11.Improving Commercial Effectiveness in Changing Times in the Finance Market

8/13/2019 11.Improving Commercial Effectiveness in Changing Times in the Finance Market

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2009 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 1


Improving Commercial Effectivenessin Changing Times in the Finance

MarketBRKNEG-1010


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BankTransformation

using innovativeTechnologies

Rogelio Garcia [email protected]

Vertical Business Manager

Financial Services Mexico & CANSAC


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Challenges


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Banking

Transition

Transforming

Market Change in Financial Services

Terminating


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What the Business needs: Reduce Operational Cost Increase Sales Improve Gross Margin through better productivity

What our customers are saying: Move from Capex to Opex

Reduce IT complexity (Complexity = Cost) apps, infrastructure Help us add value Work with us as we transform / continue to provideinnovation

Business Drivers.Still the same


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The World has changed .


7/37 2009 Cisco Systems, Inc. All rights reserved. Cisco PublicPresentation_ID 7

Empowering Business Transformation

Transaction to Interaction

Empowering Business Transformation



But what of the impact?

"Moving from low to high levels ofcustomer satisfaction with optimizedbranch service will be rewarded with:

40% better referral rate - Word of mouth

45% fall in customer defection rates

26% increase in customer cross- buying

Source: Finalta Survey on "Improving BranchService" for EFMA.

Customers could see an improvement inresponse to calls to branches from atypical 20-30% no reply/late follow-up toless than 5%; this would translate into a4-5% increase in sales leads.

Source: major UK bank experience

ImprovedCustomer

Satisfaction



Follow the money!

Source: Forrester Research, Trends 2008: Retai l Financ ial Services , February, 2008; IBSGFS Customer Analysis, 2008

38% 57%Total: 95%

retain

acquire

increasesell

create

cut

very important critical

38% 50%

52% 37%

42% 45%

35% 23%

15%38%Total: 53%

Total: 88%

Total: 89%

Total: 87%

Total: 58%



Innovate in and across channels

Source: Forrester Research, Trends 2008: Retai l Financ ial Services , February, 2008

46%46%6%3%

almost never occasionally usually almost always

branch

call center

online

IVR/phone self-serviceemail

ATM/kiosk

cross-channel

2% 51%

46%22%

55%8% 18%

56%29%4%

50%19% 19%

45%8% 43%

44%

30%

18%

11%

12%

5%

2%



Increasing expectations

Innovating on the customerexperience

Consistent processes

Customer experience matters!

Customer experience isan end-to-end supply chain



Architecture and Solutions: Virtual Expert Digital Media Sales Acceleration Virtual Treasury



Enterprise TV

Video Agent

DigitalMerchandising

E-learning

Virtual Expert

VideoSurveillance

CustomerInteraction Mgmt

Banker Productivity

Multi-channelIntegration

Telepresence

Webex/MP

Mobility

Secure SelfService

CustomerExperience

OperationalEfficiency

CommercialEffectiveness

Risk Management& Compliance

Data LossPrevention

DigitalMerchandising

Network as the Platform

Data Center 3.0

FS Reference Architecture



Cisco Collaboration Architecture

Infrastructure Network StorageVirtual Machines

CollaborationServices

Presence

Location

Session Mgmt

Policy and Security Management

Client Frameworks

Content Mgmt

Tagging

Communicationand Collaboration

Applications

Conferencing Customer Care

Enterprise Social Software IP Communications

Messaging Mobile Applications Telepresence

On-Premise SaaSHybrid



This core is then leveraged by any combination of end-user

clients, devices or custom applications from Cisco or 3 rd parties

Infrastructure

CollaborationServices

Communicationand Collaboration

Applications

Delivering the Architectural FoundationCollaboration Now and in the Future



Link Business Valueto Technology Services & Capabilities

BusinessValue

TechnicalDifferentiation

Build Trust with Rich,Reliable Interactions

Connect the RightPeople andInformation

Accelerate TeamPerformance

Collaborate withConfidence Across

Companies

Maximize YourIT Investments

Real-Time Voice andVideo Leadership

Context: Presence,Session Management,

Tagging

IntegratedExperience

Intercompany,

Trusted Cloud

Openness andInteroperability



ArchitecturePlays

Value Proposition

CommercialEffectiveness

Customer Experience

OperationalEfficiency

Risk Management& Compliance

Cross-selling Up-selling Time-to-market

Customer acquistion

Customer satisfaction Customer retention Loyalty

Services availability Application performance Cost Reduction (TCO) Increase productivity Security

Fraud detection& prevention

Risck Control Business conti-nuity

CIOOperations

IT Security

Physical SecCompliance

SalesChannelsProductsSegmentsMarketing

SegmentMarketingSales
http://www.akml.org/images/PERS_IncreaseChart.gifhttp://www.akml.org/images/PERS_IncreaseChart.gif



Smart customer interaction delivers cost effective quality ofconversation to drive sales revenue growth

Specialist expertise availability withoutleaving the branch

Connection through phone, webcollaboration or video

Reduces revenue leakage and increasescross-sell ratio

Drives sales of higher margin/complex

products (insurance, investments etc)Improved banker close ratio

Increases specialist utilisation

Increased margins

Virtual Business ExpertReduced Revenue Leakage and Increased Customer Satisfaction



Customer

CustomerrequestoutsidePersonalBankersexpertise

1

I want a

mortgage.Can you pleaseassist me?

Personal Banker

Salesexperts

InvestmentsSmall business

LoansMortgages

Personal Bankerselects the Expert

menu on the IPphone and pressescorrespondingMortgage button

2

Call routed to therelevant specialist skillqueue; next availablespecialist initiates phonecall or video call to thePBs desktop

3 Specialist assistsPersonal Bankerin making thesale; documentsprinted andsigned bycustomer locally

4

Optimized Customer Interaction enablesVirtual Product Experts in the branches



Virtual Expert Example: European Banks

The NovaExperts service provides opportunity to communicate with a specialconsultant, and to jointly design a program tailored to suit customer housing,investment and insurance needs

In a specially configured space in branches, customers use advancedvideoconferencing technology to connect to the NovaExperts service

In-branch access to expertsvia video calls, especially atminimally staffed greenfieldbranches

Customers assigned a video-based Relationship Manager

Early pilots indicate anincrease of conversion rate of25%

Source: Cisco IBSG
http://www.novabank.gr/NovaBankVB/NovaBankEN/Home_EN



Virtual Business ExpertMortgage ExamplePotential for Significant Incremental Revenues

Monthly MortgagesSold per Banker

XRevenue per

Mortgage SaleX

% of RevenueLeakage

=Monthly Mortgage Revenue

Leakage per Banker 8 $1,750 10% $1,400

# of Bank Braches: 500 # of Bankers: 3 per Branch % of Sales Revenue leaked: 10%

Mortgage Sales / Banker / Month: 8 Average Mortgage Amount: US $50K Mortgage profitability: 3.5%

1) Monthly Leakage per Banker

2) Monthly Revenue Captured By Virtual Sales Experts

Monthly Mortgage RevenueLeakage per Banker

X Total # ofBankers

X Closing Ratioof VSE's

= Total Monthly RevenueCaptured By VSE's

$1,400 1500 25% $525,000

Business Assumptions

3) Yearly BenefitTotal Monthly Revenue

Captured By VSE'sX Months =

Yearly RevenueOpportunity

$525,000 12 $6,300,000

USD $6.M(not inclusive of additional labor

costs)

An Outside -In Benefit Calculation for LATAM Bank



Pain Points Benefits

Long queues with no entertainment/information

Unclear where to go in the branch forspeedy service

Poor product placement and unavailableor uninspiring content

Uninformed staff and reliance on follow-up communications

Lack of community relevance/personalization

More inviting environment withentertainment and information while inline

Directional information that can changedynamically

Dynamic and compelling productinformation

Better trained staff

Targeted and relevant local content andcommunications in the branch

Digital

Signage

Maximum Benefit when Aligned with Branch Business Initiatives(Product Introductions, Demographic Segmentation, Community Building, etc.)

Branch Media Management



Digital Media Business Drivers

Promote, cross-sell/up-sell

Marketing videosthat grab viewerattention

Compellingproduct andservice information

Provide a humanface on content

Reduce perceived

wait time

Direct line ofcommunicationsto employees orcustomers

Global corporatemessaging

consistencyImmediateexecutivecommunications

Live broadcastof companyevents

Instantcommunications forrapid response

Directional signage(way-finding)

Informationalvideos available on-demand

Breaking newsrelevant toemployees/Emergency

communications

Cost-efficienttraining to remoteemployees

Informationconsistency acrosschannels

Power of video users retain moreinformation

Increased ability toabsorb informationin searchable

segments

Sales andMarketing

CorporateCommunications

Information

Sharing

Training
http://ccc-sjc-001/sites/dms/Photography/Company%20Meeting%20-%20Nov.%2030/_DSC0316.jpghttp://ccc-sjc-001/sites/dms/Photography/SJC19%20(lobby%20and%20sign%20by%20Thomas'%20office)/_MG_3084.JPGhttp://ccc-sjc-001/sites/dms/Photography/digitalSignageInAction4x6.jpghttp://ccc-sjc-001/sites/dms/Photography/Company%20Meeting%20-%20Nov.%2030/_DSC0316.jpg



Experience Based Digital Signage

2008 NBAAll-Star GamePlasma Wall

2008 NBAAll-Star GameKiosks

2008 NBAAll-Star GameLuxury Suite

ConnectedStadium



Net Effect Is Improved Employee and Customer Satisfactionand Reduction of Operational Risk

Rich Media Communications alsoimproves overall operational execution

Fostering consistent corporate culture

Improving the timeliness and reach of communicationsto geographically distributed branch network

Regulatory and compliance adherence

Improved adherence through faster and more accuratecommunications

Accelerated Mergers and Acquisitions

Faster integration of business units and uniformity ofprocess and procedures

Key Drivers for Better Executive and Corporate Communications in

Financial Services


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The Importance of Visual InteractionA Person Remembers

30%of WhatThey See

70%of What

They Seeand Hear

Importance of Visual Traffic*30% of brains cortex devoted to vision, 8% for touch and 3% for hearing

More than 60% of communication is non-verbal

52% of video advertisements lead to a response

20%of What

They Hear


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Banker Sales Acceleration

Combines content management andUnified Communications technologies

Shortens time-to-competency throughbandwidth-efficient delivery of

knowledge assetsEnables best practice sharing throughsocial networking

Accelerates on-boarding and reducesstaff turnover

New product launches in days ratherthan weeks accelerating time tovolume

More reactive to market opportunities

Accelerate Peer-to-Peer Interactions and Training to Build

Front-line Skills to Generate Top-line Growth


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Banker Sales Acceleration example:Training new banker hires

New hire reviewsknowledge alerts andtraining curriculum on the

banks learningmanagement system(LMS) portal

1 New hire clicks URL in the LMS

portal to auto- launch content

If training is live, newhire selects IM, phone,or email for questions

If not, VOD stored on localcontent engineis launched

Course begins

2 LMS prompts for brief

optional online survey

New hire takes onlinetest of courseknowledge

Results savedin LMS

3


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Banker Sales Acceleration example:Accelerating product rollouts

In-branchconference room

One day before product launch Personal Bankers meet in a branch for a

live webcast or VOD (webcast captured for

replay) Product expert explains new product and

offers guidance for selling it Marketing executive explains promotions

for new product

Two days after product launch Personal Banker begins introducing new

product to customers

Views VOD that provides more detail onproduct features and recommendedsales techniques

In bankers ownoffice


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Virtual Treasury

Enabling corporatespecialists to spend more

time in client engagements,increasing revenue, withoutincurring additional costs.

Enhanced communicationsenable faster agreement & stakeholder

decisions

Vi l T


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Virtual TreasuryBusiness Benefits

Unwinding the complexity of products, services& new instruments

Accelerate execution & decision making

Real time management of corporate portfolio

Enhance relationships through Value-addedServices

Management across multiple treasury entities

Competitive brand differentiation & improvesales capability

Facilitation of complex transactions (M&A)

Reduce internal travel costs

Virtual Treasury is a next-generation collaboration solutionthat transforms the way the Bank effectively manages and

communicates complex financial relationships


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Your window to your Corporate Customers

Treasury LatAm

Treasury US TreasuryEMEA

InternalDepartments

The Virtual Treasury Landscape


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Virtual Treasury

Changing the Dynamics of DoingBusiness

Optimize Customer Relationships Accelerated Decision Making Increased Sales & Margins Reduce Revenue Leakage Competitive Differentiation

Delivered as a Managed Service


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Increase Sales: Virtual Business Expert Branch Media Management Banker Sales Acceleration

Improve Gross Margin/ Operational Efficiency: Banker Personal Productivity Branch Media Management Virtual Business Expert

Banker Sales Acceleration

SummaryEnabling Business Value


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Conclusion

Vis ion w i thout ac t ion i sm erely a dr eam .Ac t ion w i thou t v i s ion i s

ju s t p ass in g t im e. Vis io nwi th ac t ion c an c hange thew o r l d .

Nelson MandelaPresident of

South Africa1994-1999


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11.Improving Commercial Effectiveness in Changing Times in the Finance Market

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