ATM Network Implementation An integral part of branch Transformation

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ATM Network Implementation- An integral part of
branch Transformation
Peter Helis Marketing Manager Diebold Pacific
Limited, Hong Kong
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Agenda

• Diebold Who are we?
• Branch transformation, what is it all about?
• Different markets, different drivers
• Self-service deployment a strong case
• Implementation how to move forward?

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Diebold Who are we?

• A global leader
• financial self-service, security, electronic
  voting and related services
• presence in nearly 90 countries
• more than 14,000 associates worldwide
• A services company
• providing integrated technology solutions
• enabling our customers to maximize their
  self-service capabilities
• servicing with one of the financial industrys
  largest staff
• over 5,000 professionals in 600 locations
  worldwide

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Where are we today.

• 2.8 billion company
• ATM solutions
• Security solutions
• Voting solutions
• Custom maintenance services
• Professional and special services

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Branch transformation
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Traditional Branch

• reactive administration centre
• administrative and transactional tasks are
  majority of tellers work
• inflexible, following strict corporate guidelines

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The transformed branch

• Pro-active relationship centre
• Sales-driven, advisory
• Improved customer experience
• Flexible in approach to local and customer need
• Focus on financial needs of high-end customers
• migrated transactional tasks to Self-Service
  channel

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Different markets, different drivers (1)
GERMANY

• Current Customer behavior
• Technology acceptance is slower due to higher
  median age
• Accustomed to use branches for generations
• Large network of branches already exists
• Branch channel objective
• Sales and advisory center
• VIP banking
• Minor transactions
• Self-service channel objective
• Majority of transactions, such as withdrawal,
  deposit, transfer
• Cost saving on expensive staff

• Population 82.5 Mill.
• 65 years and over 19.4
• Median age 42.6 years
• Annual growth 2.7
• Number of ATMs 53,000
• Number of Bank accounts 85 Mill.
• 650 Internet users/ 1,000

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Different markets, different drivers (2)
Thailand

• Current Customer behavior
• Branch channel objective
• Expand range of deposit, investment and credit
  products
• Self-service channel objective
• Increase footprint in areas with extensive
  business opportunities
• Minimize cost of operations
• Decrease traffic at branches as internet and
  phone banking is not very widely spread

• Population 67.5 Mill.
• 65 years and over 8
• Median age 31.9 years
• Annual growth 4.8
• Number of ATMs 19,800
• Number of Bank accounts -
• 125 Internet users/ 1,000

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Different markets, different drivers (3)

• Current Customer behavior
• 80 of population lives in rural areas
• Less than 20 of population hold bank account
• Technology acceptance is faster due to lower
  median age
• About 20 of transaction are still cash
• No significant dependence on branch
• Branch channel objective
• MAIN - Sign up new customers for bank/saving
  accounts
• Private loans, VIP banking
• Educate customer about banking and electronic
  payment benefits
• Self-service channel objective
• Faster increase bank presence at lower cost
• Easier access in remote/rural areas
• Attract potential customers to get bank account
  with bank card
• Earn off-us transaction fees in
  tourist/business areas
• Brand/image building

VIETNAM

• Population 84.4 Mill
• 65 years and over 5.8
• Median age 25.9 years
• Annual growth 7-8
• Number of bank accounts 1.5 Mill
• Number of ATMs 3,000
• 71 internet users/1,000

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The impact - Bank S, Japan

• Branch is still king among channels, though role
  has changed
• From 2001 2006
• Operational staff - from 10 per branch to only 2
• Sales staff - from 3 to 15 at the same time
• Annual branch operation costs - from 3.4 million
  to 2.5 million
• Sales staff reaches 88 from 56

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A strong case for the self-service channel

• Dependence on traditional branch lower than in
  other areas of the world
• Low ATM density (Viet Nam 35/1Mill Germany
  643/1Mill.)
• Technology acceptance inversely related to age,
  i.e. the younger your customers the more likely
  they will accept new technology (Vietnam 25.9
  Germany 42.6)

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10 More reasons

• 5. Cost savings
• 6. Faster, more efficient service
• 7. ROI for business/ organization
• 8. More choice
• 9. Privacy
• 10. Better data collection

1. Customers want to CONTROL their own
experience 2. Customers want to IMPROVE their
own experience 3. Minimize poor customer
service 4. Convenience (including
accessibility and 24/7 availability)
Source Market-wide survey of kiosk and
self-service user/deployers and suppliers (April
2004)
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THE IMPLEMENTATION
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Concept 1

• Your current branch
• Sales and Consulting
• Service facilities dedicated to specific, more
  complex purposes, but not everyday transactional
  banking activities
• Signing up for accounts
• Loans
• Investments
• Insurance

• Self Service channel
• Various units for
• withdrawal
• deposit
• transfers
• passbook
• Updates
• Enquiry

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Concept 2

• Mini-Branch
• Close to offices, shopping centers, tourist spots
• Equipped with ATMs, Kiosks, PCs, passbook
  printers
• Staffed by one or two representatives, who assist
  customers on using self-service technology

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Concept 3

• Self-Service Banking Center
• Nearby offices and shopping centers
• Fully automated with ATMs, Kiosks, PCs and
  Remote Teller Systems
• Target technology savvy professionals who are
  happy to serve themselves

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Concept 4

• Off Premise ATMs
• Good tool to grow bank presence in a cost
  effective way
• The FI can earn income on off-us transactions
• Ideal locations are supermarkets, hotels, tourist
  resorts, and airports

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A last thought from the experts
On Viet Nams entrance into the WTO Overall,
foreign bank branches have absolute competitive
advantage over local commercial banks, and on
average, technology is the weak point for
Vietnams financial sector. (Source
International Finance Corporation - World Bank
Group)
The opportunity for transformation has arrived.
Lets grasp it!
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• QA
• For further questions please visit us
• outside on booth
• 1415

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Thank you!