Customer Centricity Driving Growth in Today's Leading Banks

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Customer Centricity - Driving Growth in Today's
Leading Banks

• Larry Dalus
• Senior Solutions Consultant, Financial Services
  Industry
• Oracle Corporation

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The development, release, and timing of any
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Customer Service A Sustainable Competitive
Differentiator?
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Is the Customers Experience Important?
Improving the customer experience is critical in
order for banks to meet customer-centric goals
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What is an Exceptional Customer Experience?

• Every customer interaction is a moment of truth
  a point in time where the customer will form a
  view of the Bank and their willingness to
  continue the relationship
• Ingredients of an exceptional customer experience
  includes
• Know your customer
• Anticipate and understand their needs,
  up-servicing the customer
• Being a customer advocate and trust advisor
• Leveraging existing customer and interaction
  data
• Only ask for customer for specific information
  once, but capture for future use
• Address issue promptly removing any non-value
  added processes
• Regularly update and realign to changing customer
  needs and feedback

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Challenges to Delivering an Exceptional Customer
Experience
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Retail Banking Investment Priorities
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The Underlying Objective of Branch Transformation
"Like many organisations, post the internet
revolution, we're recognising that branches and
face-to-face (service) are more important than we
might have expected, so further developing our
branch network is an important goal for us.
Les Matheson, CEO, Citibank Australia
Source Citibank Hunting for Deals, October 31,
2005
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Branch Banking Example
Pre-Interaction
Static list of target customers

• New Loan product created
• Promotion launched

One size fits all message
Branch Interaction
CSR has to manually follow-up
Referrals are written on paper
Teller is unaware of whether customer has product
Branch Staff unaware of promotion or other calls
Post Interaction
Uncertain about product sales
Compensation for Teller and CSR is Manual
CSR manual follow-up about product closing
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Addressing the Challenge through a Multi-channel
Customer-Centric Transformation
Pre-Interaction

• New Loan product created
• Promotion launched

• Segmentation to leverage predictive customer
  insight

• Effective Target Campaign Offers

Branch Interaction

• Referral electronically captured
• Automatically assigned to the appropriate user

• Teller reads product offer

• Branch Staff are aware of customer campaigns

• CSR verifies product fit and applies online

Post Interaction

• Compensation is automatically tracked

• Automated follow-up on product closing

• Product sales known

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Siebel CRM 8 Transformational CRM

• Empower Users
• Provide proactive, real time insight at the
  moment of customer interaction through a
  flexible, role-based user interface
• Enable Business Responsiveness
• Enable the business to respond to ongoing
  business process changes and to directly improve
  the customer experience
• Ensure Value
• Provide choice by supporting multiple deployment
  options and ease of integration at the lowest cost

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Superior User Experience
Empowering Users Task Based User Interface
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Embedded Intelligence
Empowering Users Embedded Intelligence
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Information Discovery
Empowering Users Enterprise Search
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Empowering Knowledge Workers
Empowering Users
Email and Collaboration
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Siebel Branch Banking Solutions

• Branch Teller
• Embedded 360 degree view of customer
• Customer centric transaction processing
• Optimised for maximum speed
• Prompts and indicators to offer superior service
  levels
• Referral capture and routing
• Cross- up-selling
• Store and Forward / Offline Processing

• Branch Platform Sales Service
• 360 degree view of customer across channels
• Process oriented account origination
• Needs analysis and sales tools
• End to end service management
• Campaign and lead management
• Fully integration with desktop productivity
  applications
• Contact management

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Siebel Finance Analytics Solutions

• Siebel Analytics for Retail Banking
• Over 120 purpose built analytical charts for
  retail banking
• Pre-built mappings to Siebel operational CRM
• Executive dashboards
• Credit Origination and Credit Card dashboards
• Private Banking dashboards
• Marketing dashboards

• Siebel Analytics for Institutional Finance
• Institutional Sales dashboards
• Investment Banking dashboards
• Corporate and Commercial Banking dashboards
• Wealth Management dashboards
• Account Management dashboards
• Investment Holdings dashboards

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Whats new in Siebel 8 for Financial Services?

• Streamlined Account Origination
• Rules Based Loan Underwriting
• Advanced Insurance Claims Management
• Automatic Reserve Coverage
• Payment Invoice
• Subrogation
• Fraud

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The Global Leader in Front Office Solutions for
Retail Banking
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Westpac Banking Corporation

• As of September 30, 2005 Westpac had
• 27,000 Employees
• Global assets of 260 billion AUD
• Net profit after income tax was 2,818 million
• Westpac is ranked in the top 10 listed companies
  by market capitalisation on the Australian Stock
  Exchange Limited (ASX)
• Westpac serves 8.3 million customers, through key
  business areas of
• Business and Consumer Banking
• Wealth Management
• Institutional Banking

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Five Year Strategy to Transform Westpacs CRM
Capabilities
Source Customer Centric Bank Transformation,
Fernando Ricardo, Head of Sales and Service
Desktop, Process and Channel Transformation,
Westpac Bank
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Five Year Strategy to Transform Westpacs CRM
Capabilities

• Customer Needs Based Conversation is linked to
  Oracle CRM across the Banks branch network
• Westpacs CRM program provides the banks sales
  teams with the context to understand and meet
  customer needs

Source 2006 Market Update, Westpac Bank
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Five Year Strategy to Transform Westpacs CRM
Capabilities
Source Customer Centric Bank Transformation,
Fernando Ricardo, Head of Sales and Service
Desktop, Process and Channel Transformation,
Westpac Bank
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Five Year Strategy to Transform Westpacs CRM
Capabilities
Source Customer Centric Bank Transformation,
Fernando Ricardo, Head of Sales and Service
Desktop, Process and Channel Transformation,
Westpac Bank
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Five Year Strategy to Transform Westpacs CRM
Capabilities
I now have the ability to track sales every
day across the network. I can drill down to a
small business banker individually and look at
what their pipeline looks like. As you can
imagine, this is a great capability for a small
business manager for coaching Mike Pratt,
Group Executive, Business and Consumer Banking,
Westpac Bank
Source Customer Centric Bank Transformation,
Fernando Ricardo, Head of Sales and Service
Desktop, Process and Channel Transformation,
Westpac Bank
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• 155 Year Old Bank of the Philippine Islands
• 11,000 Employees
• 890 Branches
• Assets of over 10 Billion USD
• Headquartered in Manila
• Significant Market Share
• 2.6 Million Customers
• Second largest commercial bank
• For years, international publications and rating
  agencies have given annual awards to BPI as one
  of the best banks in the region.
• Among these are the Far Eastern Economic Review,
  The Banker, Euromoney, Asiamoney, BusinessWeek,
  The Asset, Global Finance, Finance Asia, and The
  Asian Banker.

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• BPI recognised the need to constantly look for
  ways to maintain its market leading position,
  viewing technology as vital to supporting their
  business strategy
• In 2001, BPI became the first bank in the
  Philippines to implement a Customer Relationship
  Management (CRM) system. This was to address
• No centralised sales system
• RMs using different application or manual paper
  files to locate customer information
• RMs managed their time and client data using
  paper calendars and notebooks
• No automated method of monitoring sales campaign
  responses, gleaming knowledge from sales data, or
  targeting campaigns to specific customer
  segments
• Our vision was to become a customer centric
  organisation, delivering personalised service and
  superior products. But even at the branch level
  we had no standard way of managing customer
  relationships or leveraging cross-sell
  opportunities- Arlene S. Dayrit, Assistant Vice
  President, CRM, Bank of the Philippine Islands

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• BPI divided its customer base into different
  segments, focusing its CRM initiatives on the
  Preferred customer group. Each Preferred Customer
  was
• Assigned a dedicated RM
• Given an express lane in bank branches to
  complete transactions quickly
• Provided with updates on developments and trends
  in the economy
• Profiled in order to better understand their
  needs
• BPI restructured its branch organisational
  structure into two distinct teams

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• Improved Marketing Performance
• Marketing users are now able to query the
  customer database, develop customer segments, and
  distribute prospect lists to RMs
• Reduction in prospect list creation from 30 days
  to only 1-3 days
• 233 increase in campaign response rates
• 174 increase in campaign conversion rates
• Enhanced Customer Service
• Call Centre Agents now have real time access to
  customer information
• 40 reduction in service request processing time
• Increased customer satisfaction
• Increased Sales Over Non-CRM Branches
• 71 increase in Auto loans
• 110 increase in mortgage lending
• 164 increase in Credit Card applications
• BPI recovered 105 of its cumulative investment
  in hardware, software, and training in just three
  years

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Customer Centricity - Driving Growth in Today's
Leading Banks
Oracle Siebel CRM 8