Retail Banking Call Center Case

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Retail Banking Call Center Case Nino
Masurashvili Deputy General Director 17 May, 2007
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Content

• General Overview
• Trends in Georgian Retail Banking System
• Why Retail is Interesting for Banks
• KEY Success Factors for TBC
• Telephone Banking through Call-Center

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GENERAL OVERVIEW

• Total population 4.56 mln
• Population in 18 65 age group 2.13 mln (47)
• Population in Tbilisi 18 65 age group - 0.7 mln
  
• Total Consumer Loan Stock per capita (including
  mortgages) Gel 171 (End of 2006)
• Cards penetration (estimated, IQ, 2007) - 21
• Consumer loans / GDP 5.7 (End of 2006)
• Retail Deposits / GDP 8 (End of 2006)

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Tbilisi population according to income(Research
conducted via telephone 3908 intervewees)

• Tbilisi population 715,000 (age group 18 65)

Source IPM Research
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Banking Products Users
Tbilisi population 715,000 (age group 18 65)
Source IPM Research
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Average Number of Bank Used

• On average - using services of 1.4 Bank

Source IPM Research
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Parameters when choosing a bank
Source IPM Research
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Why Retail is Interesting for Banks

• More retail clients are entering the category
• Higher margins and possibility to earn fee
  income
• High growth potential
• Huge potential for new products
• Greater diversification resulted in risk
  minimization

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Opportunities for banks to satisfy the demand of
the Georgian population

• High demand on mortgage loans
• The boom on housing construction
• Prices steadily goes up
• Traditions change, young families buy the houses
• High demand on consumer loans and installments
• Furniture, cars, travel, education, home
  remodeling
• High volume of cash in population
• Increase of term-deposits
• Increase balances on current and savings
  accounts
• Companies tend to disburse salaries on cards
  accounts, trying to reduce cash-operations
• Trendy increase of demand on insurance products

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Competitive Banks
80 assets - in 5 banks
Market Shares in Assets
81 deposits - in 5 banks
Market Shares in Deposits
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KEY Success Factors for TBC

• Innovative product strategy
• Effective multi-channel delivery system
• Developed Retail sales system
• Appropriate branding and marketing communication
  strategy
• State of art Risk Management Systems

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Retail Banking Marketing Model
Deliver unique experience
Offer best products from accross TBC and
third-parties
Provide value-based distribution and servicing
channels
TBC Bank Branches and Service Centers
I am confident in competence of TBCs employees
Customer Tailored Products
Quality Service
ATM Network
I feel free to ask any expert and I am sure that
I will get best financial assistance
Easy and fast procedures
Call - Center
I can use TBC bank expertise and knowledge in my
interest to achieve best results
Personalized service and advice
Internet Banking
Web Site
Point of Sales Area
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Distribution Channels
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Call-Center New model in TBC
Telephone Operators were located in each Branch
Centrilized Call-Center
Managed as a project March 2006 December
2006 Created as a department January 2007 Number
of staff 43 1 Head, 4 Group Leaders, 31 Day
shift, 6 Night shift, 1 Back Office Manager

• Different numbers per branches
• Inproper distribution of calls
• Minor services through call-center
• Operators only divert the calls
• Demotivated staff

• Alcatel system
• Changes to bank programs
• Training of the staff
• Banking products
• Sales training
• Service Skills training
• Motivation Schemes
• Service Standards
• Sales Plans

• One number 27 27 27
• Inbound and outbound calls
• Primary target service channel
• Hot line
• Cross-selling and upselling
• Sales promotions

• Aim
• Increase customer satisfaction
• Divert customers to new remote service
• Create new sales channel

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Call Center Offered Services
Call Center located in Tbilisi created to improve
service quality and widen sales channels for TBC
27 27 27

• Serves individuals and corporates
• Offeres all services except for cash
• Consulting on all banking services
• Transfers
• Foreign exchange
• Utility payments
• Problem solving
• Credit repayments
• Deposits opening
• Registering on remote services
• Internet-banking,
• direct debit
• sms service
• Applications
• Credit
• Plastic Cards

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Call Center - Results

• Number of calls 3,000 per day
• Before Call Center was created February 2006
  Served - 60
• After Call Center was created February 2007
  Served - 92
• Percent of calls served without diverting
• Before Call Center was created February 2006
  20
• After Call Center was created February 2006
  80.5
• March 2007 81.4
• April 2007 81.7
• Full-scale Call-Center launched in May 5, 2007
• Number of transactions 119
• Number of products sold 250

• Future Plans
• 24 hour Service from June 1
• Serving regional branches from 2008
• More emphisize on sales
• Adding more products AVR, etc

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• THANK YOU