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New contours for bank branches


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New contours for bank branches

  1. 1. New Contours for Bank Branches as customers get digitally savvy© 2011 Wipro Ltd - Confidential
  2. 2. Agenda 1 Changing Trends in the Banking Industry 2 Survey by Knowledge@Wharton and Wipro 3 Survey Findings 4 The Wipro View2 © 2009 Wipro Ltd - Confidential 2011 © 2010 Wipro Ltd - Confidential
  3. 3. Changing Trends in the Banking Industry3 © 2011 Wipro Ltd - Confidential
  4. 4. Changing trends in the banking industry Emerging class of customers are becoming more digitally savvy Demand on bank branches to move beyond conventional functions SMBs beginning to use bank branches for sophisticated financial advice, support and products Emergence of business models to cater to increasingly technical demands of the new brand of digitally savvy customers4 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  5. 5. Survey by Knowledge@Wharton and Wipro5 © 2011 Wipro Ltd - Confidential
  6. 6. Objective and Respondent profile Knowlegde@Wharton and Wipro conducted in the U.S. and India to captures the emerging business models for bank branches Surveyed respondents 44% 766 total respondents India, Europe, Middle East, Africa, South/Central America , other 56% countries in Asia6 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  7. 7. Survey Findings7 © 2011 Wipro Ltd - Confidential
  8. 8. Survey Findings Transactions performed in branch: U.S Vs. Ind. Use of Banking Channels: Degree of Comfort • 75% of Indian respondents • ATM usage trends among Indian required personal contact with and U.S. respondents were similar financial experts as compared to with 82% and 83% of them using 44% of U.S. respondents ATMs respectively • 62% Indian respondents say they • 89% U.S. respondents used use a bank branch, while 82% if U.S. internet banking whereas the respondents use a bank branch. corresponding % was only 67% among Indian respondents.8 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  9. 9. Relevance of Bank Branches Bank branches expected to remain relevant in the near future. However, due to increasing networking and inter-connectedness, customer engagement models will undergo significant transformation with the rise of digitally savvy customers Transactions getting digitized (Internet Banking, Mobile Banking) and are becoming increasingly popular but customers prefer direct branch contact for important transactions. With growing importance of digital media, branches will focus on sales and advisory services and move away from servicing. Bank branches need to invest in technology up gradation to re- envision how services are provided.9 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  10. 10. Touch Points for Digitally Savvy Customers Information Services Interactive solutions with touch point screens, Wi-Fi, interactive video kiosks, iPad desks Account servicing Self-service or assisted-self-service to reduce service delivery costs SME Needs and Financial Counseling Integrating sales, CRM, business intelligence and core systems Trend Smart phones will increase usage of social media for product marketing and campaigns10 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  11. 11. Customer services – Experiences Idea of floating financial advisors using iPad-like mobile tools in branch peak Current Branch Experience hours 9 9 Good Good 22 43 Excellent 22 43 Excellent Do not care Do not Care Bad Bad 25 25 • Respondents said they were comfortable • 43% respondents said their branch experience using self-service tools only if they were was good but could be improved. This is user friendly attributed to customer service shortcomings • Heavy dependency (41% of total • This can be improved by better customer respondents) still depend on bank communication, efficiency gains through branches for customer service process upgrades and training11 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  12. 12. The Wipro View12 © 2011 Wipro Ltd - Confidential
  13. 13. Wipro’s Service Delivery Model Transaction Value- Transaction Types Channel Technology vs. Value Ideal Service Model Chain Sales Branch, Internet Low tech – High Value Assisted Self Service Low-Complex Originations High-Complex Originations New Customers Advisory Branch Low tech – High Value Assisted Advice Financial Planning Portfolio Management Servicing: Transaction Internet, Branch, High tech – Low Value Self Service Based Customer Servicing Mobile, Call Assisted Self Service (Products & Accounts center Servicing: Information Internet, Branch Low tech – Low Value Self Service Based Product and Services Information Servicing Resolutions Branch, Call Low tech – Low Value Assisted Complaints Centre Exceptions13 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  14. 14. Finding the right Service Delivery Model The sales function at banks lends itself to Transaction-based services for customer delivery at both branches and over the accounts or financial products could be Internet, with either assisted service or rendered through a variety of channels: assisted self-service. These are low-tech branches, call centers, the Internet and models, but offer high value mobile banking Information about products and services Services such as resolving customer could be provided at both branches and complaints can be provided at both over the Internet in self-service models. branches and through call centers in This is both low-tech and offers low value assisted-service models14 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  15. 15. Future steps in Branch Banking – Key Takeaways  “Mobile wallet” popular among low-income group and small-vendor community as it offers facility of managing micropayments on handsets  Social media will facilitate flagging customer needs quicker than conventional methods  Physical size of banks will shrink to save infrastructure, capital and running expenses  Branches will have more automation and integration by enabling self-service or assisted self-service  Bank branches to focus on revenue generation by cross-selling financial products and integrating business intelligence with branch-level and customer relationship management (CRM) solutions  Leveraging virtual technology to access pools of SME customers for multiple locations  Data sources to be brought together at the individual level through analytics:  Usage of analytics to better understand needs of digital customers  Customer transaction records can be mined for insights  Identifying right products for customers based on demographic profile and peer group buying behaviour15 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  16. 16. For more details please visit the link below © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  17. 17. About Wipro Council of Industry Research Wipro set up the Council for Industry Research, comprised of domain and technology experts from the organization, to address the needs of customers. It specifically surveys innovative strategies that will help customers gain competitive advantage in the market. The Council, in collaboration with leading academic institutions and industry bodies, studies market trends to help equip organizations with insights to facilitate their IT and business strategies. For more information on the Research Council visit or mail wipro.insights@wipro.com17 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  18. 18. About Wipro Technologies Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology” – helping clients create successful and adaptive businesses. A company recognised globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability, Wipro Technologies has over120,000 employees and clients across 54 countries. For more information, please visit www.wipro.com18 © 2011 Wipro Ltd - Confidential © 2010 Wipro Ltd - Confidential
  19. 19. Thank you© Wipro Limited, 2011. All rights reserved.For more information visit www.wipro.comNo part of this document may be reproduced in whole or in part without the written permission of the authors.Wipro is not liable for any business outcome based on the views presented in this document. For specificimplementation clients should take advise from their client engagement manager. © 2011 Wipro Ltd - Confidential