.

6. Where We Need To Go
In January 2014, BBC reported Barclay’s stated:
“We have consistently been clear that over time, there will be fewer
and fewer traditional branches as we move to provide banking services
to customers where and when they find it most convenient.”

7. Background
• Customers are driving how and when they interact with their bank.
• Data integration across channels and touch points is critical to
providing an omnichannel environment.
• Understanding customer intentions and uncovering insights is core
to the “next generation” of customer experiences.
• Dynamic technology capabilities are transforming the industry.

8. Industry Context
“Retail Banks are facing mounting pressure to execute broader
channel diversification strategies aimed at widening the bank’s
customer base, improving customer experience, and increasing
revenues through new products and services.”
Executing an omnichannel banking strategy will enable banks to provide relevant and
timely offers that deepen existing customer relationships as well as create new ones.

9. Importance of Omnichannel
Incorporating customer
choices & behaviors
contributes to profitable
growth (new customer
acquisition, retention of
engaged customers & an
improved portfolio profile).
Retail has already
demonstrated profitable
outcomes (increased basket
size, greater conversion
rates & reduction of
inventory losses).
PROVEN
STRATEGIC
VALUE:
Seamlessly integrated
customer experiences
Cross-functional
collaboration
C-SUITE
EXECUTIVES
AND
OPERATIONAL
MODELS MUST
EVOLVE TOWARD:

10. Vision to Reality
• Expanding Access to information & insights
• Refined models and strategies for Attracting New Target Segments
• Expanding “Eligible Universe” through specialized analytics
methods and integrated data sources
• Real-time models that incorporate previous and current choices and
behaviors for Deepening Customer Relationship

11. Building an Integrated Strategy
Strategic Elements
Foundational Elements

12. Building an Integrated Strategy
Performance Tracking
Building a 360° View of Customer
Enabling Cross-Functional Collaboration
Ensuring C-Suite Accountability
Implementing a Business Mandate
Roadmap for
Successfully
Achieving an
Omnichannel
Banking
Experience
Necessary
Foundational
Elements
STRATEGICELEMENTS
FOUNDATIONAL ELEMENTS
Data Technology Analytics
Integrated
Marketing
Management
Operations

13. Strategic Elements
• Business Mandate — broad communication from the CEO
• C-Suite Accountability — translate business mandate into
organizational accountability
• Cross-Functional Collaboration — create the capabilities integral to the
omnichannel banking experience; realize business mandate
• 360° View of Customer — fuel analytic models to create new offers
• Performance Tracking — measure progress and maintain accountability

14. Foundational Elements
• Data: What data sources need to be integrated in order to have a holistic
view of the customer?
• Technology: What technology tools enable data from different
environments to be shared and integrated into different customer
facing systems?
• Analytics: What analytic techniques and skills are required at each step
of the process to efficiently identify customer’s emotions, intent and
behaviors? How to predict the “next best product offer” to improve the
customer experience?
• Integrated Marketing Management: How do I utilize “hot” lists, new
sources of information and analytic insights to accelerate speed to market?
• Operations: How do I prepare my customer facing employees with the
tools, data and training to support business initiatives that impact the
customer experience and overall business strategy?

15. Data
CONVERSATIONS
social media
customer call center
online chat
INDIVIDUAL
Unique
Customer
Identifier
BEHAVIOR
internal data
external data
INTERACTIONS
transactions data
location data

16. Technology
Is transforming the interaction model between consumers and banks &
allows for more effective engagements
3
2.3
1.9 1.8
90%
87%
84%
76%
65%
70%
75%
80%
85%
90%
95%
0
0.5
1
1.5
2
2.5
3
3.5
EARLY
ADOPTER
EARLY
MAJORITY
LATE
MAJORITY
LAGGARD
Avg monthly visits to branch % of virtual visitors
Source: Cisco IBSG, June 2012
The increase in channels has resulted in an increase in customer interactions.

17. Technology
Mobile — embedded in consumers’ daily lives
By 2017, more than
1 billion mobile phone
users will have used
their mobile device for
banking purposes.
(Compared to 590 million
users this year.)
DATA
SOURCE
CHANNEL
PLATFORM
REVENUE GENERATOR
COST PLAY

18. Analytics
Product Usage Customer Voice
Creditworthiness Keyboard Strokes
Psychographics Online Conversation
Geography Blog Networks
Demographics Peer Review
Wealth Customer Survey
DATA
ELEMENTS
Customer Segmentation Unstructured Data Analytics
Propensity Modeling Sentiment Analysis
Offer Optimization Integrated Analytics Data Marts
Performance Evaluation Integrated Client Service Platforms
Client/Segment P&L Statement Digital, Voice and Text Data Mining
Compensation Modeling Pattern Recognition Evolution
ANALYTIC
APPLICATIONS
EVOLUTION OF ANALYTIC CAPABILITIES
ESTABLISHED NEW ENTRANT

19. Analytics
CASE STUDY: THE POTENTIAL OF SEGMENTATION
Client: Global Consumer Franchise
Business Problem: Improve inbound sales process through more targeted offer strategies,
reporting and measurement.
Solution: Integrated data models, segmentation, predictive models and tracking into call
center process. The design and implementation of sales palette optimization tools prompted
phone offers to offer customers products based on propensity modeling and economic
returns. Leveraged real time triggers to optimize channel selection.
Methodology: The integrated operational and customer analytic infrastructure relied on:
• Data integration management
• Rapid cycle prototyping
• Segmentation and targeting
• Process design and redesign
• P&L forecasting and tracking utilizing
dashboards and MIS
Data Elements: Product usage • Credit worthiness • Demographics • Customer Voice •
Customer Survey
Analytic Applications: Customer Segmentation • Propensity Modeling • Offer Optimization •
Compensation Modeling • Profit and Loss forecasting • Integrated Data Marts • Integrated
Client Service Platforms
Value: The offers generated 4x higher acceptance rates and 20% higher Net Present Value.

20. Integrated Marketing Management
• Understand the customer
• Make smarter marketing decisions
• Accelerate time to market
• Improve customer profitability and customer experience
• Lower the cost of marketing execution
• Improve marketing self-sufficiency and agility

21. Operations
Banks must empower their customer-facing employees with the
tools, platforms, information, training and incentives that ensure
a customer-centric culture.

22. Highlights
• Understanding customer intentions and uncovering insights
through advanced analytic techniques is core to the design of
“next generation” customer experiences.
• “Listening” to customers requires integrating data, technology,
analytics, marketing and operations – the foundational elements
of omnichannel banking.
• To fully realize the potential of omnichannel, C-suite executives
and operational models must evolve.

23. THANK YOU!
Visit www.talsolutions.com/omnichannel
for Marcia Tal’s full research report.
Tal Solutions
Marcia Tal, Founder
347-478-5194
Talsolutions.com
Highlights
• Understanding customer intentions and uncovering insights
through advanced analytic techniques is core to the design of
“next generation” customer experiences.
• “Listening” to customers requires integrating data, technology,
analytics, marketing and operations – the foundational elements
of omnichannel banking.
• To fully realize the potential of omnichannel, C-suite executives
and operational models must evolve.