Microsoft Bank Branch of the Future

A Microsoft beveling and Capital Markets White Paper The fixing concern offshoot of the prox day 2 The shore complication of the coming(prenominal) ContentsRedefining the case of subdivisi sensations 4 Case study Nascent digital understanding node needs 8 Article The Fiserv perspective information convergence, inter tourion specialization and the magnificence of integrated transmit 10 Recognition get bying to a commercialize of one 12 Case study CRM at Wintrust pecuniary and Fiserv 14 Case study customer-centric at the core First Citizens subject field chamfer and Harland monetary Solutions 15 Engagement creating memorable touch points 16 Case study digital signage at ruminate Systems and top hat purchase 18 Customer use scenarios Microsoft advance at Barclays bank and Royal Bank of Canada 21 Case study Streamlining conversations at fidelity 22 Origination developing rising c be opportunities 23 Case study Predictive analytics at U. S.Ban corp with Portrait Softwargon 25 pen Secure paperless beaching with digital touch modality from Topaz and AssureSign 26 Case study Incentives at Bank of the westerly and Varicent 27 Service taking nodes to the side by side(p) level 28 Case study Next-generation self- advantage at BBVA with NCR 30 Case study Espirito Santo packs a check patoising feature with CRM and a 360 degree, integrated guess of the node 31 Innovation developing saucily products and run with guests 32 Case study Social cipher at NewsGator and CME Federal Credit Union 34 Bringing it each in all together technologies of alley desegregation 35 Article Creating a consistent customer invite done transport synchronization 36 Having a imaging for the approaching 39 Profile Helping customers succeed with ARGO 40 Realizing the come a vocalization of the future 41 Microsoft partners appearing in this paper 42 Microsoft in financial Services Financial function is a major industry for Microsoft Corporation. Our commitment to the industry comprises knob-dedicated accounts teams, and technology and industry specialists. Our solution beas embrace to the highest degree every formulationt of the industry, including client experience, g everyplacenance, risk and compliance, payments, and operating capabilities. The U. S.Financial Services industry group led by Ben Nargony is responsible for developing pecuniary work solutions combining Microsoft capabilities with those of our partners, for our U. S. - assemble positing clients. This is one in a series of eyeshot leadership papers tendencyed to forecast at insight into prima(p) industry issues and help our clients realize their vision of the future. www. microsoft. com/financial run The buzzword tell apart of the future 3 A message to our customers and partners later a signifi tidy sumt accomplishment of expansion, cusss atomic number 18 finding current market conditions tough to say the least. Pu tting customers first is the right response, and the disunite is the dress to do that. solely the image of disunitees is ever-changing dramatically. Transactions are wretched to the Internet, so customers may deport fewer reasons to visit pitchforkes.In addition, revolutionary technologies, such as social net working(a) and personal financial concern (PFM) tools, are transforming the blood with customers, forcing patoiss to develop pertly personal manners to bring into being the right customer experience firearm empowering customers and giving them untold control. If subsection visits are less frequent, they mustiness(prenominal) construct more(prenominal) valuable and more interesting. The days of subsisting and potential customers walking into pegleges and non being recognized or effectively engage are over. A parvenu era of point-by-itemized financial work is forcing sticks to sell to a market of one. This signifys understanding customer needs and addressing them appropriately. This to a fault means moving from a reactive gross revenue model to a proactive one, where customer needs washbowl be anticipated in advance.Thanks to dislodges in technology, customer expectations of the experience they should receive when they visit the tell apart are rising all the judgment of conviction. But that filling get-goes with new technology isnt the answer. There needs to be a plan in regulate and one developed with customers in mind. The customer should be at the center of the fork operation. The assort of the future is an engage, synergistic and fun environment. It should also be a lower cost one. There is chance for a dramatic purifyment in branch performance. This means streamlining motiones, eliminating paper, and improving front and back-office integration. starting time grant are being asked to form a different role. Branch personnel need constant education to do this.The technology of the branch of the futur e exists to empower tellers, financial advisors and dish representatives to serve customers more effectively, moving from a reactive to a proactive engagement model. Microsoft Corporation has a strong commitment to the branch of the future. Directly and done our partners, we work with financial institutions around the world to develop their own path to break performance. M either of those solutions are outlined in this white paper. We hope you find this a useful part to your future plans and the longer term direction of our industry. Yours truly, Ben Narey Director, U. S. Financial Services Colleen Healy General Manager, U. S. Financial Services 4 The bank branch of the future Redefining the role of branches T A dizzying period of compound echnology is changing at a blurring rate.It is at once more social, machine- loving, supple and continuous. We are seeing game-changing advances in m each areas from substance ab exploiter interfaces to Internet TV. Its not entirely pr oceedings that are moving to the Internet merely conversations and family births as easy. In this new world, banks are engaging with customers in very different ways. For some banks, branches are emergent as the new, technology-enabled centerpiece in the relationship with customers a place where transmit and technology converge to create a new era of personalized banking in the branch of the future. Banks face early(a) challenges. Revenues are stalling, margins are under pressure and costs remain high. For m whatever, technology remains fragmented.As banks invest more in customer technologies, they must also reduce costs and improve margins, achieve more with less, and at the same time comply with new regulation. In this constantly shifting story, in that respect are m each moving parts, and they must all come together to wow customers without confusing them. The branch of the future is an exercise in origin that must be belligerent, game-changing and ultimately pro equal able. It must be part of a broader strategic focus that considers all impart, not just the branch itself. It ordain get not just a vision, besides an eco body of partners that poop deliver it. Microsoft expands its reach by working closely with partners to deliver many of our capabilities, and many of them are include here.In this paper, we lay out a process that a bank could follow in developing its branch of the future story. As steps in that story we include case studies and solutions that we believe are leading edge. We realize that every banks journey go forth be different because each bank will need to develop its own unique burn down to the branch of the future. Branches are rising as a place where channels and technology converge to create a new era of personalized banking. The new alternative channel? Many banks consider the branch to be their primary customer relationship channel. But do customers feel the same way? Today roughly 90 percent of periodic transactions take place electronically.Checks may be phased out in most developed economies in the succeeding(a) few years. Branch employment is on the decline. Are branches the new alternative channel? Does that mean branches are finished? Not necessarily. Bank customers unflurried seem to m different a strong kinship to branches even though they may visit them less. But it does mean the role of the branch must change and be less dependent on transactions. What should this new role be? To answer that question we must pee-pee a transgress understanding of what customers really want. The bank branch of the future 5 And that boils down pat(p) to at least three things. Firstly, they want more control over their finances.One of the consequences of the financial crisis is a tint of greater insecurity and a decline in trust in financial institutions. Thanks to the harvest-home in technology and the disclosures surrounding the financial crisis, bank customers often k presently more or so th eir banks than banks do intimately their customers. Secondly, consumers want more choices and are less willing to put all their financial ball in one basket. They are more willing to change banking relationships and are less loyal to their existing extendrs. Thirdly, they want a better experience. Banks often measure their performance with customers based on service satisfaction, but service is only part of the equation.The mightiness to access code banking serve at any time from any location, transparency in fees and simpler contracts, and access to quality, impartial advice all sum up to a new rate exchange between banks and customers that may de beautiful the next phase of banking. Technology is licking a wide part in transforming the banking experience. Smartphones and slates (tablets) are giving consumers greater mobility. Cloud computing gives all of us easier access to more computing power. Game-changing t come downs in the technology of communication theory and na tural user interfaces enable new ways for banks and their customers to engage with each early(a). So what is the transformation in the role of the branch that needs to take place? Snacks, lunches and fine dine experiences Perhaps the experience of other industries might provide us with some clues.Financial services provider Fiserv has equated interaction finished with(predicate) banking channels to snacking, lunching and fine dining (see article on rascal 10). As our lives become busier, long, lingering meals become more rare. Snacking has become a way of life, often at our desks kind of than at restaurants. So restaurants must work harder for our chore. But there are many restaurants to need from. How do they compete for our attention? Every good restaurant needs its own brand. Often fine food is not enough. It may need a theme or an image. It might be the state of matter of the cuisine. It might be a constantly changing menu. It might be the dexterity to lose snacks, l unch and fine dining in the same location.From the services, to the cutlery and the plates to the interior to the food itself, all these elements may commingle to create a unique customer experience. In the case of banking, customers have a choice of channels and therefore experiences. But if most of the channels are primarily about transactions or snacking, wherefore they are wish wellly to prefer fast food to fine dining. For the branch to be attractive, it has to have something else on the menu. Game-changing breedings in the technology of communications enable new ways for banks and their customers to engage with each other. 6 The bank branch of the future The branch where all channels thunder mug convergeToday bank channels are interchangeable those in the first diagram in Figure 1 main(a) channels that are generally about snacking. In this model, it is casual to see how the branch becomes less important as snacking channels grow. But some customers may prefer to res earch online and get advice in the branch. Their financial journey may involve a combination of visits to different channels at different times, perhaps even for the same service beginning a journey in one channel and completing it in another. In this way, channels reinforce each other rather than compete with each other for customers attention. The new model of bank channels is more like the second diagram in Figure 1. Channels are no longer siloed but mutually reinforcing.Instead of playing a diminishing role, the branch outhouse begin to play a more influential one. But the branch is the one channel where all channels peck converge. Like the airline or the restaurant that offers a choice of customer experiences, snacking, lunching and fine dining can all take place in the same location. As a result the branch becomes an easier place to conduct all our banking seam rather than the least attractive of all. go out 1 Transforming the role of branches BANKING TODAY BANKING TOMOR ROW MOBILE MOBILE browser CHANNEL USAGE CHANNEL USAGE BROWSER CALL CENTER CALL CENTER BRANCH BRANCH INDEPENDENT channel WITH FRAGMENTED IMP betINTEGRATED CHANNELS AND GROWING INFLUENCE The bank branch of the future 7 Dimensions of branch transformation Microsoft believes there are at least five proportions of branch transformation that can lead to a significant increment in customer experience and financial performance. Branch figure balancing communicateing with privacy, access and convenience genius more focus on advice and expertise and less on transactions Channels integrated and mutually concurive Innovation customer turn onn, building on experiences and solutions Brand unique and customer driven In each of these dimensions, technology has a major role to play.But the real challenge is to empower each dimension so that they operate together to enhance the customer experience, improve revenues and reduce costs. A fragmented onward motion will simply annex co sts, confuse customers and reduce financial performance. Effective branch transformation demands an enterprise-wide blueprint. A project to build nextgeneration automated tellers needs to take into consideration the opportunity to empower and integrate other channels. A project to introduce digital signage should consider not only the customer experience, but the baron to improve staff performance as well. The introduction of digital tinges and automated account opening should consider the implications for history guidance and records keeping.We are not just transforming branches but creating a muster outly new retail banking business and operating model to deliver a higher standard of customer experience. A continuous process of performance improvement Branch activities should involve a continuous process of performance improvement based on an in-depth understanding of customer needs with the goal of deepening customer relationships. Recognition selling to a market of one Engagement creating memorable touch points Origination developing new business opportunities macrocosm run into 2 A continuous process of performance improvement RECOGNITION ENGAGEMENT customer RELATIONSHIP MANAGEMENT gt Service taking customers to the next level Innovation developing new products and services with customers Ideally, almost all these activities should be capable of taking place at any part of the branch, whether at an ATM, in a teller line, at a teller booth, or in discussions with a service advisor or a banker. But if executed effectively, one step will lead to another, creating a positive loop of continued performance improvement. (See Figure 2. ) SERVICE ORIGINATION 8 The bank branch of the future CASE report card Nascent Digital understanding customer needs Its easy to spend money on technology. But it is more important to understand what customers really want from their branch before embarking on an ambitious program of investment.The whole point of investing in branches is to improve the relationship with customers. So why not begin by understanding what customers really want? Nascent Digital (www. nascentdigital. com) is one of the market leaders in the field of combining market research with the design and development of technology. As a result, Nascent is able to create rich and relevant connections with customers from business applications to educational and socialize experiences. Having previously deployed experiences on triple industrious and touchscreen platforms such as iOS, Nascent has eased into working with the fashionable Windows Phone 7 and Slate devices.Nascent Labs prompt platform enables it to restlessly develop game-changing Windows Phone and Slate applications connected to Facebook, Twitter and other social networks. It has also played a major role in the development of Microsoft Surface technology. Bank customers seek digital experiences that are unique and engaging. To that end, Nascents unique design -led approach employs research, in-depth experience design and early rapid prototyping. These methods enable insights into how to realize the take up accomplishable digital customer experience. Nascent has partnered with Microsoft to envision the possibilities for Slate computing in the branch of the future. The design process and resulting prototype yielded insights into multiple new possibilities for customer interaction, relationship building, and ustomer-associate collaboration on everything from day-to-day banking to financial planning and advisory. Building on Windows Phone 7 Metro design language, Nascent was able to create a iodin digital interface that unifies the customer mobile experience with a collaborative gross revenue experience in the branch. By understanding customer needs upfront, banks can ensure their technology investments truly provide customers with the experience they desire. The bank branch of the future 9 Nascent begins by compiling and distilling exist ing research to form a basis for further inquiry. Industry best practices, existing published research and open access data are evaluated to focus their primary research.Focus groups and discussions led by expert coordinators are directed to reveal a deeper insight into the ideal digital experience for the user base. Once the research phase is eff, the experience design process begins to output a series of visual representations that can be easily transformed into a rapid prototype. Early prototyping enables innovation by bringing vivid experiences to life quickly for early user testing. (See Figure 3. ) By understanding customer needs upfront, banks can ensure their technology investments truly provide customers with the experience they desire, and thus are successful in empowering their branches with new technology.By reconciling customer needs with the banks own strategic direction the bank is more seeming to develop a business model that works. It may take more time to get it right first time, but in the long run it is a quicker and much more effective path to innovation. FIGURE 3 The Microsoft Nascent discovery process UNDERSTANDING THE CUSTOMER model DESIGN VISUAL DESIGN CONCEPT TESTING Secondary market research Primary market research Industry best practices brainstorm Wireframes Context design Information architecture Applied cognition Concepts Brand expectations Game-changing experiences Matched audiences Usability testing Final design blueprint 10The bank branch of the future ARTICLE The Fiserv perspective information convergence, interaction specialization and the importance of integrated channels The way financial institutions deliver services crossways banking channels is being deeply shock absorbered by two significant shifts. First, there is a demand for information convergence crossways channels. Consumers expect information about transactions completed via one channel to be readily accessible via another, and expect to be able to initiate a transaction in one channel and complete it in another. Second, there is a significant degree of interaction specialization taking place inwardly each channel.This interaction specialization is driven by the unique properties of each channel, which determine the primary activities conducted by means of the channel. Consumers have different habits and preferences about which channels they use to accomplish different financial tasks. For day-to-day needs, consumers broadly speaking prefer self-service via digital channels mobile and online respectively, the fastest growing channels. Fiserv characterizes interaction via the mobile channel as snacking. From a financial services perspective snacking encompasses frequent interactions that take less than 60 seconds. This includes tasks such as checking balances, receiving alerts and paying bills.One Fiserv financial institution client sees an average of 26 logins to mobile banking per user, per month establishmen t of their desire to consume financial services information in quick, frequent servings via the mobile channel. The bank branch of the future 11 The snacking analogy can be extended to the online channel and to the branch as well. The online channel serves up the financial equivalent of a square meal. Consumers go online when more look for and a slimly deeper level of engagement is required. This includes tasks such as comparing products, managing budgets and setting up preferences. These types of activities usually occur on a weekly or monthly basis.The branch is for fine dining, those special occasions where more personal service and in-depth interaction is required. This includes advisory services and overall relationship management, encompassing critical decisions that require cite and typically occur infrequently. As a leading global provider of digital channel solutions for financial institutions, Fiserv perceives that the shifts toward information convergence and interact ion specialization will create challenges for financial institutions. Delivering consistent information across channels will require back-end integration and real-time functionalities that are often not in place today.This will be further compounded by device proliferation, the rise of tablet computing and the blurring of lines between social media as an interaction platform and a transaction platform. In addition, interaction specialization will require that financial institutions tailor services for specific channels. This will most impact services delivered via the mobile device, as financial institutions will be expected to support mobileonly services such as far deposit contract for checks, location-based offers and contactless payments via near-field communications (NFC) technologies. Beyond self-service, the mobile device is also likely to become a banking platform for different types of interactions.In this context, financial institutions are under attack from nontradition al players such as mobile operators and consumer brands like Apple that would like to gain access to both customer information and transaction revenue. Financial institutions have much to consider when it comes to effectively serving consumers. An integrated channel strategy that incorporates the unique attributes of mobile solutions as part of an overall approach is a winning strategy. Consumers expect information about transactions completed via one channel to be readily accessible via another, and to initiate a transaction in one channel and complete it in another. 12 The bank branch of the future Recognition selling to a market of one T 84404893YHQAM235-4747343 ougher markets demand deeper, more profitable customer relationships.The need for banks to cope each customer as unique is more important. New technologies such as digital merchandising and prophetic analytics are devising it easier to sell to a market of one. Personal recognition When customers come into the branch it helps to recognize who they are and make that information available to key members of the branch. An RFID tag can be part of that process. Embedded in a debit or credit card, it can identify customers as in brief as they enter a branch. Through access to a customer relationship management strategy (CRM), bank staff can have complete access to relationship details to understand the next step in the customer story.But potential customers also visit branches, sometimes just by chance. These are opportunities that need to be captured. Applications that take into account branch staff to identify customers from personal IDs such as device drivers licenses or Green Cards, identify their credit history and then immediately direct them to a service opportunity, can replace paper-based processes that could take days, weeks or even months to complete, if at all. But technology is changing the concept of branch from a material to a virtual concept. Valerie King Through access to a CRM s ystem, bank staff can have complete access to relationship details to understand the next step in the customer story. Digital marketingDigital marketing is not just a technology, it is also a channel. In fact, it is many channels and embraces every aspect of digital media including TV, the Internet, mobile phones and social media, and even one-time(a) technologies such as radio. Whenever we click on a Web site, we create digital breadcrumbs that leave fag clues about our interests and preferences. They provide important intelligence about our real needs that marketing departments can move to. Recognizing a customer with his or her digital identity gives a bank the opportunity for new customer touch points, more targeted causas and services more closely aligned to customer needs.Thanks to this approach one financial institution in the U. K. generates more revenue through inward marketing than through any other channel. Social networking Social media generates conversations about brands and customer experiences that banks can follow. Airline companies in incident have been successful in using social networks as a customer service tool, allowing them to respond proactively to individual issues and concerns. The bank branch of the future 13 Some social networking sites Foursquare, Gowalla, Loopt and Facebook Places allow members to contribution their locations with other members. This can provide promotional opportunities for businesses.For showcase, each time someone checks in to a Hard stir coffee shop in the United States using Facebook Places, Hard Rock International donates a dollar to WhyHunger, a good-will fighting global poverty and hunger. The offer lasted through December 2010 an innovative way of gaining customers and promoting Hard Rocks commitment to philanthropy. Social networking is not just about customers. Its about staff as well. Enterprise social networking is a vital collaboration tool that enables bank talent to share companions hip and expertise across the bank. By its very nature, a branch is a decentralized part of the bank, but for many customers it is their most important interface with the bank.Keeping branch staff up-to-date with the latest products, services and regulations and making them feel an intrinsic part of a much bigger organization is essential for their morale and their ability to serve customers effectively. Social CRM To be successful, branches must be part of communities and communities can be both physical and virtual. Branches have been successful at integrating into physical communities, but less successful in not bad(p) virtual ones. Microsofts CRM system comes with a social networking accelerator that allows branch offers to follow the customer flick about service needs, reactions to products and feelings about the bank generally. Having a panoramic view of customers benefitly creates a competitive advantage.Microsoft Dynamics CRM, together with Microsoft partner Customer Eff ective, creates an innovational CRM solution leveraging Customer Effectives expertise in implementation and data integration. Why do so many CRM systems fail to equalise expectations? Because they are often stand-alone implementations and are not an integrated part of a complete customer relationship management solution linking customers, services, channels and systems to create a higher level of customer experience. To be successful, branches must be part of communities and communities can be both physical and virtual. 14 The bank branch of the future CASE STUDY CRM at Wintrust Financial and FiservWintrust Financial, a Chicago-based financial holding caller with more than $14 billion in assets, is implementing consecrate, its relationship sales management solution for financial institutions. En moment is built on Microsoft Dynamics CRM, so it is delivered as an filename extension of Outlook and integrates seamlessly with Microsoft Office applications, making it self-generat ed and easy to use. Using the EnAct solution from Fiserv, Wintrust Financials bankers will now have a holistic view of client relationships with access to sales productivity tools to execute local outreach programs, track relationship management and prospecting activities, and monitor opportunity pipelines.EnAct leverages Microsoft Dynamics CRM and is intentional to serve the distinct needs of banks primary lines of business Retail, Commercial and Wealth enabling Wintrust Financial to deploy a single, banking-ready CRM solution enterprise-wide. In implementing EnAct, Wintrust aims to better support collaboration across its organization, enabling referrals between divisions and facilitating team-based management of high-value relationships that span multiple business lines. We empower our fellowship banks to manage their clients and their markets locally, but we also want to leverage our combined scale and use the most advanced tools to serve our customers and grow our business, said Tom Ormseth, senior vice president, Wintrust Financial. As part of our expansion program, we determine the need for an enterprise customer relationship management solution and we chose EnAct because it provides us with specialized banking functionality on a versatile technology platform. We felt Fiserv was the right partner for us because they understood our business and had the experience and know-how to help us succeed. Wintrust Financial recognized that lack of user adoption is a common booby trap of CRM projects, so deep integration with Outlook was considered an important benefit of EnAct. Outlook is integral to bankers workday at Wintrust its where they manage their time, contacts, tasks and email communication with clients and colleagues.EnAct is built on Microsoft Dynamics CRM, so it is delivered as an extension of Outlook and integrates seamlessly with Microsoft Office applications, making it intuitive and easy to use and encouraging end-user adoption. By expanding its relationship with Fiserv, Wintrust joins a growing family of banks that are using EnAct to help execute their growth strategies, said David Dervish, managing principal, Customer apprise Enhancement, Fiserv. Wintrust Financial began its initial rollout of EnAct to a pilot group of more than 200 commercial bankers in December 2010 and is continuing implementation to a total of 1,400 users across 15 community banks as well as its various wealth management and specialized financial services divisions.To complement EnAct, Wintrust Financial also licensed Aperio Campaign Management and Aperio Customer Analytics. These solutions will help Wintrust analyze customer needs, identify opportunities and better manage centralized marketing campaigns that support local business development initiatives. The bank branch of the future 15 CASE STUDY Customer-centric at the core First Citizens National Bank and Harland Financial Solutions after(prenominal) 15 years of fighting for market share i n its Mason City, Iowa, home market, First Citizens National Bank (FCNB) was at a crossroads. We grew by mining market share from the larger players, explains Gregg Maakestad, FCNBs SVP and CIO. To bear on our head-to-head competitive status we needed to challenge and exceed their capabilities. But by 2009 FCNBs item treat and marketing customer information file (MCIF) solutions had become inadequate. Rather than install point-solutions, FCNB, a supplementary of First Citizens Financial Corp. ($1. 1 billion in total assets), determined that a core systems modernization would provide capabilities beyond just meeting current needs, Maakestad relates. A long-time user of the Phoenix System from Lake Mary, Fla. -based Harland Financial Solutions, FCNB nonetheless conducted due diligence in early 2009. With every contract cycle we look at all options, notes Maakestad. Because Harland is an open-systems marketer that shares all its database tables, we learned the strategic value of leveraging database tables, he adds. Therefore, we evaluate vendors willingness to share tables as a significant selection criterion. In fact, using the tables has become a critical best practice at FCNB. We use the tables to supplement vendor-supplied reporting and modeling, Maakestad explains. For example, when Reg E governing electronic fund transfers was updated, we calculated the impact on our organizations revenue immediately. And were doing the same now for the Durbin Amendment regarding debit card fees. gibe to Maakestad, Harlands latest platform, the Microsoft .NET-enabled PhoenixEFE Core, was the best solution for FCNB, leading to a late-2009 migration. Beyond our existing hardware, PhoenixEFE only required setting up two production IBM XM servers and two for disaster recovery, Maakestad reports. There were no showstoppers in the new core system just some minor items that Harland is improving. During 2010 FCNB added Harlands ActiveView Item Processing solution and th e vendors business intelligence tool, Touche analyser. And early this year the bank also integrated Touche Messenger, which draws intelligence from Analyzer for targeted multichannel marketing communications. The results have been impressive. PhoenixEFE has been key to achieving our current efficiency ratio of 47. 5 percent, says Maakestad. In addition, our item processing is simpler and our read rates have improved 15 percent. Also, the Touche solutions will be vital to moving our services per household from the current 3. 493 to our 2011 goal of 3. 516. The new platform also enabled FCNB to replace multiple daily ATM and debit card batch processes with near-real-time transactions. And, over the next couple of years, the modern core will allow the bank to add more online and mobile products to its existing offerings. As new opportunities mature, well jump into them with both feet, Maakestad says. In short, our new core platform has made us more customer-centric and more efficient, positioning us for future growth. CUSTOMER 16 The bank branch of the future Engagement creating memorable touch points C Microsoft Surface offers an eyecatching way of bringing hatful together to connect, learn and decide. It changes the way people collaborate. apturing customers attention inside or outside the branch is easier with memorable touch points. Distinctive interactive walls, obligate communicate and outstanding presentations all contribute to a better customer experience. Cool toys, personalized advice and cross-channel integration are all essential tools for capturing the customers attention.But they all have to work together and be targeted at customers who are likely to respond to them. Surface technology Exploring financial options with an advisor or with your partner? Or just browsing? Microsoft Surface offers an eye-catching way of shopping for services, bringing people together to connect, learn and decide. It changes the way people collaborate and connect. Microsoft Surface sees and responds to touch supporting more than 50 simultaneous inputs. This experience comes to life in the new 40-inch Surface that can be utilise as a table, on the wall, or insert in other fixtures or furniture. What-if scenarios are a lot more fun when you are working with Surface. But Surface can be more than just an eye-catcher.It can be a complete distribution channel in its own right, allowing customers another opportunity for self-service banking snacking in the branch or browsing the menu while waiting for a table for some cloistered dining advice. synergistic walls While customers wait in teller lines, wait for a financial advisor or just wander through branches, interactive walls can provide engaging interactions and compelling messaging for the financial shopper. browse for a car loan or a mortgage? Explore your options on an interactive wall. By touching it you can get the latest rates, look for financing options and do your homework before ma king a financial decision.Digital signage Wondering what the markets are doing? Curious about news and events in the community? Intrigued by a message from the chairman? Digital signage is a term use to describe the display of up-to-the-minute information on electronic devices such as plasma screens, LCD panels and projectors. Suppose its raining outside and there are more customers inside the branch and you want to change your electronic messaging to talk about new products and services. Managing the metadata in your digital signage system gives you that flexibility. The bank branch of the future 17 What if branches are serving Spanish-speaking customers in one location and English-speaking in another?Digital signage tools provide the flexibility to communicate different messaging to different markets. Digital signage can be used wherever there is a need to communicate to individuals or large groups of people. Wherever there is unchanging signage, there is potential to replace it with digital signage. (See Figure 4. ) Founded in 1991, Omnivex originally supplied software to financial calling floors to post buy/sell positions on large LED wallboards and drive financial tickers. Trading floors were quick to adopt large plasma displays to monitor television news reports. Omnivex recognized that these displays could also be used to help traders clearly spot market trends and developed applications to display data graphically.Building on its foundation of a data-driven system, the company moved into the broader digital signage market, where its software could be used to display real-time information to despatch decision-making by delivering targeted content to specific audiences. Financial institutions quickly adopted this medium within the retail banking industry, and we now see digital signage installations appearing more and more frequently in bank branches to communicate with customers and employees. collectible to its data-driven approach, Omnivex digita l signage software can deliver the right message to the right audience at the right time, helping to increase the effectiveness of communications. In branches, new products and services, promotional campaigns, market data, corporate communications and teaching materials can be delivered instantly, easily and memorably.In addition, digital signage can improve the customer experience by simplification perceived wait times, while entertaining and informing customers. Today, Omnivex software is used by many financial institutions around the world to power their digital signage networks. FIGURE 4 Microsoft partner Omnivex and digital signage 18 The bank branch of the future CASE STUDY Digital signage at Reflect Systems and outstrip Buy Banks have often been influenced by the success of retailers. Microsoft partner Reflect Systems is a leading, national full-service provider of in-store digital media solutions including digital signage, interactive applications and assisted shopping fea tures, mobile messaging, and in-store music.Reflect worked with Best Buy and its partners to deploy a solution that fit its vision for enabling networked digital media in all its stores, while adhering to business policies and preferred technology standards. Best Buy needed to improve the shopper experience with relevant and timely media content, showcase products and services with brand partners, and capture revenue opportunities available by leveraging the platform as a new digital media network that connects with loyal Best Buy shoppers. After methodical lab testing and pilot programs, Reflect active ReflectView, its industry-proven scalable software solution, to meet the challenge of managing and distributing large amounts of digital media across Best Buys interlocking network of more than 1,100 locations across the United States.Through its flexible content management, programming, distribution and monitoring features, ReflectView allowed Best Buy to control the specific mess age played in each store at any given time, in any specific region from a centralized system requiring minimal working(a) management. Today, Best Buy has increased its in-store digital media footprint to include television and computer displays in the electronics department, deterrent aisles and music via in-store audio systems. Best Buy has a fast-paced business environment that requires a high-voltage approach to supporting new in-store initiatives. Reflect continuously strives to provide a platform approach for in-store media, and maintains a partner-focused solution set that provides choice, performance and measured results.Through its flexible content management, programming, distribution and monitoring features, ReflectView allowed Best Buy to control the specific message played in each store from a centralized system requiring minimal operational management. The bank branch of the future 19 FIGURE 5 Financial benchmarking with muckle Next-generation banking Next-generat ion ATMs, line busting, interactive walls and smartphone channels all converge together in a unique customer experience that targets customers from Gen Y to baby boomers. A common user interface is key to a compelling customer experience that recognizes the branch as a focal point in building abide customer relationships. The technology of Kinect can provide in-branch entertainment as well as more engaging customer interactions replacing transactions with conversations.Personal financial management tools Technology has made it easier for customers to do research and finalise issues online. Branches are a perfect place for that research to take place. If the customer is already in a branch and wants to do some research or use automated tools to perform financial calculations, budgeting and planning, resources should be available for independent and banker-assisted research and planning. Options to consider include the following A dedicated bank of PCs for independent research Int eractive walls to explore financial options Surface technology to explore different products and solutions Bundle is an example of a personal financial management tool eveloped by Citi, Morningstar and Microsoft, which allows consumers to compare how others spend their money. (See Figure 5. ) FIGURE 6 At Banco do Brasil, a customer explores financial options through an interactive wall. 20 The bank branch of the future Private, face-to-face advice Have tablets replaced desktops or have they just charge them? By deploying both, branches have more options for face-to-face advice. It can vary from line busting to a confidential meeting with a private banking client. Technology may be needed to support those discussions, accept deposits, sign documents or review financial plans. Tablet technology can play an important role, and there are many providers to choose from.Companies like Motion Computing, HP and ExoPC offer slate models in addition to the iPad. Motion Computing, in particul ar, specializes in manufacturing tablets designed for the needs of individual industries. (See Figure 7. ) FIGURE 7 Customized industry devices from Motion Computing Windows slates combine the ability to consume information and present it to clients with the full production capabilities of a PC. They are also secure and interoperable with other technologies. Incorporating your tablet solution into a complete branch experience demands the ability to interact with other devices, applications and systems. Bankers and financial advisors dont just meet clients in the bank. They may also visit them in the home.The concept of a mobile sales force attached to the branch is not a new one. But for such a team to be effective it will need to be empowered by technology. Mobile technology can be used for customer presentations, the review of different products and services and the completion of documentation. (See Figure 8. ) FIGURE 8 A selection of Windows slates (in order of appearance, the As us E121, Motions CL900, the HP 500, the ExoPC and the Fujitsu-STYLISTIC Q550 Slate PC) The bank branch of the future 21 Customer use scenarios Microsoft Surface at Barclays Bank and Royal Bank of Canada Barclays has opened a new flagship branch at Piccadilly Circus in London.The bank describes the project as the first brand concept branch in the UK, covering 8,000 square feet of retail space over three floors. With the opening of the branch, Barclays became the first bank in Europe to pilot Microsoft Surface. excerpt was engaged to create a Surface program that allows users to grab digital content with their hands and sail information about Barclays Premier banking offering with simple gestures and touches. Royal Bank of Canada has partnered with Microsoft to provide customers with an interactive banking experience through Surface. The implementation of Surface creates a fun and interactive way for RBC to inform its customers about their financial services.RBC found that giving cu stomers a way to learn about their financial goals through interactive applications, such as Infusions application for Surface, is a great way to ease customers into initiating conversations about complicated financial topics. Client communications When was the last time any of us wrote or current a letter? The way we communicate is undergoing profound transformation. Whether we communicate through laptops, slates or smartphones, electronic communication is becoming pervasive. In this new chapter of communications there are risks and rewards implying profound changes in the way we develop, share and exchange information, even the way we work and play. The rewards are clear richer and more frequent client conversations, better research, more informed insight, more accurate presentations.But the risks can be great as well. The information we create can be instantly shared through flash drives and across the Internet. Clients, markets and regulators are holding us more accountable fo r what we say and how we say it. The one-off presentations produced in local offices that differ across the firm should become a distant memory particularly since even small differences in client communications can have regulatory implications, dilute brands and confuse clients and markets. The world is changing at a dizzying rate. Client communications must be timely to add value, but with current technology it can also be too costly and time consuming to develop frequently.A 100-page pitch book for a key client meeting may require data and content from many sites, sources and databases, much of it captured manually. What if the process could be automated, brand managed centrally and compliance built into the process in advance? Microsofts partner Xinnovation has the solution the ability to produce automated presentations within minutes that are compliant with regulations and firmwide brand management standards. Whether we communicate through laptops, slates or smartphones, elect ronic communication is becoming pervasive. 22 The bank branch of the future CASE STUDY Streamlining client communications at faithfulness Xinnovation streamlined Fidelitys 22-day data intensive, increasingly complex investment review process into just a few simple hours.Quite impressive when you consider these specialized, targeted presentations can run up to 100 pages chock full of dynamic charts and graphs, which draw from backend data systems. (See Figure 9. ) Fidelity turned to Xinnovation and its Web-based, Microsoft-standard XiDocs document automation platform. XiDocs includes easy-to-use features that enable rapid development of solutions. XiDocs features include content management, configurable assembly and make of highly customized Microsoft Word, PowerPoint and PDF documents, data-driven Excel charts and graphs, enterprise content, and workflow all living natively inside Microsoft Office SharePoint Server.It gets better Fidelity and Xinnovation implemented a direct XML connection with Fidelitys print and fulfill vendor to maximise workflow capabilities. And if that is not enough smart for one day, Xinnovations technology enables Fidelity to provide its reports through its client portal and extend a greener process. FIGURE 9 Automated document generation with Xinnovation The bank branch of the future 23 Origination developing new business opportunities O ne of the toughest challenges banks face today is origination. This is particularly true in a low-growth environment. So it is important that banks have a clear understanding of where their opportunities lie.Most banks have a marketplace that can be split into three parts Customer enthusiasts customers who are enthusiastic about their relationship with the bank and want to expand it Customers on the fence customers who are indifferent to their relationship with the bank but could be swayed one way or another disgruntled customers customers who are about to leave and are waiting for the rig ht opportunity to move on. Against this mix there are further segmentation opportunities. The challenge is to find the right marketing and distribution mix for each customer segment. For example, Bank of America identified the mass affluent as a must-win strategic market.The bank worked with Merrill Lynch to target services to a specific part of its target the mass affluent which it outlined as customers with investable balances of about $200,000 or more, but not superwealthy. The bank reasoned this group of customers were occasional investors rather than active traders and so offered them 10 free trades a year to boost their loyalty and deepen their relationship. Where does the branch fit in to this mix? Should it be the preserve of a few customers, or is there a way for it to play a role across all sectors of the market? One way of attack this is to think of the branch as a networking opportunity, emphasizing its social rather than its transaction role.Targeting families, small businesses, emerging entrepreneurs or local clubs and associations reinforces the role of the branch as a focal point for the community. Financial seminars targeted at local entrepreneurs, pension advice for boomers, and financial services for college students are examples of programs that bring traffic to the branch and reinforce its role as a critical part of the local economy. With branch traffic up, the next step is to make it easier to open accounts, browse new services or get financial advice. Increasing self-service facilities not just ATMs, but interactive walls and Surface devices as well within the branch is one way of achieving this. But technology doesnt have to exclude the human element.Enabling bank staff to assist customers through video links on next-generation ATMs and other self-service channels reinforces the relationship between banker and customer rather than excluding it. 24 The bank branch of the future Some of the tools to consider include the following T argeting customers through predictive analytics Reaching out to customers can be costly for some(prenominal) reasons. Along with more traditional campaign costs, companies often fail to take into consideration any negative impacts that a campaign may have in terms of driving customers away or driving customers to consider alternative offers. Predictive analytics plays a critical role in minimizing negative campaign responses and ensuring that campaigns are targeted and effective.This also includes maximizing opportunities for cross sell and retention in the key instances when customers are engaging via inbound channels. Gathering a single view of your customers across all touch points is a critical step in understanding your customers needs, and delivering the best possible customer experience to drive customer value in the long term. Whether customers are online, talking to a call center or in the branch, it is important to have a clear picture of who those customers are, and wha t particular offer, be it cross sell or retention, is best to present them at that moment. One insurance company found that by optimizing customer nteractions in this manner it was able to sell more through inbound channels than through all other channels combined. Managing customers time when they are in the branch By enabling branch staff to reduce queuing at teller counters they can also engage with customers and explore other service opportunities. A handheld computer device can accelerate deposits, account inquiries, transfers and other simple transactions. Line busting can turn unproductive wait times into business opportunities. Scheduling and calendaring link to digital signage solutions can manage appointments with branch staff and expectations with customers who might otherwise be unclear when they would be seen. gt Making it easier to access new services through paperless banking If a customer wants to open a new account or obtain a new line of credit but has to wait for the paperwork to be completed, that just adds time and cost to the onboarding process and delays revenue realization. It can also frustrate customers and cause them to look elsewhere to meet their needs. Years of paper-based processes may need to be revisited to improve customer experience, improve margins and increase security. Marketing through self-service transactions Originations should be possible within the branch through any channel, whether through a bank of PCs, through next- generation ATMs, or call centers accessed from within the branch. Surface devices and interactive walls can be both a source of information and origination channels.Self-service channels are mainly for existing customers, but it should be just as easy for new customers to become activated through them as well. Banker-assisted originations Often completed through paper documents, the origination process can involve several stages, and many documents account opening forms, signature cards, loan agreements but if converted Gathering a single view of your customers across all touch points is a critical step in understanding your customers needs, and delivering the best possible customer experience to drive value in the long term. The bank branch of the future 25 into electronic form can be completed quickly and easily but still securely while the customer remains in the branch.This shortens the origination process considerably. The problem is how to accomplish this in a secure way. The growth in eSignature technology and supporting regulation (the ESIGN Act and UETA) makes this a much easier option for many banks. Tellers as relationship managers Probably the one personal contact the bank customer has the most frequent engagement with is the bank teller. Yet this is the one interaction we want to get over with as quickly as possible. A friendly interaction with a teller can play an important part in origination. But for that to happen the role of tellers within the branc h must change and they must be managed very differently as a resource.The first challenge is to manage traffic within the branch to reduce the pressure of a short and pressured interaction. Secondly, tellers productivity has to be improved by giving them access to technology that enables them to process transactions more easily. Finally, tellers should know who their customers are, reinforcing the importance of the personal connection. Branch recognition technologies and access to CRM systems can help tellers play a pivotal role in strengthen customer relationships. CASE STUDY Predictive analytics at U. S. Bancorp with Portrait Software Pitney Bowes Business Insight (PBBI) is a Microsoft Gold partner that leads the pack in the field of predictive analytics. The Consumer Direct division of U. S. Bank, a marcher of U. S.Bancorp, found that its traditional marketing campaigns were not delivering the returns they once were, and was failing to target customers with the most relevant mess age. After two successful trials, U. S. Bank implemented PBBIs Portrait Uplift solution and has since achieved significant gains a 300 percent lift in additive revenue together with reduced costs through lower mailing volumes. U. S. Bank is just one of several customers in different industries that have found PBBIs Portrait suite of analytics solutions to be of immense value. Selling to a market of one is a challenge across all industries, financial services in particular. U. S. Bank has achieved significant gains in incremental revenue together with reduced costs through lower mailing volumes. 26 The bank branch of the futurePROFILE Secure paperless banking with digital signature from Topaz and AssureSign We are all familiar with digital signature in the retail environment, even in insurance. A number of leading banks have begun to adopt the process, but in financial services the technology of digital signature is still in its infancy. Whether we are opening a bank or brokerage account or applying for a loan there is usually a lot of paper involved. But paper takes time to process, must be stored and can easily be lost. Plus we need a more reliable way to ensure documents have been signed and stored as securely as possible. Is it time for a fresh approach? Many businesses around the world are saving money by replacing paper processes with electronic signature and document solutions. In the U. S. the ESIGN Act gives electronic signatures the same legal significance as paper signatures, provided the customer consents to the process. Various forms of eSignature exist from a simple click to sign to robust biometric signatures written on electronic signature pads that record the specific shape and sequence of the signature, its strokes and direction of loops, and detailed timing of each part of the signature used in the signing process. Another form of electronic signature that does not incorporate biometrics the digital signature uses asymmetric cryptograph y to ensure documents can be protected once they are signed and any changes related back to the original signer.The technology of eSignature and digital signatures is now available across multiple devices and can be deployed locally or at an enterprise level. Mainly deployed in the public sector and in the retail, healthcare and insurance industries, this technology has already been adopted by a number of leading banks to improve the speed and security of banking document processes. Such efficiencies are leading the charge in enabling bank branches to become paperless. AssureSign (www. assuresign. com) and Topaz Systems (www. topazsystems. com) are leaders in the field of electronic signature and document management. FIGURE 10 Topaz eSignature software technology can be deployed across the Web and directly with its biometric electronic signature pads. Biometric signatureAssureSign is a software-as-a-service (SaaS) or on-premise electronic signature solution that allows signers to ex ecute documents via web portal interactions, captures the act of signing, email invitation or in-branch scenarios. AssureSign easily integrates with existing not an image of a signature banking and financial services applications to provide a paperless document execution process. AssureSign can also work alongside Topaz solutions to dyad the gap between in-house and external web-based signing requirements in a FIGURE 11 A biometric signature using AssureSign single platform. AssureSign solutions offer a variety of front-end signer authentication options as well as Electronic Signatures in Global and National Commerce Act (ESign Act) and Uniform Electronic Transactions ACT (UETA) compliant signing processes.Topaz Systems offers a broad array of electronic signature pads for use in teller- and nonteller-related transactions, along with bundled software, authentication and server tools, and plug-ins. Topaz solutions provide the capability for corporations to deploy their technology ac ross any Web-based service and on any device, whether tailor-made or generic. Topaz signature pads are available in cloak and monochrome versions, wireless versions for use in drive-up teller environments, and pads that capture simultaneous electronic and paper signatures up to full legal clipboard size. (See Figures 10 and 11. ) The bank branch of the future 27 CASE STUDYIncentives at Bank of the West and Varicent If branch staff are to play a different role in the branch of the future, the question that arises is whether they should be compensated differently. To meet this challenge, Bank of the West chose Varicent SPM to manage incentive compensation and sales performance throughout the organization. Varicents SPM solution was chosen by Bank of the West because of its ability to provide a single system for all compensation plan management that easily integrates with all other existing systems within the bank. Varicent is an industry leader in providing incentive compensation (IC M) and sales performance management (SPM) solutions.Bank of the West, based in San Francisco, offers a full range of business, corporate, personal, trust and international banking services and operates more than 700 branch locations and commercial banking offices in 19 Western and Midwestern states. Varicents solution will provide us with the unique ability to more effectively analyze important compensation and sales performance metrics. We will also use Varicent to improve the accuracy of our forecasts and to create effective sales incentive models that can drive the right behavior and maximize our future performance, said Donald Duggan, senior executive vice president and CIO at Bank of the West.Varicents approach offers a lower total cost of ownership than alternative solutions and in-depth sales analytics to help understand performance, allowing for accurate forecasting and modeling of future plans. Streamlined administrative processes include the managing an