Branch of the Future:

how technology is inspiring design

26 October 2011

Douglas Blakey, Editor Retail Banker Interactive

Welcome

Sai Kumar Jayanty, Lead Product

Manager, Finacle

Michael Allen, Chairman and

Managing Director, Allen International

Wayne Bossert, Executive Vice-President Sales, Royal Bank of Canada

Sai Kumar Jayanty

Lead Product Manager

Finacle

From a Gallup Survey

Emotions Frame Customer Encounters

A Foundational Principle

Power of Net Promoter Score (NPS)-

correlated

strongly with growth

NPS is a trademark of Bain &Co

Customer Engagement Alone is NOT Enough

From a Gallup Survey

A Foundational Principle

Evolution of Branch Utility

7

Source Mckinsey, EFMA

Technologies-Empowered Front line

Single & Common view of relationship helping institutionalise the customer relationship

Technologies-Empowered Front line

Single & Common view of Products & Services

Technologies-Empowered Front lineTriple play in action

including Push2Talk

Data, audio and video hotline based on Unified communication

Teller to seller- empowerment

Simulators, illustrators,Goal seekers, modellers comparators

3

Technologies-Empowered Front lineReal Time Intelligent Conversation4

In action: Real time interactive customer advisory solution

12

•Customer confirms study•Suggest products to customer•Customer interested in loan

Happy Advocate walks out “My bank knows me”

•Enquiry•Validation of need

Next Best Products1.Education Loan products2.Travel products3.Insurance products

RecommendRecommend

Core

Current transactioninfo

DD issue favoring “US consulate”

What is happening nowWhat is happening now

• Intuition: “Customer likely To pursue overseas education”Ask questions – Confirmedfor Study abroad

RefactorRefactor

Customer walks into a counter at the branch

Executive loads the customer file from Core Banking system which

automatically triggers advisory solution

What we already knowWhat we already know

• Current propensities•Which agent

ProfileProfile

Executive performs requested customer

transaction

Michael Allen

Chairman and Managing Director

Allen International

National Bank of GreeceiBank

Santander SelectMexico

HelmColombia

Enhancing the customer experienceBancolombia is the largest bank in Colombia with close to 900 branches including a presence in El Salvador, Spain, Panama, Puerto Rico and USA. To maintain its position as the number one financial services provider it has appointed allen international to develop its branch environments to enhance the customer experience and reflect the bank’s brand values, whilst increasing revenues and profitability.

Wayne Bossert

Executive Vice-President Sales

Royal Bank of Canada

1. Source: Bloomberg, as at September 2, 2011.

Market Capitalization US$ billions (1)

50 100 150 200 250

1 ICBC

2 China Construction Bank

3 HSBC

4 JP Morgan

5 Wells Fargo

6 Bank of China

7 Citigroup

8 Commonwealth Bank of Aus.

9 Banco Itau

10 Banco Santander

11 Bank of America

12 RBC

13 TD

14 Westpac Banking

15 Mitsubishi UFJ Financial

16 Banco Bradesco

17 Sberbank

18 Scotiabank

19 American Express

20 BNP Paribas

RBC – Among the Top 20 Largest Banks Globally

InternationalU.S.Canada

RBC’s Key Strengths

Well positioned financially and competitively

Revenue

by Geography (1)

Trailing four quarter average

Canadian BankingInternational BankingCapital Markets

Wealth ManagementInsurance

Revenue by Business Segment (1)

Trailing four quarter average

1. Amounts represent continuing operations and excludes Corporate Support. For further information, see Q3 2011Report to Shareholders.

17%

20%63%

5%

15%

37%

20%

23%

Leveraging our leadership in Canada to build globally competitive businessesDiversified model with the right mix of businesses and geographiesStrong capital base and highly liquid balance sheet

RBC’s scale advantage

Largest most  integrated 

distribution  network

Data: As at Q3, 2010

Reaching 10 million clients on their terms

•Most branches in 

Canada with 17% 

more than our 

peers

•Largest ATM 

network with 

50% more 

than our 

peers

•Twice the 

number 

financial 

advice 

specialists

•Largest active 

on‐line 

customer base

•Largest and 

most 

integrated 

call centre

Reinventing RBC’s retail store

Winning more business by educating and empowering customers

•

Educating clients on channel options to save  them time and money while driving down costs

•

Central meeting place for clients and advice  specialists to explore and purchase solutions

•

Event and presentation centre to generate  client acquisition and revenue growth

Why did we redesign?Customer demands and expectations are changing

Customers tell us that they come to our branches because of our people

All of our technologies have been designed to enhance their interactions with our experts

The new store design also allows staff to spend more time interacting and helping clients   

on the floor  or in meeting rooms

RBC’s new Retail Store brings to life a dramatically new kind of retail banking   

environment

Our store changes the way we are presenting customers with choice, knowledge and advice

It’s a hybrid of best‐in‐class retail shopping and financial services – a more open,

informative and friendly experience that is accessible to everyone

The Welcome Screen greets and draws the client into the space. Introduces staff and provides quick ‘at-a-glance’ information that clients may be looking for but don’t have time to wait and ask.

Entrance

MS Surface provides the ‘Wow-factor’ that this is a unique space oriented around the client providing financial literacy and advice. 4 new applications per year keep content fresh and engaging.

MS Surface Technology

Digital signage is installed in both the CSR and ATM zones. Clients have the continued ability to access CSRs, ATMs & Night Deposit. Online Banking Kiosk is also present in this area, allowing staff to walk clients over for a quick ATM or Online Banking demo.

Transaction Zone

A store within a store approach, where each Line of Business is displayed. Merchandising units allow clients to explore financial topics of interest to them. Digital screens above the touch merchandisers provide way signage to clients and an icon

Merchandising

Creates a space to attract and engage clients through advice videos during the day and hosted seminars and community events at night.

Seminar Area

Innovative Opportunities to Interact with  the Branch 

•

Experts on Demand

•

Video Conference

Innovating new approaches to deliver expertise

Sai Kumar Jayanty, Lead Product

Manager, FinacleMichael Allen, Chairman and

Managing Director, Allen International

Wayne Bossert, Executive Vice-President Sales, Royal Bank of Canada

This webinar will be available for replay at Retail Banker Interactive from 27 October 2011.

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