New contours for bank branches

© 2011 Wipro Ltd - Confidential

New Contours for Bank

Branches as customers get

digitally savvy

© 2010 Wipro Ltd - Confidential 2

© 2009 Wipro Ltd - Confidential 2 © 2011 Wipro Ltd - Confidential 2

3

1 Changing Trends in the Banking Industry

Survey Findings

2 Survey by Knowledge@Wharton and Wipro

Agenda

4 The Wipro View


Changing Trends in the Banking Industry


Changing trends in the banking industry

Emerging class of customers are becoming

more digitally savvy

Demand on bank branches to move beyond

conventional functions

SMBs beginning to use bank branches for sophisticated

financial advice, support and products

Emergence of business models to cater to increasingly technical

demands of the new brand of digitally savvy customers


Survey by Knowledge@Wharton and Wipro


Objective and Respondent profile

Knowlegde@Wharton and Wipro conducted in the U.S. and India to

captures the emerging business models for bank branches

Surveyed respondents

India, Europe, Middle

East, Africa,

South/Central

America , other

countries in Asia

766 total

respondents

44%

56%


Survey Findings


Survey Findings

Transactions performed in branch: U.S Vs. Ind.

• 75% of Indian respondents

required personal contact with

financial experts as compared to

44% of U.S. respondents

• 62% Indian respondents say they

use a bank branch, while 82% if U.S.

respondents use a bank branch.

Use of Banking Channels: Degree of Comfort

• ATM usage trends among Indian

and U.S. respondents were similar

with 82% and 83% of them using

ATMs respectively

• 89% U.S. respondents used

internet banking whereas the

corresponding % was only 67%

among Indian respondents.


Relevance of Bank Branches

Bank branches expected to remain relevant in the near future.

However, due to increasing networking and inter-connectedness,

customer engagement models will undergo significant transformation

with the rise of digitally savvy customers

Transactions getting digitized (Internet Banking, Mobile Banking)

and are becoming increasingly popular but customers prefer

direct branch contact for important transactions.

With growing importance of digital media, branches will focus on sales

and advisory services and move away from servicing.

Bank branches need to invest in technology up gradation to re-

envision how services are provided.


Touch Points for Digitally Savvy Customers

Information Services

Interactive solutions with touch point screens, Wi-Fi, interactive video kiosks, iPad desks

Account servicing

Self-service or assisted-self-service to reduce service delivery costs

SME Needs and Financial Counseling Integrating sales, CRM, business intelligence and core systems

Smart phones will increase usage of social media for product marketing and campaigns Trend


Customer services – Experiences

43

25

22

9

Idea of floating financial advisors using

iPad-like mobile tools in branch peak

hours

Good

Excellent

Do not care

Bad

• Respondents said they were comfortable

using self-service tools only if they were

user friendly

• Heavy dependency (41% of total

respondents) still depend on bank

branches for customer service

43

25

22

9

Current Branch Experience

Good

Excellent

Do not Care

Bad

• 43% respondents said their branch experience

was good but could be improved. This is

attributed to customer service shortcomings

• This can be improved by better customer

communication, efficiency gains through

process upgrades and training


The Wipro View


Wipro’s Service Delivery Model

Transaction Value-

Chain

Transaction Types

Channel

Technology vs. Value

Ideal Service Model

Sales

Low-Complex Originations

High-Complex Originations

New Customers

Branch, Internet Low tech – High Value Assisted Self Service

Advisory

Advice

Financial Planning

Portfolio Management

Branch Low tech – High Value

Assisted

Servicing: Transaction

Based

Customer Servicing

(Products & Accounts

Internet, Branch,

Mobile, Call

center

High tech – Low Value

Self Service

Assisted Self Service

Servicing: Information

Based

Product and Services

Information

Internet, Branch Low tech – Low Value

Self Service

Servicing Resolutions

Complaints

Exceptions

Branch, Call

Centre

Low tech – Low Value

Assisted


Finding the right Service Delivery Model

The sales function at banks lends itself to

delivery at both branches and over the

Internet, with either assisted service or

assisted self-service. These are low-tech

models, but offer high value

Transaction-based services for customer

accounts or financial products could be

rendered through a variety of channels:

branches, call centers, the Internet and

mobile banking

Information about products and services

could be provided at both branches and

over the Internet in self-service models.

This is both low-tech and offers low value

Services such as resolving customer

complaints can be provided at both

branches and through call centers in

assisted-service models


Future steps in Branch Banking – Key Takeaways

“Mobile wallet” popular among low-income group and small-vendor community as it offers facility of

managing micropayments on handsets

Social media will facilitate flagging customer needs quicker than conventional methods

Physical size of banks will shrink to save infrastructure, capital and running expenses

Branches will have more automation and integration by enabling self-service or assisted self-service

Bank branches to focus on revenue generation by cross-selling financial products and integrating business

intelligence with branch-level and customer relationship management (CRM) solutions

Leveraging virtual technology to access pools of SME customers for multiple locations

Data sources to be brought together at the individual level through analytics:

Usage of analytics to better understand needs of digital customers

Customer transaction records can be mined for insights

Identifying right products for customers based on demographic profile and peer group buying behaviour


For more details please visit the link below

http://www.wipro.com/landing-pages/Pages/branchless-banking.aspx








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© 2011 Wipro Ltd - Confidential

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New contours for bank branches

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