Utilizing Technology to Expand and Enhance the Customer Banking

Experience

Agenda

• Today’s Bank Customer

• Key Customers to Focus On

• Technologies to Differentiate the Customer Experience

• Operational Efficiencies

• Let’s Talk about Marketing and Advertising

• Regulatory and Risk Considerations

• Where Do I Go From Here

TODAY’S BANK CUSTOMER

Today’s Bank Customer

• Distrusting of Banks in General

• Has Multiple FI Relationships– Banks

– CUs

– Brokerage / Investment

• Will Shop Around for Rates, Products and Services

• Understands Products and Fee Structures

• Empowered Bank Personnel

Today’s Bank Customer

• Expects Real-Time Account Balances and Transfer Capabilities (deposits and loans)

• Access to Use Multiple TouchpointsDepending on Transaction

• Immediate and Easy Deposit Account Openings

• Quick if not Instant Loan Decisions

• Live Person When Calling

• Quick Response from E-mail, Voice or Chat

KEY CUSTOMERS TO FOCUS ON

Key Customers to Focus On

• Small Businesses– We All are Small Businesses in Today’s World

• Consulting

• Partnerships / Investments

• Home-based Businesses

• Side Jobs

– Most Don’t have Accounting Background

– Small to Medium Loan and/or LOC Needs

– Need Cash Management, Payroll and A/P Services

Key Customers to Focus On

• Elders– Need End of Life Care

• Healthcare

• Housing / Assisted Living Needs

– Who, Where and How to Leave Inheritance

– Goes Beyond Cash• House / Mortgage / Reverse Mortgage

• HSA

• Investments

• Safe Deposit Box Holdings

• Wills / Living Wills

Key Customers to Focus On

• Baby Boomers– Moving Into Final Work Years

– Retirement Needs

– Retirement Healthcare

– Restructure of Investments

– 401(k) / 403 (b) / IRAs / Social Security

– Other Considerations:• House / Mortgage / Reverse Mortgage

• Wills / Living Wills

Key Customers to Focus On

• Gen Y and Millennials– Inheritance from Elders and Baby Boomers

– Earn & Spenders

– Wants Sophisticated Touchpoints• Online Banking

• Mobile Banking

• Debit Card / POS

– Needs Education

– Charity Focused

– Social Networking

TECHNOLOGIES TO DIFFERENTIATE THE CUSTOMER EXPERIENCE

Key Technologies to Focus On

Move from Specific Technology Review

to

Customer Touchpoint Review (across systems and platforms)

Key Technologies to Focus On

• Transactions Dictate Touchpoint– Check Deposit – Branch or RDC

– Transfer – Mobile, Online or VRU

– Loan – Online or Branch

• How a New Technology of One TouchpointAffects other Touchpoints– Integration of Online Banking with Mobile

Banking

Key Technologies to Focus On

• Real-Time Interfaces across Platforms– Branch

– Online Banking

– Telephone Banking

– Mobile Banking

– ATM

– Debit

– POS

Key Technologies to Focus On

• Online Banking – Version 2.0– Cash Management / Sweeps

– External Transfers

– Bill Pay (same day?)

– Online Account Opening and Decisioning(deposits and loans)

– Aggregation (finally!)

– Payroll/ACH/Wires Submission, Approval and Processing

– Secure Messaging / Live Chat

Key Technologies to Focus On

• Mobile Banking– The Next WOW Application

– Account Balances

– Transfers

– Approvals (payroll, ACH, Wires, etc)

– P2P Payments

– Contactless Payments

– Sophisticated Alerts (e-mail, text msg, voice)

Key Technologies to Focus On

• Remote Deposit Capture– Not just for large commercial customers

anymore

– Small Business Accounts

– Mom & Pops

– Home-Based Businesses

– Retail

• Check 21 Ready ATMs (BofA, others)

OPERATIONAL EFFICIENCIES

Operational Efficiencies

• Interface vs. Integration– How many times do you have to enter the

same information across systems??

• Workflow by Customer Touchpoint– Marketing to Customer Account Opening

– Customer Account Opening to Approval

– Approval to Servicing

– Servicing to Monitoring

LET’S TALK ABOUT MARKETING AND

ADVERTISING

Marketing and Advertising

• Generic / General– Print

– Branch

– Statement Stuffers

– Radio / TV

– Social Media*

– Telephone Banking On-hold Messages

– Customers

– ATMs

Marketing and Advertising

• Specific / Targeted / Behavior– Teller*

– Online Banking Ads

– E-mail (opt in / opt out)

– Text Msg (opt in / opt out)

– ATM Messages (good or bad idea?)

Marketing and Advertising

• Social Media– Everybody’s Doing It

– Gen Y / Millennial Strategy

– Approved Messaging

– Monitoring Process

– Respond Accordingly

Marketing and Advertising

• Teller– Targeted Message

– Simple “Yes” or “No”

– No Upselling / Referral Only

– Follow-up Accordingly

– Can Increase Cross-Sell Opps by 10x

• Customers are the Best References

Marketing and Advertising

• Where Does the Data Reside?– Transactional - Core

– Behavior - ????

• Two-Way Behavior Needs

• How Many Times Should We Ask?

• Needs to Carry Through to All Touchpoints

Key Technologies to Focus On

“My Customer”

to

“Our Customer”(across touchpoints and the entire bank)

REGULATORY AND RISKCONSIDERATIONS

Regulatory and Risk Considerations

• Always Perform Risk Analysis

• Appropriate Policy and Procedures

• Monitoring Becomes Evermore Important

• New Non-Interest Income Fee Opps

• Focus on the Customer not Specific Technologies

WHERE TO START:SEVEN KEY STEPS

Where to Start

1. Know Your Strengths and Weaknesses– Profitable Customers and Products

– Customer Segmentation

– Product Segmentation

– New Products and Services to Offer

– Growth Areas (customers and products)

Where to Start

2. The Stakeholders– Exec Mgmt

• CEO, President, CFO, CIO, COO, CLO

– IT

– Marketing

– Branch

– Operations

– Board Liaison

Where to Start

3. Move from Specific Technology Review to Customer Touchpoint Review (across systems and platforms)

Where to Start

4. Review Each Touchpoint from Marketing through Monitoring– New Feature / Functionality to Take Advantage

– Add-ons Required / Needed to Existing Technologies

– Integration Points

– Real-time Interface Requirements / Needs

– New Systems Needed / Consolidation of Systems?

Where to Start

5. Prioritize Touchpoints for Bank Strategy Intersection– Align this new “Technology Plan” with the

Bank’s Strategic Plan

6. Set Realistic Action Items, Dates and Responsible Parties

7. Meet Regularly to Track Progress

Move from Specific TechnologyTo

Customer Touchpoint

QUESTIONS?

H. Terrie CloudVice President / Product Manager

O - (704) 588-4441 / C - (704) 904-5819 tcloud@cardinalsoftwareinc.com

www.cardinalsoftwareinc.com