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Six Challenges Six Challenges Facing Banks Facing Banks Presented by: Amir Hameed IP Telephony Practice Leader

Six Challenges Facing Banks

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Six Challenges Facing Banks. Presented by: Amir Hameed IP Telephony Practice Leader. Enhance the Franchise. Increase Revenue. Reduce Cost. Enablement. Mitigate Risk. Financial Services Industry What is Everyone After?. Focus on FS Avaya’s Financial Services Practice. - PowerPoint PPT Presentation

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Page 1: Six Challenges Facing Banks

Six Challenges Six Challenges Facing BanksFacing Banks

Six Challenges Six Challenges Facing BanksFacing Banks

Presented by:

Amir Hameed IP Telephony Practice Leader

Page 2: Six Challenges Facing Banks

2© 2005 Avaya Inc. All rights reserved.

Financial Services IndustryWhat is Everyone After?

Increase Revenue

Reduce Cost

Enhance the Franchise

Enablement

Mitigate Risk

    

Page 3: Six Challenges Facing Banks

3© 2005 Avaya Inc. All rights reserved.

Focus on FS Avaya’s Financial Services Practice

Understand the Vertical• What are key industry trends?• What are perceived opportunities & risks?• What are ‘hot’ issues in the vertical market?

Facilitate Communication Internally• Aggregate customer requests

• Prioritize vertical requirements

• Help drive the concept-to-market process

Enhance the Portfolio• What do FS customers need

to be successful?

• Are there opportunities to adjust or expand Avaya’s portfolio of solutions?

Facilitate Communication Externally

• Frame Avaya solutions in business terms

• Help customers achieve their business goals

• Help Avaya earn the right to be a ’trusted partner’

Page 4: Six Challenges Facing Banks

4© 2005 Avaya Inc. All rights reserved.

As Ranked by Fortune Magazine* Avaya Presence in Top US Bank Call Centers

* www.fortune.com/fortune/subs/fortune500/customranking Categorized by Fortune as ‘commercial banks’ - Apr-2005

Rank in Industry Company

Revenue ($ millions)

Call Center Provider

1 Citigroup $108,276 Avaya2 Bank of America Corp. $63,324 Avaya3 J.P. Morgan Chase & Co. $56,931 Avaya4 Well Fargo $33,876 Avaya5 Wachovia Corp. $28,0676 U.S. Bancorp $14,706 Avaya7 MBNA $12,327 Avaya8 Capital One Financial $10,6959 National City Corp. $10,560 Avaya

10 SunTrust Banks $7,823 Avaya

Page 5: Six Challenges Facing Banks

5© 2005 Avaya Inc. All rights reserved.

As Ranked by Fortune Magazine* Avaya Presence in Top US P&C Insurance Call Centers

* www.fortune.com/fortune/subs/fortune500/customranking Categorized by Fortune as ‘insurance: P&C (mutual) and “insurance: P&C (stock) - Apr-2005

Rank in Industry Company

Revenue ($ millions)

Call Center Provider

1 AIG $98,610 Avaya2 Berkshire Hathaway - Geico $74,3823 State Farm $58,819 Avaya4 Allstate $33,936 Avaya5 St Paul Travelers $22,934 Avaya6 Hartford Financial Services $22,693 Avaya7 Nationwide $20,558 Avaya8 Liberty Mutual $19,754 Avaya9 Loews - CNA $14,584

10 Progressive $13,782 Avaya

Page 6: Six Challenges Facing Banks

6© 2005 Avaya Inc. All rights reserved.

Business Goals Global Banks

Business Trends• Channel Optimization

• Channel integration

• Differentiation Strategies

• Up-sell, cross-sell

• Customer retention

“Avaya focused on the business problem, and then on full delivery fromsolution design to deployment”

Page 7: Six Challenges Facing Banks

7© 2005 Avaya Inc. All rights reserved.

Business Goals Global Banks

IT Hot Buttons• Efficiency

• Drive down complexity

• Effectiveness

• Innovation

• Building block strategy

“Avaya focused on the business problem, and then on full delivery fromsolution design to deployment”

Page 8: Six Challenges Facing Banks

8© 2005 Avaya Inc. All rights reserved.

TrendsSix Challenges Facing Banks

123456

Become a Distribution Expert

Optimize your Distribution Channels

Integrate your Distribution Channels

Embrace a Differentiation Strategy

Measure & Analyze Progress

Delight Your Customer

Page 9: Six Challenges Facing Banks

9© 2005 Avaya Inc. All rights reserved.

Channel Strategy Cross-Selling: “The Holy Grail”

“Wells Fargo reckons that the average American household has 16 different financial products. The bank supplies just 4.3 to its average customer. "On a scale of 1 to 100," says Mr Kovacevich, "we're only at 20-25." Only 11% of banking customers buy insurance from the company. Even though Wells Fargo issues more mortgages than anyone else in the United States, only 16% of its customers have a mortgage with the bank.

On the other hand, Wells Fargo sees its own customers as a great growth opportunity--better than opening new branches or buying other big banks, as its rivals are doing. Mr Kovacevich says that 80% of the bank's growth comes from selling additional products to existing customers. The cost of selling to someone already on the books, he says, is one-tenth that of attracting a new customer .”

“Trust Me, I’m a Banker”April-2004

Page 10: Six Challenges Facing Banks

10© 2005 Avaya Inc. All rights reserved.

Vertical Solutions A Crazy Idea – Right?

Interactionmanagement

converged network

On Demand Branch-based Agents

Inbound customer contacts can be routed to branch-based personnel

according to skill set, availability or prior contact history

email

self-service

proactive contact

web

voice

On DemandResident Expert

Personnel at other locations can be leveraged as expert resources

On Demand Contact Center AgentContact Center-based agents can provide expertise and overflow for branch-based customer service personnel

Page 11: Six Challenges Facing Banks

11© 2005 Avaya Inc. All rights reserved.

Business Goals Global Banks

Goals• Originally... Automate routine inquiries

• Ultimately... Front-end all calls and route them using IVR technology

• Return dollars to the business after 15 months

• Estimated savings for 2006: $8m

• Benefits: end-to-end tracking of calls

Page 12: Six Challenges Facing Banks

12© 2005 Avaya Inc. All rights reserved.

Business Goals Global Banks

Page 13: Six Challenges Facing Banks

13© 2005 Avaya Inc. All rights reserved.

Best PracticesShrink Attrition, Grow Retention

Profile

US regional bank with 1200 branches in seven states.

Goals

‘Get better faster’

Eliminate the ‘I never hear from my banker’ complaint

Identify ‘at risk’ customers

Focus on ‘on-boarding’ of customers

Page 14: Six Challenges Facing Banks

14© 2005 Avaya Inc. All rights reserved.

Best PracticesShrink Attrition, Grow Retention

Philosophy

Focus on….

Improved service & customer satisfactionwhich leads to

Retention of customerswhich leads to

The right to ask for additional businesswhich leads to

Deepening of our relations with themwhich leads to

Increase in Revenues

Page 15: Six Challenges Facing Banks

15© 2005 Avaya Inc. All rights reserved.

Best PracticesShrink Attrition, Grow Retention

Source: Gartner Group

Page 16: Six Challenges Facing Banks

17© 2005 Avaya Inc. All rights reserved.

Sales Management Enabling Your Workforce Segments

Mo

bil

ity

Transaction Margins

Mobile/Remote

High

Fixed

Low

“Mobile Revenue Generators”

Bank Executives

Branch ManagersTellers

In-BranchConsultants

RegionalManagers

Page 17: Six Challenges Facing Banks

18© 2005 Avaya Inc. All rights reserved.

Best Practice #1

The Extended Contact Center

Breaking down infrastructure barriers and more tightly integrating the contact center

with the rest of your business

Page 18: Six Challenges Facing Banks

19© 2005 Avaya Inc. All rights reserved.

Inconsistent Customer ExperiencesInconsistent Customer ExperiencesHigher Total Cost of OwnershipHigher Total Cost of Ownership

Lower Business ProductivityLower Business Productivity

Inconsistent Customer ExperiencesInconsistent Customer ExperiencesHigher Total Cost of OwnershipHigher Total Cost of Ownership

Lower Business ProductivityLower Business Productivity

InboundVoice

Quality Monitoring and

Recording

Management andAdministration

CRM Applications

Reporting

OutboundDialer

Quality Monitoring and

Recording

Management andAdministration

CRM Applications

Reporting

IVR & SpeechApplications

Quality Monitoring and

Recording

Management andAdministration

CRM Applications

Reporting

E-Mail

Quality Monitoring and

Recording

Management andAdministration

CRM Applications

Reporting

Web

Quality Monitoring and

Recording

Management andAdministration

CRM Applications

Reporting

Messaging

Management andAdministration

Reporting

Conferencing

Recording

Management andAdministration

Reporting

Yesterday’s Call CentersIsolated and fragmented applications

Page 19: Six Challenges Facing Banks

20© 2005 Avaya Inc. All rights reserved.

The New Operating ModelConverged Networks, Consolidated Servers, and Extended Operations

Media Gateway

Media GatewayMedia Gateway

IVR

CTI

Messaging

Call Accounting Contact Center Reporting

Multi-Media

Systems Management

PSTNPSTNPSTNPSTN

8700 Media

Media Gateway

IP WANIP WANIP WANIP WAN

Regional Offices/Contact

Center

Offshore/Nearshore Offices and/orCall Centers

RemoteOffices

Small Office,Home Office,

TelecommuterAgents

PSTNPSTNPSTNPSTN

PSTNPSTNPSTNPSTN

PSTNPSTNPSTNPSTN

ISPISPISPISP

PSTNPSTNPSTNPSTN

Page 20: Six Challenges Facing Banks

21© 2005 Avaya Inc. All rights reserved.

Value Created• Tens of $millions identified as

cost of “not answering”• Consistent company brand image• Efficient blending of contact

center to support local offices• Increased agent productivity• Teamwork across offices & HQ• Lower TCO, Enhanced network

“Avaya focused on the business problem, and then on full delivery fromsolution design to deployment”

Case StudyThe Case of the Empty Office

Large US Insurance Company

Page 21: Six Challenges Facing Banks

22© 2005 Avaya Inc. All rights reserved.

Best Practice #2

Creating the customer moment of truth

Contact center matchmaking: right customer, right action, every time

Page 22: Six Challenges Facing Banks

23© 2005 Avaya Inc. All rights reserved.

Riding the Contact Center Waves

1970 1980 1990 2000 2010

Eff

icie

ncy

Fo

cus

Cu

sto

mer

s A

s T

ran

sact

ion

s

Eff

ecti

ven

ess

Fo

cus

Cu

sto

mer

s A

s A

sse

ts

Early Call CenterCustomer satisfactionEarly Call CenterCustomer satisfaction

Efficient Call CenterSkills, CTI, Agent productivityEfficient Call Center

Skills, CTI, Agent productivity

Help DeskHandle calls quicker

Help DeskHandle calls quicker

Internet BoomOne-to-one, multimedia

Internet BoomOne-to-one, multimedia

Post-Internet TroughCost savings, fewer agents, outsourcing

Post-Internet TroughCost savings, fewer agents, outsourcing

Best PracticeContact Centers

Balance efficiency/effectivenessLeverage skills everywhere

Enhance customer experiences

Best PracticeContact Centers

Balance efficiency/effectivenessLeverage skills everywhere

Enhance customer experiences

Page 23: Six Challenges Facing Banks

24© 2005 Avaya Inc. All rights reserved.

AGENT SKILLS REQURIEDNEW HIRE HIGHLY SKILLED

CU

ST

OM

ER

VA

LU

EL

OW

HIG

H

Least ProfitableCustomers

Efficient Service

Automation

Most ValuableCustomers

“Growth Potential”Customers

Customer Segmentation StrategyLeveraging different resources for different customers

Provide Each Customer with the Appropriate Service

AUTOMATION POTENTIALEFFICIENCY PROACTIVE CONTACT

Cross-sell, up-sell

Skilled Agents

Automate for customer

convenience

Loyalty programs

Personal Account Managers

Skilled Sales Agents

Automate Transactions and Proactive Contact

Six Sigma

Page 24: Six Challenges Facing Banks

25© 2005 Avaya Inc. All rights reserved.

Differentiate DifferentiateDifferentiate

Six SigmaGetting to Differentiation

Flatten-Consolidate-Extend Systemize-Globalize Differentiate

Business Impact:

Savings

Revenue

Retention

Loyalty

Technology Continuum

Business as Usual

COMMUNICATIONS INFRASTRUCTURE

AGENT UTILIZATION

CUSTOMER STRATEGIES

ImpactImpact

Impact

Flatten – Consolidate - Extend

Systemize - Globalize Systemize - Globalize Systemize - Globalize

Flatten – Consolidate - ExtendFlatten – Consolidate - Extend

Page 25: Six Challenges Facing Banks

26© 2005 Avaya Inc. All rights reserved.

Channel Strategy Differentiating

Page 26: Six Challenges Facing Banks

27© 2005 Avaya Inc. All rights reserved.

Best Practice #3

Building your brand through effectiveself-service

Striking the balance of self service with live service to improve the customer experience

equation

Page 27: Six Challenges Facing Banks

28© 2005 Avaya Inc. All rights reserved.

Speech Self Service BenefitsIncreased Capabilities, Lower Cost, Higher Satisfaction

cost per call

Touch-tone System

$0.25-$0.5

Touch-tone System

$0.25-$0.5

Offshore Agents$2-$3

Offshore Agents$2-$3

Agents$5-$6

Agents$5-$6

SpeechApplications

$0.5-$0.9

SpeechApplications

$0.5-$0.9

serv

ice

com

ple

xity

Page 28: Six Challenges Facing Banks

29© 2005 Avaya Inc. All rights reserved.

The Expanding Role of Speech

Replaces live agent support – Extends service support to 24x7x365– More responsive and personalized service

Automates simple, repetitive requests– Account balances, Order or claim status

Automation of more complex transactions– Change of address, IT help desk password resets– Alpha/numeric structures, stock symbols– Secure voice print identification– Natural language call routing

Automation of internal business processes– Employee self service, trouble ticket reporting

Automation of demand chain / distribution– Inventory, availability and price checks, regular re-orders

Automation of proactive outbound contact– Product recalls– Purchases ready for pickup– Payment verification

Interactive Response

Page 29: Six Challenges Facing Banks

30© 2005 Avaya Inc. All rights reserved.

“(Agents) are more fulfilled and helping people that need to be helped instead of dealing with things like address changes or membership renewals. And we are able to provide a better level of service."

Joe Alessi, vice president of marketing and IT

Value Created• Speech enablement of 15-20% of

incoming calls

• 20% improvement in self service call completion rate

• Over $469,300 annual savings

• Increased up-sell, cross-sell

• Improved agent retention

Case Study Driving Revenues & Improving Customer Responsiveness

Page 30: Six Challenges Facing Banks

31© 2005 Avaya Inc. All rights reserved.

Intelligent CommunicationsWhat is Your Strategy to Delight Your Customers?

Speed of Transactions?

Personalized Service?

Pro-Active Contact?

Price?

Product Depth & Breadth?

Some of the Above

All of the Above

None of the Above

Regardless…. Banks seek a high velocity business with productive employees

Page 31: Six Challenges Facing Banks

32© 2005 Avaya Inc. All rights reserved.

Intelligent CommunicationsEnhanced Customer Interactions

Self-Service “Kiosks”

Customer can look for specific bank-related products or services via a web-enabled IP phone.

“Click-to-call” capability can be configured to connect the customer with bank associates in a contact center.

Direct Frequently Asked Questions to a speech enabled IVR for virtual agent response.

Reduce time devoted by branch staff to routine Q&A.

Enable introduction of new products and services.

Request a callback or email for more information.

Page 32: Six Challenges Facing Banks

33© 2005 Avaya Inc. All rights reserved.

Self-Service Kiosk with Video Softphone Click to video conference with an “expert”

Example• Customer browses Mortgage page, clicks on icon for a video conference, Avaya finds appropriate and available resource • Expert could be in the Contact Center or in another branch• Other service examples: loan originations, investment services, credit card applications.

Page 33: Six Challenges Facing Banks

34© 2005 Avaya Inc. All rights reserved.

PBX

Answers the call

Transfers the call

Laura Jones, please!

1

2

3Can be transferred to ANY number

Internal

– Office extension

– Pilot number

External: Local, Long distance, Cell, Pager, Overseas

Increasing Revenues, Improving ResponsivenessIncreasing Revenues, Improving ResponsivenessYou want them to be pleased they called…….

Page 34: Six Challenges Facing Banks

35© 2005 Avaya Inc. All rights reserved.

Managing Complexity

Email

Instant Messaging

Voice Messaging

Unified Communication

Telephony

Contact Centers

Mobility & Softphone

Conferencing

Collaboration

Page 35: Six Challenges Facing Banks

36© 2005 Avaya Inc. All rights reserved.

Managing ComplexityComm. Applications: A Collaborative Framework

VideoVideo

Video BridgeVideo Bridge

StreamingStreaming

WebCamWebCam

Room Systems

PresencePresence

IMIM

Ad-hocAudio Conf

Ad-hocAudio Conf

Converged

Collaboration

Converged

Collaboration

MessagingMessaging

AvailabilityAvailability Instant

Conf

InstantConf

Social Networking

Social Networking

MultimodalSessions

MultimodalSessions

Aud

ioA

udio

Ad-hocAudio Conf

OperatorManaged

Audio Conf

Electronic

MailElectro

nic

Mail

fax

email

Voice Mail

Phone Book

Team Team

Portals

Workflow

DistributedApps

Document Mgt

Calendars

WebConference

WebConference

Directory

App Sharing

Whiteboard

Chat

Business Process

Converged Communications-EnabledEnterprise Collaboration

CRMCRM ERPERPSSASSASCMSCM

Web Services Services-orientedArchitecture

Migration to IP as underlying network

Page 36: Six Challenges Facing Banks

37© 2005 Avaya Inc. All rights reserved.

Presentation Title:Six Challenges Facing BanksSix Challenges Facing Banks

Presented By:

Amir Hameed IP Telephony Practice Leader