Boxley Llewellyn – Director of Banking Industry Growth Initiatives

August 2010

Banking:
Front Office

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Building a smarter planet

The Emerging Economies are leading the global

economic recovery with banks well positioned for
growth due to effective risk management

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Building a smarter planet

CEOs identified getting closer to the customer as

the top priority in the New Economic Environment

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Building a smarter planet

Clients believe banks offer products and services

that are not aligned with the clients’ best interests

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Banks have overlooked their customers’ values

and behaviors

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Building a smarter planet

Customer value drivers are fragmenting –

demographics, value systems
Mass customization becomes essential

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Building a smarter planet

Banks investments in new initiatives drive customer

satisfaction while improving bottom line results
 JPMorgan Chase reported an increased of 75% in 12
months to deposits collected via envelope-less ATMs
 Online focused initiatives are increasing
 Use of connected video kiosks targeted to reduce branch
footprint while providing a superior customer experience
 Mobile technology-led pilots leveraging apps, location
based capabilities are common; the primary driver is to
drive value beyond core banking products
 Process-led innovation to deliver cost effective
differentiated service
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Building a smarter planet

Regaining TRUST one step at a time

Transparency

Value for Clients (Price, Return, Innovation)

Differentiated Service

Intelligent Interactions

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Building a smarter planet

Customer Experience – Making it Happen

Brand/Marketing Products and Services
Branch Staff Self-Service Internet Bank Telephone Bank

 People: Reporting Tools, Customer focused

training, Staffing/Incentives
 Processes: Customer Facing, Back Office,
Digitalization
 Customer Data: Single view of the customer,
Real Time Analytics
 Technologies: SOA, Cloud, Open Source, Mobile

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Building a smarter planet

IBM Banking Industry Framework for Customer

Care and Insight  Customer Data Integration
 Common Data Warehousing and Models
 Enable Information as a Service (SOA Foundation and
Infrastructure)

Customer  Customer Analytics

Insight  Business Insight
Customer Optimization  Search & Discovery Analytics
Information  Threat & Fraud Intelligence
Optimization
Multi-Channel
 Common Channel IT Architecture
Transformation  Channel Renovation (including Internet,
Mobile, Teller and Branch, Contact Center,
ATM and Kiosk)

Integration
 Cross Sell / Up Sell
Optimization Sales
Customer  Lending Optimization
Customer Analytics Process
Care
Care and
and  Dynamic Product Bundling
Collaboration Optimization
Insight
Insight  Customer Onboarding (aka Account Opening)
Security
Resiliency
 Case Management
 Contact Center Optimization
Service  Disputes
Process  Event-Based Decisioning
Compliance Optimization
Process
Optimization Marketing  Customer Segmentation and Profitability
Process  Campaign Management
Optimization  Marketing Communication

 Customer Preferences
 Know Your Customer
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Building a smarter planet

IBM Banking Industry framework

Software, extensions and accelerators will act as key differentiators

The framework gives you speed, flexibility and choice

in deploying solutions while reducing cost and risk!

Key Benefits:
Core Banking
Transformation
 Faster deployment
 Lower Risk
 Support for adoption of
Common Business
Customer
Integration
Optimization Payments open & industry standards
Language Services
Accelerator
Care and
Insight
Analytics
Collaboration
and
Securities
 Offer choice of business
Security
Resiliency
applications from IBM &
its partners
Integrated Risk  Simplified enterprise
Management
architecture
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Building a smarter planet

Customer Care and Insight

Extensions and Accelerators
IBM Middleware
 Information  Common Business Information
FrameWork (IFW) Language Management
& Banking Data  Services Accelerator
Warehouse (BDW) WebSphere Business
Process and Data  COGNOS Banking
Performance & Application
Models Integration
Blueprints
 Rational Software
Architect with IFW  Customer Lotus Collaboration
Identification & Communications
 Banking Data Solution
Integration Rational Development
Accelerators  WebSphere
& Management
 Account Opening  Multichannel Bank
Transformation Tivoli Security
 Scenario Toolkit & Governance

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Building a smarter planet

Building Capabilities for Smarter Banking:

Front Office Transformation
Develop products & grow Leverage historical and A personalized &
Unique value realized

new markets with a single real-time interaction data to predictive multi-channel

view of the customer enhance customer strategy to attract & retain
centricity customers

Optimize

Analyze
3 Outcomes

Manage
2 Patterns
1 Data
Customer experience Cross-sell and up-sell
Organic growth Customer service Customer sat & loyalty
Reduction operations costs Market share growth Profitable revenue growth

Enabled by the IBM Banking Industry Framework Use of Smarter Planet capabilities
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Building a smarter planet

IBM Solution Centers help banks with technologies

to provide a differentiated customer experience
New York Montpellier
Global Industry Solutions Lab Center of Competence
Bank and Retail Walking Tour Remote access for other centers
Front Office, Back Office and Infrastructure Smart Bank Optimization Environment
Leverage IBM Research Core Systems and Infrastructure solutions
Barcelona Dallas
Banking Industry Solution Center: Global Solutions Center
SW and NE IOTs Front Office & Account Open prototype
Front Office and Infrastructure Solutions Infrastructure solutions
Customer prototypes Customer architectural workshops
Multiple Partner Solution Demos
Sao Paulo and Beijing
Innovations Center
Front Office and Infrastructure briefings
Singapore
Front Office and Infrastructure focus
Self Service, Digital Signage, Queuing

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Building a smarter planet

Future Front Office Channels leverage technology,

preserve the effectiveness of “high touch” and
deliver a superior customer experience
 Superior customer service
 Greeter/Concierge
 Wireless teller assistants
 Role-based enterprise-wide portals
 Teller-assisted self-service terminals
 Instant customer recognition across all
customer touch points (RFID + Analytics)
 Experts on Demand-video conferencing
 Digital merchandising and Smart Security
 Integrated with contact centers
 Virtualized desktops and infrastructure

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Building a smarter planet

Creating a Customer Focused Enterprise

 Information Management will be key to

power and personalized differentiation
 Enterprise wide processes needed to
address customer satisfaction needs
 Consistent delivery of service across
all touch points becomes “normal”
 A flexible open SOA driven
infrastructure which supports
enterprise customer driven objectives
of service, innovation and speed

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