Deutsche Bank

Deutsche Bank‘s Approach to Customer Centric Strategies

The Asian Bank Summit 2011

Deutsche Bank

Questions to think about:

Winning strategies in transaction banking and how to achieve service excellence in today’s environment

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How to differentiate

yourself from the

competition

How to attract more

customers

How to retain

customers

How to add value

How to remain

competitive

Deutsche Bank

The environment remains challenging and the competitive landscape is fierce

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Economies of scale are critical for profitability

Continued low interest rate environment

results in profit margin

compression

High ongoing technology expenses:

increasing risk and regulatory

expenses = margins

continue to be compressed

Many banks are

outsourcing some

functions to low cost sites

Banks are continuing to concentrate with fewer

providers and the market is

consolidating = Fewer Global

Providers

How to prevent yourself from

being perceived as ‘commodity

like’

Clients expectations

have increased dramatically

across all currencies

Deutsche Bank

Options for consideration

The key is selecting the right business model

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Low Cost /Low ServiceLow price e.g. call centres

High Cost / High Service/ High PriceVarious approaches

Developing a clear strategy

What markets / segments

What are the clients’ needs

How to add value

How to remain profitable

and

Deutsche Bank

Scale-Based Model: Decentralized Client Management & Customer Service; Centralized Operations & Product Development

FI FI ClientClient

Customer Service

OperationsProduct

Management

Client Management

•Centralised operations support provides economies of scale and low cost processing in a high fixed cost environment

• Drive Scale / Volume

•Low marginal costs with high cost/ income ratio

DB’s approach: A hybrid model which is customer centric at the core

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Deutsche Bank

Scale-Based Model: Decentralized Client Management & Customer Service; Centralized Service Operations & Product Development

FI FI ClientClient

Customer Service

OperationsProduct

Management

Client Management

•Front office customer service professionals located in local markets

• Added value by being the clients advocate and voice internally• In-depth knowledge of clients and their needs

DB’s approach: A hybrid model which is customer centric at the core

•Customer Service is a key to differentiate ourselves from the competition• Small team closely aligned with sales • Highly customised, personal service

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Customer Service

Deutsche Bank

DB’s approach: Hybrid Model – Three Prong Strategy

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Deutsche Bank8

Operating Strategy & Service Delivery System

•Workplace Design•Job Design•Employee Selection & Development•Employee Rewards & Recognition•Tools for Serving Customers

•Service Concept:Results for Customers

•Service designed & delivered to meet targeted customers’ needs

•Retention•Repeat Business•Referral

The Service-Profit Chain

Source: Harvard Business Review : July-August 2008

DB’s Approach: Focus on clients, automation and our team – The People

Deutsche Bank

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Employee Productivity Drives Value Value Drives Customer Satisfaction Customer Satisfaction Drives Customer Loyalty Customer Loyalty Drives Profitability and Growth

Service Profit Chain at DB

Measured by:•Market share data•External research firms

Measured by internal surveys

Measured by:•Financials

Verify what drives employee satisfaction

Statistics onstaff turnover

Deutsche Bank

Business Model Clarity

— Select the right one for your bank

— Invest wisely in new technology and your people

Develop a clear strategy for which markets, which clients and how to differentiate yourself

— Can you be all things to all clients?

— Can you add value to your clients?

— Can you be profitable and grow?

Remember to focus on your target clients’ needs-

— Listen and understand their underlying business

— Help them to be more successful

— Remember the correlation between employee satisfaction and client satisfaction

In summary, suggestions for winning strategies in transaction banking

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Deutsche Bank

Thank you

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