Spanning the Silos

1
Spanning the Silos

• Lessons Learned From Implementing Customer-Level
  Decision Automation

Louise NicholsonAVP, Business Applications and
Credit Services
2
About TD Canada Trust

• TD Canada Trust provides a full range of
  financial products services to approximately 10
  million personal and small business customers
• Products services are provided anywhere,
  anytime through telephone and internet banking,
  more than 2,400 automated banking machines and a
  network of 1,014 branches located across Canada.
• Ranked first by the market research firm,
  Synovate, in eight of the eleven customer
  satisfaction categories.

3
Why was change required?

• In 2000, the TD Bank and Canada Trust merged at a
  record pace presenting the following challenges
• Inefficient processes
• Complex operating environment
• Insufficient management reporting
• Lack of an integrated customer view

4
Our approach to resolve our dilemma

• Step 1 Five year credit strategy
• Articulate our long-term credit strategy
• Who are our target customers?
• What business do we want to be in?
• How will we grow our customer base?
• Will we be market leaders or followers?
• Develop the supporting business and technology
  models

5
Our approach to resolve our dilemma (contd)

• Step 2 Conceptual Design
• Develop our credit process models
• Identify our tactical requirements
• Identify our technology requirements
• Refine our business case
• Create the high-level implementation plan

6
Our approach to resolve our dilemma (contd)

• Step 3 Implement the vision
• Acquire new technology (Buy vs. Build where
  possible)
• Implement the new credit infrastructure
• Develop our implementation approach

7
Our approach to resolve our dilemma (contd)

• Step 4 Monitor and Continuously improve
• Monitor strategy outcomes
• Regularly update scorecards
• Continuous champion/challenger testing

8
Indirect Sales
Sales Force
Telephone Banking
E Bank
Branches
Decision Presentation
Customer Requests
Application Data Credit Decisions
CREDITLINK In House Developed Origination
Front-end
Pre-approved Credit Limits
CUSTOMER MANAGEMENT TRIAD
CAPSTONE (QuickApp, FullApp)
Application Booking/Funding
Customer Management Processes
TD Accounting Platforms
Automated Actions Data Feeds
AdjudicAide
9
Origination Account Management Together
10
Phasing allowed benefits realization while
spreading resource consumption
Spring 2005
Winter 2003
Primary phases
Supplemental phases

Quick App Decisoning
Decisioning SBB on a Personal Covenant SBB on a
Business Covenant
CM TRIAD Repository Offers
Origination (Direct and Electronic
Banking) Personal Lending Real Estate SBB
Full App Decisoning
Account Management SBB Reviews SBB Positive
Actions Collections
Origination Offer Screens
Additional Functionality
Core Infrastructure
11
How are we performing?

• CAPSTONE QuickApps and CMT Offers
• Volume has increased by 60
• The easy fulfillment process has allowed
  electronic Banking channel to readily accepted
  the new offers functionality.
• CAPSTONE FullApps
• Auto adjudication rates have remained constant.
  (The complexity and credit quality of these
  applications has changed as a result of
  QuickApp/Offers)
• Resubmit rates into the Credit Centres have
  increased by 15. (A result of branch capacity
  savings and deficiencies in the current
  origination application)
• Improved PCLs according to early indications,
  but too early to discern significant trends
• CMT Strategy Refinements have the following
  anticipated results
• 30 increase in VISA approval rates
• 14 increase in ULOC approval rates

12
Key Learnings

• Vision
• Project Team Structure
• Continual Communication
• Focus
• Project Team Structure
• Customer View
• Business Partner Ownership

13
What happens next?

• Leverage new infrastructure
• Re-visit phasing approach and project governance
• Complete final phases

14
Conclusions

• Customer centric view is the right approach
• Be flexible
• Level of investment