Solutions for Banking Financial Services in the Future – Channel Renewal towards Revenue Enhancement

Solutions for Banking - Financial Services in the futureChannel Renewal – Towards Revenue EnhancementTiong Kee YongIndustry Manager, Financial ServicesMicrosoft Modernized Banking Services & Technologies, Vietnam, Apr 20-23 2006 Executive Summary Improve shareholder value Increase wallet share Improve mix Improve margins Lower delivery cost Increase Revenue Per Employee by increasing sales productivity and improving operational efficiency via Future Universal Sales Platform. Initial estimated impact Increase sales per revenue by about x% in Year 1 Introduce annual FTE savings of $M What Is The Future Operational Excellence The Low-Cost Producer Customer Intimacy The Trusted Advisor Product Innovation The Source of Best Ideas Asian Banks Source: Customer Intimacy and other Value Disciplines Harvard Business Review 1993 SUPERLATIVE CUSTOMER SERVICE “Provides legitimacy to offer advice” “Excites the customer and builds loyalty” “Positions the supplier as a trusted advisor, and minimises defection” INNOVATIVE NEW PRODUCTS INDIVIDUALISED AND HELPFUL DIALOGUE What Is The Future Current SituationIncreasingly competitive market (liberalization, globalization, demand-led) 57 Banks 30 listed companies 1000+ private companies SOE (2,600+ privatized) Microsoft Strategic Focus Areas Payments ATM/POS switch Corp2Bank Check Processing SWIFT Connectivity Treasury / Cash Management EBPP Credit Card Processing Mobile payments High and Low Value payments Security Settlem’t Fraud Mgmt Advisor platform / Portal Company and Industry Provided Services Advisory Management Advisor Platforms POS and Multi channel delivery Underwriting Prod Dev and Configuration Core Policy and Admin Claims Processing Re-insurance Insurance Value Chain Audit and Controls Doc and Records Management Corp Governance Reporting and Analytics Privacy and Security KYC/CIP Risk Management and Comp Certification Documentation Risk Management And Compliance Branch Seller Branch Teller ATM Internet IVR Call Center Customer Knowledge Mobile Channel Renewal Channel Profitability Distribution Effectiveness Operational Efficiency Sales Effectiveness Service Efficiency Channel mission and role Number of locations Mix of contact/sales points Roles of branch in reaching the customer Branch operations/ administration Back office like functions Technology efficiency Role of the channel in serving a customer Branch service model/layout Mix of self service, semi assisted and assisted solutions Customer experience in the branch CRM tools Performance accountability What-if, comparison tools Integrated channel sales approach Channel Strategies Base Infrastructure Integrated Innovation Phase I Integrated Innovation Phase II Integrated Innovation Future Technology and Solution Adoption Timeline ROI Phased Approach Transaction Emphasis Primary relationships only Limited transactions Traditional platform services Service emphasis All bank products Self service Retail “selling” All holding company products Wealth management support Retail “shopping Integrated 3rd party services Relationship pricing Multi Channel Integration Architecture Suppliers Channel Renewal Partners Canadian Bank Increases Employee Productivity by 23 Percent 25 % higher intranet task speed Customer service, loyalty improved Intranet admin cost down – ave time to produce a new site is expected to decrease from 10 days to 1.5 days Immediate investment impact BMO deployed a new employee portal with Microsoft Office SharePoint Portal Server 2003 and because of its tight integration with existing Microsoft products, ease of deployment and the advantages of a uniform development platform As the volume of data on its intranet grew, employees found it increasingly difficult to quickly find the information they needed. To address the reduction in productivity, BMO’s leaders knew they needed a new approach to employee information access “I look at the basics: customer satisfaction, employee satisfaction, and shareholder satisfaction. Without a doubt, the new employee portal is ringing up a tick on all boxes.” Rick Loggin, VP, Integrated Channel Management , BMO Financial Group Consolidated view of sales channels Reduced 60 day reporting cycles to T+2 Online drill down analysis by product, sales, branch, region etc Linked sales and performance tracking, promoting more cross sell of higher value products Windows 2000 Server SQL Server 2000 Host Integration Server 2000 Office 2003 Web Components Business Performance Analytical System (Consolsys Solution) Calculate Sales Incentives for payment into the staff account, and review of individual performance Track of sales activities and performance Provide sales performance analysis and report for Manager Sales & Service, Zone, Region and Corporate Head Office (Sales Management, Marketing) Maybank has more than 2000 CSOs (Customers Service/Sales Officers) and FEs (Financial Executives) as part of its "Sales Force" to sell financial products under the following domains: Savings & Investment, Protection (Life and General), Lending, Daily banking. Maybank has instituted action plans with the objectives of: Tracking sales performance And Incentive calculation for sales Mission Critical in Financial Services London Stock Exchange – 97,000 terminals receiving real-time Market Data SWIFT - Gold Certified Central Bank of Spain - clearing for High Value Payments CheckFree – 1000 tps and 24% less TCO Nasdaq – Market Data Service handles 5,000 tps at market open 70 percent of all new ATMs shipped are Windows-based Banco Azteca - 64-bit Platform for Bank’s Core Transactions Equifax - move to Windows Datacenter and .NET saved millions Citigroup – CitiVision Integrates 270 Different Sources of Information for 12,000+ Global Investment Bankers SAP Core Banking Benchmark 8,279,000 postings to bank accounts per hour Nationwide (UK) - Basel II Compliance Solution with SQL 2005 consolidating 80 different systems data and storing for 7 years SberBank – largest bank in Russia – all applications on SQL 60,000 docs per hour Bank of Montreal - 18,000 users on .NET Smart Client for Branch (.NET Framework) Merrill Lynch - 1-800-Merrill .NET IVR platform that serves 75m transaction a day Bank of America automates customer call center – 15,000 agents using Microsoft Customer Care Framework (CCF) Cheshire UK – core banking with Fincentric Interpay (Netherlands) 25 TB Payment System JPMorganChase – equities trading platform Allstate – Producer Connectivity network leverages .NET while helping enable Policy Management solution in record time. Barclays Trade and Positioning System processing 200 trades/sec up to 1000 trades/sec First American Title Company - Title and Escrow System consolidated 50 systems to one, 12,000 concurrent users, 64-bit capabilities Citigroup TreasuryVision - Managing Corporate Cash Around the World Leveraging Existing Investment Engaging With Microsoft – Next Steps Contact your Account Executive Define most significant area of business opportunity Develop an initial solution blueprint with Microsoft and our partners Roadmap