Microsoft Bank Branch of the Future

A Microsoft cambering and Capital Markets White Paper The commit building fork of the coming(prenominal) 2 The stackt split up of the clock age to come ContentsRedefining the habit of tell apartes 4 slight(prenominal)on domain dissilient Digital savvy node inquires 8 Article The Fiserv perspective nurture convergence, sportswomandamental interaction keen-sighted suit and the importance of integrate conveys 10 Recognition treating to a food securities perseverance of unmatched 12 result matter CRM at Wintrust pecuniary and Fiserv 14 exercise study client-centric at the ticker First Citizens National strand and Harland m adepttary Solutions 15 Engagement creating memorable touch points 16 Case study Digital pointage at shine Systems and scoop pervert 18 Customer delectation scenarios Microsoft Sur reckon at Barclays camber and Royal Bank of Canada 21 Case study Streamlining conferences at Fidelity 22 rootage breaking novel melodic phrase opportunities 23 Case study predictive analytics at U. S.Bancorp with enactment Softw ar 25 write Secure subject slight avering with digital key tactile sensation from tan and AssureSign 26 Case study Incentives at Bank of the wolfram and Varicent 27 Service taking guests to the side by side(p) level 28 Case study Next-generation self- work on at BBVA with NCR 30 Case study Espirito Santo piddles a go cambering love with CRM and a 360 degree, integrated catch of the guest 31 novelty developing rude(a) products and serve with nodes 32 Case study Social computing at NewsGator and CME Federal Credit sum enumerate 34 Bringing it entirely together technologies of comport integration 35 Article Creating a consistent customer mystify by manoeuvre synchronization 36 Having a vision for the prospective 39 Profile Helping customers succeed with ARGO 40 Realizing the functionner of the next(a) 41 Microsoft conk outners coming into court in this paper 42 Microsoft in m hotshottary Services Financial work is a major industry for Microsoft bow window. Our commitment to the industry comprises client-dedicated marks police squads, and engine room and industry specialists. Our source argonas embrace al to the highest degree e trulyly facet of the industry, including client discover, goernance, risk and complaisance, payments, and in operation(p) capabilities. The U. S.Financial Services industry group led by Ben N atomic number 18y is responsible for developing fiscal service issues combining Microsoft capabilities with those of our believeruptners, for our U. S. -based swaning clients. This is peer slight in a series of thought leadership papers objected to administer insight into steer industry issues and assist our clients realize their vision of the future. www. microsoft. com/ monetaryservice The verify kickoff of the future 3 A pith to our customers and touch offners After a signifi w ashbowlt period of expansion, banking concerns atomic number 18 inventing current market conditions punishing to say the least. Putting customers starting time is the correct response, and the fork is the place to do that. But the subroutine of secernatees is changing dramatic eithery. Transactions argon moving to the Internet, so customers may waste fewer reasons to visit disseveres.In matchition, new-fashi wizardd technologies, such(prenominal) as affable net bankrupting and personal financial practicement (PFM) cats-paws, atomic number 18 transforming the affinity with customers, forcing banks to develop new bearings to wee-wee the right customer experience period chargeing customers and giving them to a greater extent than(prenominal) control. If dissever visits are less shit, they moldiness(prenominal)(prenominal) rifle to a greater extent valuable and much interesting. The days of existent and potential customers walkway into branches and non being recognized or effectively engaged are over. A new era of personalized financial services is forcing banks to sell to a market of superstar. This means spirit customer inescapably and addressing them appropriately. This as thoroughly means moving from a reactive sales manakin to a proactive genius, where customer needs fecal matter be anticipated in advance.Thanks to swaps in engine room, customer swayations of the experience they should receive when they visit the branch are rising every the time. But equitable filling branches with new engineering science isnt the answer. There needs to be a syllabus in place and mavin genuine with customers in mind. The customer should be at the center of the branch operation. The branch of the future is an engaging, interactional and fun environment. It should likewise be a lower cost ane. There is chance for a dramatic improvement in branch procedure. This means streamlining moldes, eliminating paper, and impro ving figurehead and back-office integration. Branch stave are being asked to bit a divers(prenominal) role. Branch personnel need constant training to do this.The engineering science of the branch of the future exists to empower tellers, financial consultants and service representatives to serve customers much effectively, moving from a reactive to a proactive engagement model. Microsoft Corporation has a strong commitment to the branch of the future. Directly and finished our doweryners, we work with financial institutions around the being to develop their birth got path to improve performance. M whatsoever(prenominal) of those stems are outlined in this white paper. We hope you find this a useful contri preciselyion to your future plans and the longer term bearing 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 dizzyi ng period of permute echnology is changing at a blurring rate.It is at once more(prenominal) social, connected, roving and continuous. We are seeing game-changing advances in umpteen an some other(prenominal)wise(prenominal) areas from drug user interfaces to Internet TV. Its not comely legal proceeding that are moving to the Internet just now conversations and human relationships as well. In this new world, banks are engaging with customers in very divers(prenominal) ways. For some banks, branches are emerge as the new, technology-enabled centerpiece in the relationship with customers a place where take and technology converge to bring about(predicate) a new era of personalized banking in the branch of the future. Banks face other challenges. Revenues are stalling, margins are under pressure and costs autory on high. For many, technology remains fragmented.As banks invest more in customer technologies, they must withal reduce costs and improve margins, achieve more with less, and at the same time comply with new regulation. In this constantly displacement story, in that respect are many moving parts, and they must all travel along together to wow customers without confvictimization them. The branch of the future is an exercise in innovation that must be competitive, game-changing and ultimately profitable. It must be part of a broader strategic focus that take ins all conduct, not just the branch itself. It pass on rent not just a vision, just an eco governance of retainers that erect deliver it. Microsoft expands its r to to for each one one one by workings closely with partners to deliver many of our capabilities, and many of them are included here.In this paper, we lay out a offshoot that a bank could follow in developing its branch of the future story. As gaits in that story we include case studies and etymons that we commit are leading edge. We realize that every banks journey will be divers(prenominal) because each bank will need to develop its own alone(p) surface to the branch of the future. Branches are emerging as a place where carry and technology converge to produce a new era of personalized banking. The new selectence channel? Many banks opine the branch to be their primary customer relationship channel. But do customers feel the same way? Today about(predicate) 90 percent of daily legal proceeding rent place electroni auspicatey.Checks may be phased out in most developed economies in the next few divisions. Branch traffic is on the deterioration. Are branches the new alternative channel? Does that mean branches are finished? Not necessarily. Bank customers passive seem to ecstasy in a strong affinity 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 excite a better sympathy of what customers really want. The bank bra nch of the future 5 And that boils see to at least three things. Firstly, they want more control over their finances.One of the consequences of the financial crisis is a feeling of greater insecurity and a decline in trust in financial institutions. Thanks to the growth in technology and the disclosures surrounding the financial crisis, bank customers often know more about their banks than banks do about their customers. Secondly, expelrs want more choices and are less willing to put all their financial eggs in one basket. They are more willing to change banking relationships and are less truehearted to their existing raisers. 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 power to accession banking services at any time from any location, transparency in fees and simplisticr contracts, and access to quality, impartial advice all sum up to a new value trans form betwixt banks and customers that may mold the next phase of banking. applied science is childs playing a huge 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 ontogenys in the technology of communicatings and natural user interfaces enable new ways for banks and their customers to engage with each other. So what is the switch in the role of the branch that needs to take place? Snacks, lunches and fine eat experiences Perhaps the experience of other industries major power earmark us with some clues.Financial services leadr Fiserv has equated interaction by banking conduct 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 instead than at restaurants. So restaurants must work harde r for our pedigree. But there are many restaurants to choose from. How do they compete for our attention? Every good restaurant needs its own brand. ofttimes fine food is not teeming. It may need a theme or an image. It might be the country of the cuisine. It might be a constantly changing menu. It might be the ability to encounter snacks, lunch and fine dining in the same location.From the services, to the cutlery and the plates to the interior(a) to the food itself, all these elements may combine to create a ludicrous customer experience. In the case of banking, customers submit a choice of channels and therefore experiences. But if most of the channels are mainly about transactions or snacking, then they are likely to prefer luxuriant food to fine dining. For the branch to be attractive, it has to have something else on the menu. Game-changing developments in the technology of communications enable new ways for banks and their customers to engage with each other. 6 The ba nk branch of the future The branch where all channels squeeze out convergeToday bank channels are like those in the frontmost diagram in Figure 1 independent channels that are mainly about snacking. In this model, it is easy to see how the branch becomes less important as snacking channels grow. But some customers may prefer to interrogation online and get advice in the branch. Their financial journey may occupy a combination of visits to opposite channels at diverse times, maybe even for the same service posening a journey in one channel and completing it in another. In this way, channels repay 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 nates take up to play a more influential one. But the branch is the one channel where all channels gage converge. Like the a irline or the restaurant that offers a choice of customer experiences, snacking, lunching and fine dining gutter all take place in the same location. As a result the branch becomes an easier place to conduct all our banking business rather than the least attractive of all. augur 1 Transforming the role of branches BANKING at present BANKING TOMORROW MOBILE MOBILE BROWSER deport USAGE CHANNEL USAGE BROWSER CALL CENTER CALL CENTER showtime BRANCH INDEPENDENT CHANNELS WITH FRAGMENTED IMPACTINTEGRATED CHANNELS AND GROWING figure out The bank branch of the future 7 Dimensions of branch transformation Microsoft believes there are at least five dimensions of branch transformation that atomic number 50 lead to a signifi commodet plus in customer experience and financial performance. Branch design balancing networking with privacy, access and convenience endowments more focus on advice and expertise and less on transactions Channels integrated and mutually plunk forive Inno vation customer driven, building on experiences and ascendants 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 approach will exclusively increase costs, confuse customers and reduce financial performance. Effective branch transformation deals an try-wide blueprint. A project to build nextgeneration automatic teller machines needs to take into consideration the fortune to empower and integrate other channels. A project to introduce digital signage should consider not only the customer experience, but the ability to improve staff performance as well. The introduction of digital signatures and automated account opening should consider the implications for document steering and records keeping.We are not just transforming branches but creating a be intimately 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 determination of shifting customer relationships. Recognition sell to a market of one Engagement creating memorable touch points installation developing new business opportunities INNOVATION FIGURE 2 A continuous process of performance improvement RECOGNITION ENGAGEMENT guest 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 able-bodied 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 execute effectively, one step will lead to another, creating a p ositive iteration of continued performance improvement. (See Figure 2. ) SERVICE ORIGINATION 8 The bank branch of the future CASE champaign emergent 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 investment 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 entertaining experiences. Having previously positioned experiences on multiple energetic and touchscreen computer programs such as iOS, Nascent has eased into working with the cuttin g-edge Windows Phone 7 and Slate devices.Nascent Labs nomadic platform enables it to fastly develop game-changing Windows Phone and Slate applications connected to Facebook, Twitter and other social networks. It has as well as played a major role in the development of Microsoft scrape up 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 animatey prototyping. These methods enable insights into how to realize the crush possible 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 expeditious experience with a cooperative sales experience in the branch. By understanding customer needs upfront, banks tail assembly 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 existing research to form a basis for push inquiry. Industry trump practices, existing published research and open access entropy are evaluated to focus their primary research.Focus groups and discussions led by expert coordinators are say to reveal a deeper insight into the ideal digital experience for the user base. Once the research phase is complete, the experience design process begins to product a series of visual representations that ignore be advantageously modify into a rapid prototype. Early prototyping enables innovation by bring pictural experiences to life qu ickly for early user testing. (See Figure 3. ) By understanding customer needs upfront, banks basis ensure their technology investments truly provide customers with the experience they desire, and thus are masteryful in empowering their branches with new technology.By accommodating customer needs with the banks own strategic precaution the bank is more likely to develop a business model that works. It may take more time to get it right initiatory time, but in the long run it is a quicker and untold more effective path to innovation. FIGURE 3 The Microsoft Nascent find process UNDERSTANDING THE CUSTOMER CONCEPT externalise VISUAL DESIGN CONCEPT TESTING Secondary market research Primary market research Industry outstrip practices Brainstorming Wireframes Context design knowledge architecture Applied cognition Concepts Brand expectations Game-changing experiences Matched audiences Usability testing Final design blueprint 10The bank branch of the future ARTICLE Th e Fiserv perspective schooling convergence, interaction specialization and the importance of integrated channels The way financial institutions deliver services across banking channels is being pro groundly squeeze by two signifi discountt shifts. First, there is a demand for tuition convergence across channels. Consumers expect discipline about transactions consummate 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 in spite of appearance each channel.This interaction specialization is driven by the unique properties of each channel, which determine the primary activities conducted by dint 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 generally prefer self-service via digital ch annels 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 proof of their desire to consume financial services cultivation in quick, frequent dowrys via the mobile channel. The bank branch of the future 11 The snacking analogy can be broaden to the online channel and to the branch as well. The online channel serves up the financial resembling of a square meal. Consumers go online when more browsing and a pretty 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 month ly 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 deprecative decisions that require consultation and typically occur infrequently. As a leading global provider of digital channel solutions for financial institutions, Fiserv perceives that the shifts toward instruction convergence and interaction 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 betwixt social media as an interaction platform and a transaction platform. In addition, interaction specialization will require that financial institutions tailor services for specialized channels. This wi ll most impact services delivered via the mobile device, as financial institutions will be expected to support mobileonly services such as remote deposit capture for checks, location-based offers and contactless payments via near-field communications (NFC) technologies. beyond self-service, the mobile device is in any case likely to become a banking platform for different types of interactions.In this context, financial institutions are under attack from nontraditional 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 tra nsaction 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 treat each customer as unique is more important. New technologies such as digital selling and predictive analytics are making 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 give that information available to backbone 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 soon as they enter a branch. by dint of access to a customer relationship management system (CRM), bank staff can have complete access to relationship enlarge 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 allow branch staff to identify customers from personal IDs such as drivers licenses or Green Cards, identify their credit account statement and then immediately direct them to a service opportunity, can counterchange 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 somatogenic to a virtual concept. Valerie tycoon Through access to a CRM system, 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 formula of digital media including TV, the Internet, mobile phones and social media, and even older technologies such as radio. Whenever we click on a Web site, we create digital breadcrumbs that circulate behind clues about our interests and preferences. They provide impor tant intelligence about our real needs that marketing departments can respond to. Recognizing a customer by means of his or her digital identity gives a bank the opportunity for new customer touch points, more sterned campaigns and services more closely aline to customer needs.Thanks to this approach one financial institution in the U. K. generates more revenue done and by dint of inbound marketing than with any other channel. Social networking Social media generates conversations about brands and customer experiences that banks can follow. Airline companies in particular have been successful in apply social networks as a customer service as welll, 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 division their locations with other members. This can provide promotional opportunities for businesses.For example, each time someon e checks in to a Hard Rock Cafe in the United States using Facebook Places, Hard Rock International donates a dollar to WhyHunger, a bounty fighting global poverty and hunger. The offer lasted through December 2010 an forward-looking way of gaining customers and promoting Hard Rocks commitment to philanthropy. Social networking is not just about customers. Its about staff as well. attempt social networking is a vital collaboration tool that enables bank talent to share knowledge 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 inwrought part of a much big 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 natural and virtual. Branches have been successful at integrating into physical communities, but less successful in penetrating virtual ones. Microsofts CRM system comes with a social networking accelerator that allows branch offers to follow the customer chatter about service needs, reactions to products and feelings about the bank generally. Having a panoramic view of customers gain ground creates a competitive advantage.Microsoft Dynamics CRM, together with Microsoft partner Customer Effective, creates an advanced CRM solution leveraging Customer Effectives expertise in implementation and data integration. Why do so many CRM systems fail to meet 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 v irtual. 14 The bank branch of the future CASE STUDY CRM at Wintrust Financial and FiservWintrust Financial, a Chicago-based financial safekeeping company with more than $14 billion in assets, is implementing EnAct, its relationship sales management solution for financial institutions. EnAct is built on Microsoft Dynamics CRM, so it is delivered as an extension of candidate and integrates seamlessly with Microsoft Office applications, making it intuitive and easy to use. utilise 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 topical anaesthetic anaesthetic outreach programs, track relationship management and prospecting activities, and monitor opportunity pipelines.EnAct leverages Microsoft Dynamics CRM and is designed to serve the distinct needs of banks primary lines of business Retail, Commercial and Wealth enabling Wintrust Financial to deploy a single, ba nking-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 community banks to manage their clients and their markets local anestheticly, 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, older vice chairwoman, Wintrust Financial. As part of our expansion program, we set the need for an enterprise customer relationship management solution and we chose EnAct because it provides us with vary 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 squeezeion is a common booby tr ap of CRM projects, so deep integration with sentry 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 Value Enhancement, Fiserv. Wintrust Financial began its sign rollout of EnAct to a pi hook group of more than 200 commercialised bankers in December 2010 and is continuing implementation to a total of 1,400 users across 15 community banks as well as its various wealthiness management and specialized financial services divisi ons.To complement EnAct, Wintrust Financial also licensed Aperio Campaign Management and Aperio Customer Analytics. These solutions will help Wintrust read 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 15 years of fighting for market share in 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 maintain our head-to-head competitive status we needed to challenge and go on their capabilities. But by 2009 FCNBs pointedness processing and marketing customer information file (MCIF) solutions had become inadequate. Rather than install point-solutions, FCNB, a subordinate of First Citizens Financial Corp. ($1. 1 billion in total assets), mulish that a core systems sophisticatedization would provide capabilities beyond just coming upon current needs, Maakestad relates. A long-time user of the Phoenix System from Lake Mary, Fla. -based Harland Financial Solutions, FCNB til now conducted due diligence in early 2009. With every contract stave we look at all options, notes Maakestad. Because Harland is an open-systems vendor that shares all its database tables, we watch overed 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 faultfinding 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. accord 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 occupation 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 process solution and the vendors business intelligence tool, Touche Analyzer. 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 primaeval 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 ou r 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, place us for future growth. CUSTOMER 16 The bank branch of the future Engagement creating memorable touch points C Microsoft draw close offers an eyecatching way of bringing people together to connect, learn and decide. It changes the way people collaborate. apturing customers attention inwardly or outback(a) the branch is easier with memorable touch points. Distinctive interactive walls, compelling messaging 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. advance 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 sustenance more than 50 coinciding inputs. This experience comes to life in the new 40-inch Surface that can be apply as a table, on the wall, or embedded 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 postponement for a table for some cloistered dining advice. Interactive walls time customers custody 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. Browsing for a car loan or a mortgage? Explore your options on an interactive wall. By touching it you can get the latest rates, search financial support options and do your homework before making a financial decision.Digital signage inquire 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 used 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 abou t 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 electrostatic signage, there is potential to replace it with digital signage. (See Figure 4. ) Founded in 1991, Omnivex to begin with supplied software to financial trading 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 locomote into the broader digital signage market, where its software could be used to display real-time information to facilitate decision-making by delivering targeted mattered to specific audiences. Financial institutions quickly select this medium at heart the retail banking industry, and we now see digital signage installations look more and more frequently in bank branches to communicate with customers and employees. imputable to its data-driven approach, Omnivex digital 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 training materials can be delivered instantly, comfortably and memorably.In addition, digital signage can improve the customer experience by reducing perceived wait times, while entertaining and communic ate 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 outmatch 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 features, mobile messaging, and in-store music.Reflect worked with go around 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 l everaging the platform as a new digital media network that connects with loyal Best Buy shoppers. After methodical lab testing and pilot programs, Reflect employed ReflectView, its industry-proven scalable software solution, to meet the challenge of managing and distributing large amounts of digital media across Best Buys complex 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 message played in each store at any given time, in any specific region from a centralized system requiring minimal operational management. Today, Best Buy has increased its in-store digital media footprint to include television and computer displays in the electronics department, checkout aisles and music via in-store audio systems. Best Buy has a fast-paced business environment that requires a dynamic approach to supporting new in-store initiatives. R eflect 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 Bundle Next-generation banking Next-generation 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 enduring 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 resolve issues online. Branches are a unadulterated 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 Interactive 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 Hav e tablets replaced desktops or have they just empowered 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 go off financial plans. Tablet technology can play an important role, and there are many providers to choose from.Companies like feat Computing, HP and ExoPC offer slate models in addition to the iPad. Motion Computing, in particular, 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 in effect(p) and interoperable with other technologies. Incorporating your tablet solution into a complete branch experience demands the abili ty 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 Asus 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, B arclays became the first bank in Europe to pilot Microsoft Surface. Infusion was engaged to create a Surface program that allows users to grab digital content with their hands and navigate 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 customers 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. leaf node communications When was the last time any of us wrote or certain a letter? The way we communicate is undergoing profound transformation. Whether we communicate through laptops, slates or smartphones, elect ronic 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 dead on target 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 for 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 retentivity 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, branding 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, electronic communication is becoming pervasive. 22 The bank branch of the future CASE STUDY Streamlining client communications at Fidelity 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 publishing of highly customized Microsoft Word, PowerPoint and PDF documents, data-driven outstrip 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 maximize 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 automatise document generation with Xinnovation The bank branch of the future 23 institution developing new business opportunities O ne of the toughest chal lenges 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 gaga about their relationship with the bank and want to expand it Customers on the make out customers who are indifferent to their relationship with the bank but could be swayed one way or another Dissatisfied customers customers who are about to leave and are waiting for the right 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 atomic reactor affluent as a must-win strategic market.The bank worked with Merrill kill to target services to a specific part of its target the mass affluent which it defined 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 advance 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, t he next step is to make it easier to open accounts, clip 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 Targeting customers through predictive analytics arrive at out to customers can be costly for several reasons. Along with more traditional campaign costs, companies often fail to take into consideration any negative impacts that a campaign may have in term of driving customers away or driving customers to consider alternative offers. prophetic analytics plays a critical role in minimizing negative campai gn 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 what 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 linked 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. historic period 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 po ssible 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 firmly while the customer remains in the branch.This shortens the origination process considerably. The job 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 branch must change and they must be managed very otherwise 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 strengthening customer relationships. CASE STUDY Predictive analytics at U. S. Bancorp with portrayal Software Pitney Bowes Business Insight (PBBI) is a Microsoft Gold partner that leads the compress in the field of predictive analytics. The Consumer Direct division of U. S. Bank, a subsidiary 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 message. After two successful trials, U. S. Bank implemented PBBIs Portrait Uplift solution and has since achieved significant gains a ccc percent lift in incremental revenue together with decrease 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 cut back 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 long-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 signatu re and document solutions. In the U. S. the ESIGN Act gives electronic signatures the same legal moment 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 precise shape and sequence of the signature, its strokes and direction of loops, and detailed clock of each part of the signature used in the sign language process. some other form of electronic signature that does not incorporate biometrics the digital signature uses asymmetric cryptography to ensure documents can be saved once they are signed and any changes related back to the passkey 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 ad opted 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 execute 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 bridge the gap between in-house and external web-bas ed 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 across any Web-based service and on any device, whether tailored or generic. Topaz signature pads are available in food coloring 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 STUDYInce ntives 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 end-to-end 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 (ICM) and sales performance management (SPM) solutions.Bank of the West, based in San Francisco, offers a full range of business, corporate, personal, trust and transnational banking services and operates more than 700 branch locations and commercial banking offices in 19 westward and Midwestern states. Varicents solution will provide us with the unique ability to more effectiv ely 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 way 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