Bank of Ireland Presentation to Mr' Fisher

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Bank of Ireland Presentation to Mr. Fisher IS
556 Class
IS556 Project Management
Prepared by Anup Bhattarai Tom
Niedzielak Jeremy Bird Vipapak Limprana Thomas
Pinkowski May 20, 2004
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Overview

• Company Background
• Recent Company Initiatives
• New Internet Initiatives
• Issues and concerns
• Discussion
• Conclusion

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Company Background

• Bank of Ireland (BOI)
• Established by public subscription under Royal
  charter in 1783.
• Over 200 years BOI has been key institution in
  the Irish Financial System.
• Until 1942, BOI was both a commercial bank and
  banker to the government.
• When becoming strictly a commercial bank, BOI
  grew rapidly in
• Originally through the Home Market
• By Acquisitions

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Company Background

• BOI Strategic Acquisitions and Growth
• In 1958 acquired Hibernian Bank.
• In 1960 established an installment credit
  subsidiary.
• In 1966 completed purchase of Irish offices of
  National Bank and established a merchant banking
  subsidiary.
• In the 1970 expanded into international
  activities
• In 1971 opened small office in New York City,
  which blossomed into a full-service corporate
  branch.
• In 1972 opened a city office in London, which
  grew into a network of retail branches in the
  United Kingdom (by 1998 consisted of 28).
• In 1974 opened a Frankfurt branch.
• In 1989 opened a Tokyo office.

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Company Background

• BOI Strategic Acquisitions and Growth
• In the 1980s broaden their products and
  services
• Acquired a building society, ICS Building
  Society.
• Formed a life assurance company, Lifetime.
• Acquired Irelands leading stockbroker, J E
  Davy.
• Enlarged their domestic mortgage market.
• Broaden its financial product offerings in
  Ireland.
• In 1987 acquired a British mortgage company from
  Bank of America, renamed it to Bank of Ireland
  Home Mortgage.
• In the 1990s significant acquisitions
• First New Hampshire Bank
• Amoskeag BankShares
• BankEast Corporation
• Great Bay Bankshares
• In 1996, reposition itself through a merger with
  Citizens Financial Group, a subsidiary of the
  Royal Bank of Scotland.
• In 1997, bought Bristol West Building Society,
  adding 150 branches and 1 million customers in
  the South West of the United Kingdom.

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Company Background

• By 1997, BOI had assets of IR19 billion
  (26 billion U.S. dollars) and 10,775 employees
  worldwide.

BOI Strategic Acquisitions and Growth
Lead to
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New Internet Initiatives
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Corporate

• The initiative involves
• Repositioning the Corporate Web Site from a
  static resource to an interactive information
  asset.
• Allowing customers to find out information about
  the BOIs products and services.
• Allowing customers to request contacts from BOI.
• Enhancing and developing the site into a
  financial product selling machine.
• Time Factor (easier to go online than opening
  branches)

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Banking 365 Online

• The initiative involved
• Enhancing customer service through availability
• Provide access to their bank 365 days a year, 24
  hours a day.
• Provide billing paying.
• Expected to sign up 1,000 customers in the 1st
  quarter, but instead signed up 1,300 customers
  with the first 24 hours.
• Improved customer relationship with BOI allowing
  the customer to get involved in designing the
  service of the future they wanted.
• Allowed interacting with the BOI using e-mail and
  filling out questionnaires online.
• Had a considerable head start in time,
  functionality, and mind share over the
  competition in the Irish market.
• Provide growth in area which usually had
  geographical constraints. Now able to market to
  the 40 million Irish descendants who were
  scattered around the world.

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ShopIreland

• The initiative involved
• Created to test technical and business
  requirements for Secure Electronic Transactions
  (SET) over the Internet.
• Assist some Irish merchants in test selling of
  products online.
• The business model for ShopIreland positioned
  the effort as a technology pilot. Merchants
  signed up for the trail and received the ability
  to sell their products online. The Bank provided
  the environment and cleared the transactions.
• Finding out about the eCommerce and how it works.
  

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Goals and Objectives

• Why go online?
• Customer service
• Low cost
• Convenient
• Time Factor (easier to go online than opening
  branches)
• Innovation-be a leader in the industry
• Create broader co-operative opportunities

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Why be leader?

• Benefits
• Customer buildup
• Corporate Status
• Web Presence
• Leverage off of Intl companies
• Innovation for competitive advantage (be the
  first in Ireland)
• Loyal Irish's abroad who might like the idea
• Integrated strategic use of technology
• Economies of scale (cut the cost of opening and
  maintaining accounts)

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Why be leader?

• Risks
• Playing with immature technology
• Possible CRM issues if customers find out credit
  card being used for experimental purposes
• Exit strategies in case the businesses dont
  materialize

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Why different Businesses?

• Marketing Scheme
• Different fronts for regular Business and retail
  business
• Culture
• Damage Control Business under different name so
  it wont associate BOI if the business fails

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Why different Businesses?

• Due to regulation the only other business BOI
  could get into outside of banking was a gift shop
• No clients of BOI had a gift shop business. They
  wouldnt want to compete with their clients in
  other businesses

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Issues with the Businesses

• Not core competency
• Even though selling gifts was not something BOI
  usually did, they put money into this venture.
• Question of testing SETS?
• Why not let someone else test it?
• Issues with being a leader?

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Issues and Concerns

• Dot Com phenomenon!
• Was BOI caught up?
• Uncertain future profits
• Management issues
• The Euro Changeover
• Risks Management

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General Issues

• Too much competitive mentality. Little more
  collaboration needed.
• Convincing management about the possibility of
  the internet. They were aloof, busy with other
  things. Missing forward looking insights.
• Procrastination I told you so attitude on
  failures instead of learning from it.

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Discussion
Floor wide open Questions ?
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Conclusion

• The world needs Banking, not Bankers
• --Bill Gates,
  Microsoft