First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 1

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider

Angus Brown & Amanda Ritchie

Thetha - Building enduring and rewarding relationships through FNB’s Contact CentresJune 2007

START

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 2

Is there a problem to be solved?

Is there a problem to be solved?

0860 11 22 44

0860 28 82 72 0800 23 45 67CHEQUE

INSURANCEWESBANK

0860 11 22 44

INVESTMENT

0860 33 44 84

HOME LOANS011 369 2800

CREDIT CARDS

0860 13 67 39

FOREX

0861 23 30 00

eBUCKS

0861 40 40 40

PERSONAL LOANS

Call Centre - Sales & Service Technology Senior Ops Manager HR Recruitment & Training Premises

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 3

The Customer Experience - challenging!Access• A customer has to figure out which of the many access points, is the appropriate number to call for a specific query.

• Operating hours are all different

Treatment• If a customer query involves more than one FNB product or service, we are unable

to assist on first contact.

• We are unable to sell various FNB products over one telephone call.

• Staff are often unaware of marketing campaigns in other parts of FNB.

• The experience is not consistent in all the call centres (different IVR messages,structures, voices).

Resolution• Only a few call centres track resolution or have robust escalation management.

• Staff do not have suitable tools to offer valuable and quality services to customers.

The Customer Experience - challenging!

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 4

EFFICIENCY PEOPLE

Are we getting SCALE, from our Size?

Are we getting Scale from Size?

• Unable to quantify thecost of operating Call Centres• Technology - ‘we are every

vendors dream’ – Gartner• No Sharing of Specialized

Knowledge (i.e. QA, ResourcePlanning, IVR skills, Senior OpsManagement, Recruitment)

• Staff productivity:– Chunked into under-scale desks– Weak enablement by tools

and automation

• Many repeat / transferred calls • Ad-hoc approach to premises / facilities management

• No career path or staff development plans• Different HRD policies forevery one of our 10 centres

• Different recruitment agenciesand outsourcing agreements

• High attrition rates

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 5

AGREED SOLUTION

PROPOSED SOLUTION

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 6

Principles of the Solution:

Principles of the Solution:

• Provide front-line staff with a single view of the customer’s entire portfolio acrossall products and services

• Access a central store of customer activity data (the same one as Branches)

• Strive for up-sell and retention• Obtain a micro- and macro- view of costs within; and across the enterpriseboundaries

• Identify and eliminate duplicated systems, processes and functions• Increase focus – create centres of specialization

• Staff to be primarily permanent• Actively managed into their career paths inside FNB• Equity of role and skills

Enduring and Rewarding Relationships

Efficiency

People

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 7

Contact Centre Frontline (CCF)

0860 11 22 44

SELF SERVICE CONSULTANT• Balance Enquiry• Transaction History• Statement Enquiry• Transfer

• Payment• General Enquiry• Complaints• Value Adds

• High inbound volumes• Lower skill to execute

• Measured onproductivity & FCR

MA

JOR

ITY calls are general enquiries

MIN

OR

ITYcalls

escalate to specialized enquiries

HOT TRANSFERADVANCED RESOLUTION NETWORK (ARN)

HOW DOES THE ARN WORK?…Contact Centre Frontline (CCF)

PERSONAL LOANS INTERNET BANKING INVESTMENT CBS

eBUCKS HOME LOANS INCONTACT SALES NETWORK

PRICING CELLPHONE BANKING CREDIT CARDS FIRST LINK

COMPLAINTS VIRTUAL BRANCH FNB LIFE ONE ACCOUNT

CENTRE OF EXPERTISE

CARD CANCELLATIONS

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 8

• Telephony platforms; infrastructure; Contact Centrefront-line tools; PC support; etc

• DR planning and management (on-demand)

• Recruitment (Agents and Team Leaders)

• Call routing and handling (Mission Control)

• Quality Assurance

Induction and Training

• Premises and Facilities

• Resource Planning and MIS

Contact Centre Shared Service Unit

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 9

• There is no single “goal” for the project• There is no single measure of success• There are many (>50) medium-sized projects required• Over many (>10) different business units• Which have their own existing priorities

The over-arching “Programme Plan”…

WHICH?Greenfield:Dedicated teamRaise budget

Integrate:Use existing resources

Redirect existing budget

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 10

• Cannot create an “Opera”-style comprehensive plan• Cannot forecast the scale of the benefits to be harvested

over the entire duration of the programme• Focus planning on the coming 90 days• Need a strong Project Management team

This has consequences:

Engage

Plan

Change

Stabilize

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 11

We can expect from the Shared Services Unit:• Premises / facilities scalability• Scalable and stable telephony and IT platforms• Lower unit costs of IT / seat• A single source of MI, in real-time• Training and development programmes for agents / TL’s• A standardised QA process and assessments• Knowledgeable call centre risk & compliance experts

What is the benefit to FNB?

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 12

You can expect from the Contact Centre Frontline:• Consistent performance against Service Level standards• Increase in customer Self-Service usage (IVR + Speech)• Accurate tracking of costs / activity / customer / product• Daily CSI measures• Rapid-cycle feedback on new initiatives• Steady stream of high-quality, experienced service staff,

prepared for the Specialised Desks or Operations roles• Create capacity in Branch Banking• Create leads, off the back of service calls

What is the benefit to FNB?

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 13

Consultant Career Progression

• The proposed career progression allows the consultant to learn and gain confidence before moving into more skilled area. It also ensures that the consultants sees a future with FNB

Advanced ResolutionNetwork

Contact Centre

Frontline

SSU

NumberOptions

Account Services Desk

Information Desk

AdviceDesk

Specialised Desk

Admin Desk

Cancellations

Validations

ARN Desk

Home Loans

FNB Card

FNB Online

Investment

eBucks

Personal Loans

First Link

Leadership

Team Leader

CSM

Product Houses

Branches

CCF

Access LayerSupport Function

(SSU)

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 14

Drives

Drives

Supports

Enables

• A consistent and Designed Customer Experience.

• A Single View of the Customer across the enterprise.

• Standard measurement of Customer Service and Efficiencies

• Leverage Technology

• Sharing of Best Practices

• Removal of duplication of technology, costs and processes

• Embedded Disaster Recovery

Business StrategyA Constant Customer Experience

and View

Enterprise Communications StrategyIntegrate Contact Centers, Branch and Back

Office. Virtualize workforce, reporting and metrics

Technology StrategyConsolidate Systems and Extend Operations.

A Single Voice & Contact Centre backbone

Vision for Technology Solution

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 15

Spectrum of Business Impacts

Technology People Process Strategy

Flat NetworksPre-Routing EliminationServer ConsolidationErlang B PoolingToll AvoidanceCentralized AdminTrunkingConferencingUnified CommunicationSourcing OptionsMaintenanceLicense PoolingSIP Trunking

MM AccessOperational ReportingClick to CallForecastingSchedulingException ManagementProcess ConsistencyCollaborationCoaching/Development

Acquisition IntegrationSpeed to MarketOrganizational AgilityCustomer SegmentationCross/Up-SellInput CommoditizationBranding ExtensionBusiness ContinuityEntitlement

OffshoringErlang C - Agent PoolingSelf ServiceSkills UtilizationCall AvoidanceProactive ContactBranch IntegrationOutsourcer IntegrationSOHOTelecommuting

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 16

Communication StrategyRationalize the infrastructure, eliminate geographical barriers

and extend the reach of applications

Before

• Communication solutions based on geography and Business Unit

• Manual and Partial Disaster Recovery and Continuity Of Business

• Inconsistent Customer Service and client value

• Inefficient use of Assets: equipment, software licenses, adjuncts, management resources

• Low visibility into the operations due to the diversity of management information

After

• Basic communications delivered as utility. Enhanced services can now be efficiently delivered to the users and businesses, independent of geography or location

• Resiliency and Continuity of Business inherent to the system

• Reduction of costs: rationalization of vendor management; shared licences and equipment; Centers of Excellence for management and best practices; reduction of maintenance

• Full and consistent visibility

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 17

The New Contact Center Model: Centralized Applications and Distributed Access

PSTN & Mobile Network

Corporate IP LAN/WAN

IP Tel Comm Services

MultimediaMessagingServices

Call CentreServices

Conferencing &

CollaborationServices

Call Centres Regional &HQ Offices Branches

Data Centre

First National Bank – A division of FirstRand Bank Limited | An Authorised Financial Service Provider | PAGE 18

End State

Data Centre

Primary Regional Node

ProductCall Centre

Call CentreVarious

Back OfficeCampus Cluster

Branch HQ

Branch

Campus

Branches

Branches

Branches

Regional Data Centre

Regional Cluster

Office ABack Office

Office CBack OfficeOffice B

Back Office

Office BBack Office

Regional Data Centre

Regional Cluster

Office ABack Office

Office CBack Office

Branches

Branches

Branches

Branch Cluster

Messaging Service

Telephony Service

Call Centre Service Messaging

ServiceTelephony

Service

Messaging Service

Telephony Service

Messaging Service

Telephony Service

Messaging Service

Telephony Service

CampusBack Office

Campus

Campus

Campus

Back Office

Back Office

Back Office

ProductCall Centre

ProductCall Centre

ProductCall Centre

ProductCall Centre