Market Trends and Business Drivers
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The document discusses several trends affecting the financial services industry, including increased consumer technology adoption, changing customer demographics, and the rise of digital channels. It notes that while these trends create both challenges and opportunities for financial institutions, they must address how to scale operations while maintaining high customer satisfaction, efficiently allocate resources, and incorporate new digital capabilities into their operating models. Specific initiatives discussed include using video to deliver specialized expertise remotely, a example of using video at bank branches, and Cisco's collaboration investments and productivity benefits for organizations.
Market Trends and Business Drivers
- 1. Market Trends and Business Drivers Geoff King and Mike O’Keefe Business Transformation Financial Services
- 2. LIC to Sell Policies Online Is there Money in the Mobile Wallet?: America's Greenest Banks
- 3. Megatrends at Work Regulation World of “Now” Financial Consumer in Control Generational Shifts Services Transformation
- 4. The Consumer in Control - A Challenge & Opportunity • Consumer technology adoption = increased competition… – Bankrate: 6.5 million visitors per month – MoneyAisle: loan auctions – Sheila’s Wheels – online insurance for women – Tesco – Loyalty program into Financial Services • …but also creates opportunities for FSIs: – USAA: self-service Social – Chase: checks via iPhone Networking – MasterCard: “Overwhelming Offer” Source: ABI Research, 7/10, 3/10; Chicago Tribune, 7/10
- 5. Changing Customer Demographics + Digital Technologies = Multi-Channel Home … Branches Mobile Branch Contact Customer Center
- 6. Channel Usage – Changing Patterns and Mix • Industry wide average sales per branch have decreased by over 30% in recent years while staffing levels in most branches have remained the same • Multi-channel integration and consistency is a customer expectation • Branches are still the preferred channel for opening new accounts, but the branch is evolving from transaction to advisory services
- 7. Many Ways to Engage Customers Self Service Offers & Promotions Online Catalog Wayfinding Touch screen to allow users Product & Service Touch screen interaction Touch screen map with to perform simple information, along with with “endless aisle” for shops, restaurants, transactions and avoid teller click-to-chat interaction, information & ecommerce services for local area/ in- wait times. store wayfinding.
- 8. Discussion • Are these the drivers? • Are there others that you are seeing / responding to? #CiscoPlusCA
- 10. How do we scale the organization - handle increased transactions + maintain high Customer Satisfaction? • More people visit Apple’s 326 stores EVERY QUARTER than the 60 million who visited Disney’s four biggest theme parks in ALL OF 2010 • Customers standards with regards to experience have been set by other industries, but Financial Services companies are beginning to change • One size does not fit all – branch design and focus may need to change depending on customers interest in particular branch services. • Goal is to create the experience that make customers want to buy
- 11. Resource Allocation - How do we get the most qualified resource at the right place at the right time? Home … Branches Mobile Branch Contact Customer Center
- 12. Imperatives and Opportunities • Differentiation - Drive dynamic and differentiated delivery channels - integrated and seamless • Speed - Fast track new / tailored products and services – innovative solutions • Agility - Capitalize on intelligence to manage market losses - claims, customer data and interactions; M&A • Leverage - Fully utilize all assets / expertise – inside and outside / across all geographies and business lines - brands, partners, associates, distribution networks Operate, Transform, Grow - simultaneously
- 13. Digitally-Enabled Business Model Mobility Community Collaboration Video
- 14. Embedded Mobility/ Wireless Capabilities – Fully Integrated into Operating model • Improve the ability of staff to move freely throughout the location and across the branch network • Reduce costs associated with maintaining dedicated work spaces for resources supporting multiple branches Dynamically join online meetings to view shared content, view participant list and chat Transfer to a live Video meeting from Phone Offer convenient services to clients (i.e. internet access; help with decisions regarding investment alternatives)
- 15. Discussion • How applicable are these factors to your organization / line-of –business or function? • How important is it to incorporate these capabilities as an integral part of your next generation operating model? #CiscoPlusCA
- 16. How this is playing out?
- 18. Pilots and first phase implementations Leveraging video to help deliver specialized expertise : Sales Service Mortgage/ Consumer Lending Interpretation Services Wealth Management Debit Claims Small Business Consumer Lending • Significant improvements are being reported. A sampling of which are below: o 100% customer satisfaction with the experience o 65% increase in applications o 10% to 15% of sessions became sales leads o From 50% to 90% sales conversion rates o 75% increase in products per customer
- 19. A Retail & Wealth Management Example – Remote Expert at BMO Providing Financial Advice Anytime - Anyplace
- 20. Cisco’s Collaboration Investment Value Cisco FY2010 Benefits (Gross) = $1,523M $601M $516M Reduce Avoid travel Save time Reduce travel costs to to increase Reduce real estate improve Reduce commuting efficiency profitability Find people faster Transform Speed Find information faster $141M business to process to Scale expertise increase increase $266M Increase customer intimacy growth agility Enhance executive Shorten sales cycle communication Speed time to market Create new Reduce delays in revenue streams decision making Source: Cisco IBSG, 2011 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
- 21. Cisco’s Productivity Journey FY95 Through FY10 Web 1.0 Web 2.0 6 Total: $5.2B 5 Web 2.0 Collaboration Benefits ($B/Yr) Solutions: 4 $1.4B 3 Web 1.0 Internet 2 Solutions: $3.8B 1 Information Sharing Transactions Interactions Collaboration FY95 FY00 FY05 FY10 Source: Cisco IBSG, 2011 © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
- 22. Cisco’s Business-Value Approach – Addressing your Business Imperatives
- 23. Cisco Solutions for Retail Financial Services
- 24. Cisco’s Business Value Approach Opportunity Proposal Proof of Implementation Discovery Identification Concept 100% Identify the Invest the time to business/technology better understand Determine a needs that Cisco can the business need potential rollout Jointly engage in 65% impact and technology a PoC to architecture determine tech and business Architect and viability of the Value Realization Propose a joint 35% Solution Solution to take to Proof … Proof of Concept/ Success Factors 15% Insights - A Mutual Business Case – Commitment Correlation with Discovery I.T Requirements Process – Focus 5% on Business Introduction and Imperatives Brainstorming 0% © 2010 Cisco and/or its affiliates. All rights reserved. Cisco Confidential #CiscoPlusCA 24
- 25. Discussion • What is the most valuable role that Cisco can play to help you to get maximum business value? • How useful / appropriate is Cisco’s proposed holistic approach, co-investing in opportunity discovery, and proof-of- value pilots? • What additional information / insights would be useful to strategy and planning? #CiscoPlusCA
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