#CEBSUMMIT
CEB Financial Services Technology Summit ’14The Realization of Service22–24 April 2014
The Keys to Optimizing Customer RelationshipsSteven Murphy, Research Director, CEBMichael Frederick, COO, ATB Financial Services
CEB TowerGroupTM Commercial Banking
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A UBIQUITOUS PRIORITY CEB TowerGroup Customer Experience Top 10 Initiatives 2014
Source: CEB analysis.
Practice Area Description
Capital Markets Empower line of business with self-service information access.
Commercial Banking Enhance the client experience to improve customer satisfaction and retention.
Insurance Optimize the value of CRM across diverse distribution channels to improve sales and service quality.
Retail Banking Improve digital service and support to deepen customer engagement.
Wealth Management Combine content management, e-signature, and business process management tools for enhanced client onboarding.
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SERVICE QUALITY A TOP DIFFERENTIATORQ: What Are the Top Two Differentiators That Distinguish Your Company’s Services to Corporate and Correspondent Bank Clients?
n = 1,030.
Source: CEB 2014 Technology Adoption and Investment Survey.
Quality of Service and Relationship Management
Breadth of Financial Services Offering
Quality and Variety of Channel Offerings
Expertise and/or Specializations in Specific Industries
Price of Products and Services
Small Business Product Offering
Large Corporate Product Offering
Geographical Support for Customers
0% 25% 50%
46%
31%
25%
22%
19%
18%
17%
16%
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USING DATA TO IMPROVE SERVICEWhich Are the Top Two Outcomes That Your Company Expects to Improve with a Data Management Strategy?
n = 1,036.
Source: CEB 2014 Technology Adoption and Investment Survey.
Provide Customers
with Improved Service
Lower Costs
Generate Business Metrics
and Improve Reporting
Improve Sales to Existing
Clients
Attract New Clients
Improve Customer Retention
0%
20%
40%
0%
20%
40%36% 36%
34%
29% 28% 28%
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0%
25%
50%
0%
25%
50%
13%
46%
33%
8%
EXECUTIVES ARE ON BOARD High Value Assigned to Commercial Onboarding Initiatives
Very High Priority
Highly Automated and Continue to
Maintain/Improve
High Priority
Automation Initiative Active
Medium Priority
Automation Initiative Planned Next 18 Months
Low Priority
Not Planned
n = 24.
Source: CEB 2013 Automated Onboarding Survey.
Fifty-nine percent high-priority initiatives
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Challenges, Actions, and Benefits
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Sales and Marketing
■ Identify prospects and opportunities.
■ Target marketing communications. ■ Deliver sales pitch. ■ Offer disclosures. ■ Price products and services competitively.
Service Management
■ Develop a full view of client relationships.
■ Deliver effective communications. ■ Improve product/service with customer insight.
■ Enable self-service through digital channels.
Client Onboarding
■ Document management ■ Evaluate customer risk (credit, KYC, AML, etc.).
■ Entitlements, program managers ■ Training, communications, go live ■ Straight through experience with minimal cycle time
Product Delivery
■ Provide uninterrupted service. ■ Ensure consistent quality of the channel experience
■ Handle disputes and exceptions. ■ Deliver on customer expectations.
Source: CEB analysis.
KEY INTERACTION POINTSCustomer Relationship Life-Cycle
Client Life-Cycle
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n = 132.
Source: CEB 2011 Client Experience Survey.
IMPORTANCE OF ONBOARDINGA Better Onboarding Experience Builds Client Loyalty in Wealth Management
Clie
nt L
oyal
ty
Client Rating of Their Initial Interactions with Their Firm ExcellentPoor
High
Low
Primary Importance: ■ Speed of Account Opening ■ Ease of Data Collection ■ Welcome Call or Letter from Senior
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MISSING THE OPPORTUNITY TO EXCELPercentage of Wealth Clients Rating Each Stage as Excellent
n = 754.
Source: CEB 2011 HNW Client Experience Survey.
n = 30.
Source: CEB 2013 Customer Experience Survey.
Sales and Onboarding Experience
Financial Planning Experience
Annual Review Experience
0%
25%
50%
31%36%
42%
Percentage Who Tried and Failed to Open an Account Online
The Bank Had to Send Me
Paperwork to Sign
I Had to Call Customer Service
to Activate My Account
I Had to Go to the Branch to Sign
Paperwork
The Account Could Not Be Opened
Immediately
The Process Was Confusing or Did
Not Work
0%
35%
70%
0%
35%
70%
70% 67% 58% 52%40%
70%
0%
35%
70%
40%52%58%67%
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CHALLENGES OF ONBOARDINGDisparate Onboarding Technologies
Source: CEB analysis.
Applicant New Customer
Enterprise Content Management
Electronic Signature
Compliance (KYC, AML, Fraud)
Customer Relationship Management
Front-End Channel Platform
Challenges
■ Disjointed Systems ■ Manual Processes ■ Multiple Data Entry
■ Missing/Omitted Data ■ Errors and Exceptions ■ Compliance Risk
■ Long Onboarding Time ■ Customer Dissatisfaction ■ Slow Product Utilization
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ONBOARDING STP AN AMBITIONThe Best Practitioners Remain Only Partially Automated
Partially Automated Systems and Consistently Applied Across Products
Partially Automated Systems with Di�erent
Technology Across Products
Remain Mostly Manual
0%
25%
50%
42% 42%
16%
n = 24.
Source: CEB 2013 Onboarding Survey.
Best Practitioners
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MORE IT COORDINATION REQUIREDMore Than 42% of the Banks Access at Least 10 Systems During Onboarding…
Less Than 5
Less Than 10% of Systems Integrated
5–9
10%–25%
10–14
26%–50%
More Than 20
51%–75%
n = 24.
Source: CEB 2013 Onboarding Survey.
n = 24.
Source: CEB 2013 Onboarding Survey.
…But Optimizing Through Automation Remains an Ambition
0%
25%
50%
0%
25%
50%
33% 30% 33%
4%
Number of Systems
Most banks have fewer than 25% of onboarding systems integrated.
0%
25%
50%
0%
25%
50%
13%
45%
29%
13%
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CONSEQUENCES OF MANUAL WORKPercentage of Executives Selecting Top Negative Consequences of Manual Work
n = 58.
Source: CEB 2012 FS Operations Leadership Council Automation Survey.
Ability to Drive Efficiency
Ability to Respond to Change
Ability to Meet Customer Demand
Ability to Manage Risk
Ability to Keep Up with Competitors
0% 50% 100%
88%
69%
62%
57%
53%
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IMPROVE HIGH-IMPACT ELEMENTSOrchestrating and Automating Onboarding
Applicant
Front-End Channel Platform
Business Process Management Orchestration Layer
Core System/CIS
Customer Relationship Management
Electronic Signature
Enterprise Content
Management
Security and Compliance
Accept common data from any platform
Triggers automated workflow:
■ Import data to point systems
■ Coordinate and execute tasks
■ Process results ■ Accept/reject ■ Export to core system
Source: CEB analysis.
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FASTER INCOME REALIZATIONImprovement in Product Utilization Time After Onboarding Automation
n = 24.
Source: CEB 2013 Onboarding Survey.
Over 75%
51% to 75%
26% to 50%
10% to 25%
Less Than 10%
0% 15% 30%
17%
20%
29%
17%
17%
Imp
rove
men
t Ti
me
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AUTOMATION WIDENS MARGINSTop Performers in AutomationExpense to Revenue Growth Ratios
n = 27.
Source: CEB 2012 Hidden Inefficiencies Survey.
0.00
0.50
1.00
1.50
0.51
1.04
Expenses Grow 50% Faster Relative to Revenue Growth
Expenses Grow 50% Slower Relative to
Revenue Growth
Expense Growth Rate Equals
Revenue Growth
Top Performers Others
Expenses grow 49% slower relative to revenue growth.
Expenses grow 4% faster relative to revenue growth.
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SATISFIED CLIENTS DELIVER VALUENew Clients Who Recommended Their Firm by Rating of Initial Interactions
n = 754.
Source: CEB 2011 Client Experience Survey.
Fair to Good Very Good Excellent0%
40%
80%
33%
48%
63%
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Case Review
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MANUAL PROCESSES DOMINATEDSample Workflow of Client Onboarding Pre-Automation
Initial Meeting
Paper Documents
Administrative Review
Compliance Review
Manual Data Entry
Advisor
Client
■ Advisor focused on gathering data
■ Less fluid interaction with client
■ All forms were paper based.
■ Sent to centralized processing center
■ Must wait more than three days to process
■ Reviews often found errors.
■ Would return to advisor/client to complete
■ KYC reviews often found missing or incomplete data.
■ Would return to advisor/client to complete
■ Completed and checked forms are manually entered into the master file.
Source: ATB Investor Services; CEB analysis.
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ESTABLISH AUTOMATION OBJECTIVES Targeted High-Impact Improvement Zones
User Experience Operational Efficiency
Risk Management
■ Improve client experience.
■ Improve advisor experience.
■ Improve process efficiencies.
■ Reduce the time to open and maintain accounts.
■ Reduce costs.
■ Enhance compliance.
■ Reduce errors.
■ Reduce off-site storage of client/account documentation.
Source: ATB Investor Services; CEB analysis.
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INITIATE E-DOCUMENTS The First Phase Targeted Obvious Manual Events
Customer Data Captured Electronically
■ KYC data ■ Investment profile
Printed Account Agreement Forms
■ Pre-populated with electronic data
■ Barcoded for tracking ■ Upload to PDF and store electronically
Send to ReviewData and forms
sent electronically
Source: ATB Investor Services; CEB analysis.
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CLIENT CARE GROUP Phase 2: Central Advisor Support During Onboarding
Client
Advisor
Client Care Group (CCG): Specialized group of individuals who are available to assist financial advisors and their financial advisor associates with completing various administrative processes and tasks
Client Care Representative ■ Flexible aid to advisor ■ Can be videoconferenced into meeting
■ Handles tasks such as taking notes, client info, and other details
■ Lets advisor focus on investment conversation
Source: ATB Investor Services; CEB analysis.
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CONTINUOUS IMPROVEMENTE-Signatures Client Portals
Objectives
Increase user experience through the client channel with better functionality and layout.
■ Electronic communications: statements, confirmations
■ View portfolio positions. ■ View past transactions; download them to spreadsheet or money management software.
Objectives
Identify the viability of using technology to enable users to send, receive, and/or sign files electronically.
■ Internally: Associates > Associates ■ Externally: Associates > Clients
Source: ATB Investor Services; CEB analysis.
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RECOMMENDATIONS
Technology Providers
■ Work with FIs to improve their understanding of how your current technology solutions help simplify and improve their client experience.
■ Collaborate with your partners and prospects by using cases with high-impact results and determining key metrics for meeting their objectives.
Source: CEB analysis.
Financial Institutions
■ Prioritize your client relationship initiative(s) based on highest-impact interaction point(s) in the relationship life cycle.
■ Conduct end-to-end process reviews utilizing BPM expertise to achieve the greatest enterprise scale, regardless of initial implementation goals.
■ Work toward both the standardization of agreements, as well as the adoption of electronic documents, for greater automation efficiency.
■ Revisit current automated initiatives to identify missed opportunities for greater scale and elimination of systems redundancy.
■ Capitalize on executive management’s level of awareness to gain leverage for investment.