End-To-End Digitalisation of a Sales Process for Retail Banks

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Process Excellence & Digital Transformation
September 2014Grain Loans
3000yearsago,thefirstSavings&Loanscontractswhereprintedontablets.Claytablets.

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Bank of the Future
Thedrivetoconnectourworldusingcutting-edgetechnologiesisimmense.Thus,themanyprojectsof«BankingPointofSalesoftheFuture».
September 2014

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2012 –2014 : Present Tense.
Bankshavetensofthousandsofpointsofsales.Renewingthesebrick-and-mortarbrancheswilltaketimeandeffort!
BeingdrivenbyourBottomsLinesdoesnotfacilitatesuchatransformation.
Une
Banque
September 2014

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Digital & Operational Excellence
A Digitalized Sales Process: Opening of Account
I.What are we solving ?
II.A theoretical answer.
III.A few tricks…
IV.For a nice result !
September 2014

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What are we solving ?
First Contact between Customer and Bank.
I.It usually starts with a general discussion on products and fees.
I.Then followed by Customer’s decision to buy
•K-Y-C
•Documentations
•Signature
•First Payment
September 2014

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What are we solving ?
Did my Customer like his first encounter with our Bank ?
Satisfaction Survey
Are you satisfied ?
Were you welcome ?
Is the product good ?
Emotional state
Was the meeting fun ?
Was I ripped off ?
Am I more happy now ?
Tedious, Intrusive, Accountability
Professional, but do I trust them ?
Complexe products, unclear pricing
BANK
CUSTOMER
We can get better still
This Sales guy can get his bonus
Can we create better tailored products
PROCESS EFFICIENCY
CUSTOMER EXPERIENCE
September 2014

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Bottom line,
IsthereawaytobebothmoreFunandmoreEfficientinsuchasalesprocessofaBankaccount?
September 2014

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III.A few tricks…
September 2014

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A theoretical answer
DIGITAL
I.A Digital solution has the potential of immediatness
•It allows stakeholders to play with cutting edge technologies, giving a sense of being «fun»
•Gives the opportunity of multi-channelling
•Cost Per Act seems lighter than Paper Processes, hence generating savings
•«Geeks» are a high net worthsegment
September 2014

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Process OverviewI.Bank: KPIs do not fully measure Quality of Service
Transformation Ratio
Incompleteness Ratio
Refusal Rate
Income Per Customer•Customer: Focus on two «not fun» items
Overall “1st meeting” 2“Card in Hand” time lapse is far too long
Not enough information given during this delay
Operational –Process Efficiency
Process –Targeting Efficiency
Product Choice
KYC
Docs. (ID, payslips, etc.)
Signature
Iteration
Payment (check)
Scanning
Indexing
Study by Back-Office
Missing Documents
Refusal
Opening of Account
Acquire First Payment
(check)
Manufact. Card
September 2014

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>3
Critical analysis: Existing Account Opening process (Paper)
I.Bank: KPIs do not fully measure Quality of Service
Transformation Ratio
Incompleteness Ratio
Refusal Ratio
Income Per Customer
•Customer: Focus on two «not fun» items
Overall time-lapse is too long
Not enough information given“follow-up” incoming calls ratio<9% >22% >3,5% CSP- >3 w. >2%
K.Y.C
Docs
Sign.
Iterate
B-O
Open
Scan.
Card
Pay
Process Breakpoints
Number of Actors
Number of Tools
Number of Modus Operandi>10>8>15
September 2014

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Transforming the Bank’s Sales Process : Digital
•Simulate & Compare:
Gives a clear vision of pros and cons of each product
Funnels motivated customers, less inclined to quit mid-way
•Some Controls Points of Back-Office can be automated
Automated verifications on standard national ID documents or even Payslips.
•Full digitalization of each and every step of the Sales process
Reducing “Missing Documents” drastically
Product Simulation
KYC
Docs. (ID, payslips, etc.)
Signature
(digital)
Scanning
Indexing
Study by Back-Office
Non-Compliant Docs Documents
Refusal
Opening of Account
Acquire First Payment
(check)
Manufact. Card
KYC & Docs. (ID, payslips, etc.)
Iteration
Payment (card, transfer, PayPal)
September 2014

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What can we hope to achieve in terms of KPIs ?
I.Bank / Process Efficiency :
Number of Process Breackpoints
Transformation ratio
Incompleteness ratio
Refusal Rate
Net Income Per Customer
Number of Actors
Number of Tools
Number of Modus Operandi
•Customer / Customer Experience :
Overall time-lapse
Follow-up incoming calls ratio>3>3 w>1,8% <2~3 d<1,5% <9%>11% >23% >3,5% CSP- >10>8>15<12% <3% CSP+ -4-3=
September 2014

III.A few tricks…
September 2014

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A Few Tricks…
Electronic Signature: A difficult decision
I. What is the opinion of ourLegal Department:
Electronic Signature does not guarantee Physical Identity
Courts have not yet evolved towards this new method
II. What is the opinion of our Risk Department:
It is uncharted territory ; hence risk models are precarious
There is a Systemic Fraud Risk
III. What does our IT Departmenttalks about?
Simple Date-Stamps
Cryptographic Certificates
Vocal-Signature
Fingerprint, Retinal scan, Facial recognition, …
September 2014

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A Few Tricks…
Uploading Documents: Easy? No.
I.Bank’s rules about which document to ask to which customer- configuration, is not as clear as one might think
II.Back-Office will have to judge Conformity of documents based on photographs and pictures
I.Bank’s management of Missing Documents is not automated, and can be managed ad hoc, case-by-case
II.Hardware infrastructure of the Bank’s IT systems were not designed for so many Gb being transferred at once
September 2014

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A Few Tricks…
On-Line Payment: Traitor.
I.Regulation on First Incoming Payment is very strict.
•Texts still mention “checks” in many countries.
•There is a potential Money-Laundering issue.
•Adding a step with a «Reconciliation Account» in the middle creates new problems
September 2014

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III.A few tricks…
September 2014

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A Nice Result
Applicative Architecture
Public APP
Private APP
API
MIDDLE WARE
SOA: WEB-SERVICES (Java JEE, Scala, .NET, etc.)
INJECTION
DOCS &
SIGNATURE
UPLOAD
PAYMENT
CRM DB & DWH
EDM
CORE BANKING
September 2014
FRONT-END
WEB SITES
DOCUMENTS (PDF)

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A Nice Result
Example of a Full Smart-Phone Sales Process : “Soon” app
Mes Infos
Perso
My Identity
ok
Mes Infos
Perso
My Home
ok
Locataire
Depuis le
Mes Infos
Perso
My Income
ok
CSP
Mes Infos
Perso
Subscribe
Buy
Je souscris
Compte
Sign
Sign
Je souscris
Compte
Pay
September 2014

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A Nice Result
Back-Office Efficiency
I.Back-Office receives only Complete Account Opening Requests, moreover partially checked already
ID documents, pay slips, can be partially checked by some automated tool
Question remains on Compliance of many uploaded documents
•During working hours, Back-Office receives immediately the Customer’s Request
Back-Office becomes capable of opening the account 20 minutes after Customer’s click !
Often, the Customer has not yet left the Point of Sale, hence creating a “Wow-Effect
•Interaction with Back-Office can occur real-time, using chat
Experience shows specific training and staff is required
•Scanning & Indexing is over-with
These tasks are taken care of at the source
September 2014

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Thank you
Cédric Coiquaud
Digital Transformations –Sales Processes
September 2014

End-To-End Digitalisation of a Sales Process for Retail Banks

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