The document discusses several trends affecting the financial services industry, including increased consumer technology adoption, changing customer demographics, and the rise of digital channels. It notes that while these trends create both challenges and opportunities for financial institutions, they must address how to scale operations while maintaining high customer satisfaction, efficiently allocate resources, and incorporate new digital capabilities into their operating models. Specific initiatives discussed include using video to deliver specialized expertise remotely, a example of using video at bank branches, and Cisco's collaboration investments and productivity benefits for organizations.

1. Market Trends and
Business Drivers
Geoff King and Mike O’Keefe
Business Transformation Financial Services

2. LIC to Sell Policies Online
Is there Money in the Mobile Wallet?:
America's Greenest Banks

3. Megatrends at Work
Regulation World of “Now”
Financial
Consumer in Control Generational Shifts
Services
Transformation

4. The Consumer in Control - A Challenge &
Opportunity
• Consumer technology adoption = increased competition…
– Bankrate: 6.5 million visitors per month
– MoneyAisle: loan auctions
– Sheila’s Wheels – online insurance for women
– Tesco – Loyalty program into Financial Services
• …but also creates opportunities for FSIs:
– USAA: self-service Social
– Chase: checks via iPhone Networking
– MasterCard: “Overwhelming Offer”
Source: ABI Research, 7/10, 3/10; Chicago Tribune, 7/10

5. Changing Customer Demographics + Digital
Technologies = Multi-Channel
Home
…
Branches Mobile
Branch Contact
Customer Center

6. Channel Usage – Changing Patterns and Mix
• Industry wide average sales per branch have decreased by over 30% in recent years
while staffing levels in most branches have remained the same
• Multi-channel integration and consistency is a customer expectation
• Branches are still the preferred channel for opening new accounts, but the branch is
evolving from transaction to advisory services

7. Many Ways to Engage Customers
Self Service Offers & Promotions Online Catalog Wayfinding
Touch screen to allow users Product & Service Touch screen interaction Touch screen map with
to perform simple information, along with with “endless aisle” for shops, restaurants,
transactions and avoid teller click-to-chat interaction, information & ecommerce services for local area/ in-
wait times. store wayfinding.

8. Discussion
• Are these the drivers?
• Are there others that you are seeing / responding to?
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9. Business Challenges to
Address

10. How do we scale the organization - handle increased
transactions + maintain high Customer Satisfaction?
• More people visit Apple’s 326 stores EVERY
QUARTER than the 60 million who visited
Disney’s four biggest theme parks in ALL OF
2010
• Customers standards with regards to
experience have been set by other
industries, but Financial Services companies
are beginning to change
• One size does not fit all – branch design and
focus may need to change depending on
customers interest in particular branch
services.
• Goal is to create the experience that make
customers want to buy

11. Resource Allocation - How do we get the most
qualified resource at the right place at the right time?
Home
…
Branches Mobile
Branch Contact
Customer Center

12. Imperatives and Opportunities
• Differentiation - Drive dynamic and differentiated delivery channels -
integrated and seamless
• Speed - Fast track new / tailored products and services – innovative
solutions
• Agility - Capitalize on intelligence to manage market losses - claims,
customer data and interactions; M&A
• Leverage - Fully utilize all assets / expertise – inside and outside /
across all geographies and business lines - brands, partners,
associates, distribution networks
Operate, Transform, Grow - simultaneously

13. Digitally-Enabled Business Model
Mobility
Community
Collaboration
Video

14. Embedded Mobility/ Wireless Capabilities – Fully
Integrated into Operating model
• Improve the ability of staff to move freely
throughout the location and across the branch
network
• Reduce costs associated with maintaining
dedicated work spaces for resources
supporting multiple branches
 Dynamically join online meetings to view
shared content, view participant list and chat
 Transfer to a live Video meeting from Phone
 Offer convenient services to clients (i.e.
internet access; help with decisions
regarding investment alternatives)

15. Discussion
• How applicable are these factors to your organization / line-of
–business or function?
• How important is it to incorporate these capabilities as an
integral part of your next generation operating model?
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16. How this is playing
out?

17. Branch Video Example

18. Pilots and first phase implementations
Leveraging video to help deliver specialized expertise
: Sales Service
Mortgage/ Consumer Lending Interpretation Services
Wealth Management Debit Claims
Small Business Consumer Lending
• Significant improvements are being reported. A sampling of which are below:
o 100% customer satisfaction with the experience
o 65% increase in applications
o 10% to 15% of sessions became sales leads
o From 50% to 90% sales conversion rates
o 75% increase in products per customer

19. A Retail & Wealth Management Example –
Remote Expert at BMO
Providing Financial Advice Anytime - Anyplace

20. Cisco’s Collaboration Investment Value
Cisco FY2010 Benefits (Gross) = $1,523M
$601M $516M
Reduce
 Avoid travel Save time  Reduce travel
costs to to increase
 Reduce real estate improve  Reduce commuting
efficiency
profitability  Find people faster
Transform Speed  Find information faster
$141M
business to process to
 Scale expertise increase increase $266M
 Increase customer intimacy growth agility
 Enhance executive  Shorten sales cycle
communication  Speed time to market
 Create new  Reduce delays in
revenue streams decision making
Source: Cisco IBSG, 2011
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20

21. Cisco’s Productivity Journey
FY95 Through FY10
Web 1.0 Web 2.0
6
Total: $5.2B
5 Web 2.0
Collaboration
Benefits ($B/Yr)
Solutions:
4 $1.4B
3
Web 1.0
Internet
2 Solutions:
$3.8B
1
Information Sharing Transactions Interactions Collaboration
FY95 FY00 FY05 FY10
Source: Cisco IBSG, 2011
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21

22. Cisco’s Business-Value
Approach – Addressing
your Business Imperatives

23. Cisco Solutions for Retail Financial Services

24. Cisco’s Business Value Approach
Opportunity Proposal Proof of Implementation
Discovery
Identification Concept
100%
Identify the Invest the time to
business/technology better understand Determine a
needs that Cisco can the business need potential rollout
Jointly engage in
65% impact and technology
a PoC to
architecture
determine tech
and business
Architect and
viability of the Value Realization
Propose a joint
35% Solution
Solution to take
to Proof …
Proof of Concept/
Success Factors
15% Insights - A Mutual
Business Case –
Commitment
Correlation with
Discovery I.T Requirements
Process – Focus
5% on Business
Introduction and Imperatives
Brainstorming
0%
© 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential
#CiscoPlusCA 24

25. Discussion
• What is the most valuable role that Cisco can play to help
you to get maximum business value?
• How useful / appropriate is Cisco’s proposed holistic
approach, co-investing in opportunity discovery, and proof-of-
value pilots?
• What additional information / insights would be useful to
strategy and planning?
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26. Thank you for attending the Cisco Plus Canada conference.
Follow @CiscoCanada and join the #CiscoPlusCA conversation
Access today’s presentations at cisco.com/ca/plus