Multi-Channel Banking
The Open Plan Approach
Gerry Allen
E-Commerce Strategy
Agenda
 Strategic Backdrop
 Open Plan - a brief overview
 Implementation of the e-channels
 Internet
 WAP
 iDTV
 The results so far
 Future plans
 Summary and Questions
Strategic Backdrop
Strategic Backdrop
 Converted to a bank in 1997
 4 million savers
 500,000 borrowers
 Needed to address:
 Pressure on margins
 Competition based on price
 New entrants
Strategic Backdrop
The back book
Revenue Per Customer
Old
Business
New
Business
PROFIT
BREAKEVEN
Open Plan - a brief overview
Open Plan Overview
100%
165%
Open Plan
Open Plan Overview
 Replace wide margin single product
relationships with narrower margin multiproduct relationships
 Provide Customised Banking:




Personal Planning and advice
An integrated set of products
Greater accessibility for customers
Help customers to see the whole financial
picture
 Customer relationship management
 High quality service delivery
Open Plan Overview
Traditional product view
Current
Account
Savings
Savings
Accounts
Savings
Accounts
Accounts
Overdraft
Credit
Card
Personal
Loans
Unit
Trusts
Insurance
Life
Assurance
Mortgage
Pension
Vehicle
Leasing
Open Plan Overview
Open Plan product view
Offset Mortgage
Current
Account
Savings
+Accounts
+Mortgage +Mortgage
Reserve
Flexible Mortgage
Current
Account
+ Mortgage +Mortgage
Reserve
Money Management
Current
Account
Sweeping
Features:
Aggregation
Savings
Accounts
Current
Account
Savings
Accounts
Savings
Accounts
Other
+Savings
Savings
Accounts
Savings
Accounts
Savings
Accounts
Savings
Accounts
Open Plan Overview
Helping Customers To See The Whole Picture
Summary Statement
 Current Account
 Savings ‘pots’
 Mortgage
 Personal Loans
 ‘reserve’ accounts
 Credit Cards
 General Insurance
 Life Insurance
 Unit Trusts
 Other Woolwich accounts
Open Plan Overview
Bricks or Clicks
Bricks
Clicks
Branch
Telephone
Credit Personal MortCard
Loans gage
Life Current
Unit
Deposits
Trusts
Assur. Account
EBank
New
Systems
Open Plan Overview
Bricks and Clicks
Bricks
Clicks
Branch
Telephone
Credit Personal MortCard
Loans gage
Life Current
Unit
Deposits
Trusts
Assur. Account
EChannels
Open Plan Overview
Bricks and/or Clicks
 Strength of Woolwich brand - did not wish
to create a competing brand
 Wanted to retain single customer set and
single customer view
 Strength of retail branch network
 Use of existing IT infrastructure
 Use of existing staff expertise
 Belief that customers require multi-
channel access to banking services
 Desire to create integrated customer
benefits
Open Plan Overview
Channel Integration
Legacy Systems
WAP
iDTV
Internet
Call
Centre
ATMs
Branch
Middleware
Implementation of the
e-channels
Implementation
Implementation
1998
1999
2000
Internet
WAP
iDTV
Incept
Pilot
Launch
2001
Implementation
 Two solutions:
Network operator solution
WIRELESS
NETWORK
INTERNET
WAP
Gateway
WTLS
BANK
SSL
Break Point
Implementation
Corporate solution
INTERNET
WTLS
WIRELESS
NETWORK
WTLS
BANK
WEB
server
WAP
Gateway
SSL
Secure Domain
Implementation
IT
Marketing
Staff
Training
Phone
Supply
Content
Customer
Support
Relationships
Communications
Operational
Fulfilment
Implementation
VS
 Viewed from 10ft
(lean back)
 Less is more on the TV
(larger fonts, less data)
 Keep it simple - (low user
 Viewed from 10 inches
(lean forward)
 As much detail as you
need
 Willing to learn (so far)
tolerance)
 Not used to interaction
 Expect interaction
The Results so Far...
The results so far…
 All targets met in 2000& 2001
 Over 1m Open Plan customers
 3+ products per customer
 25% new to Woolwich
 Remaining 75% are more profitable than
‘classic’ Woolwich customers
 High (and increasing) usage of e-
commerce channels
The results so far…
Average daily logins and Calls Handled
Calls handled
E-channel logins
The results so far…
E-Channel Activity
WAP
iDTV
Web
The results so far…
Average daily logins
Internet
iDT
V
WAP
The results so far…
Frequency of use
WAP
Web
iDTV
The results so far…
Lessons learned on WAP
 Those using the channel do so frequently
 Not just internet customers
 Seen as convenient and personal
 When the service is right it is used often
 Getting people started is a big issue
 Lots of misconceptions (esp. cost and speed)
 Usability
 Standards
The results so far…
Lessons learned on all e-channels
 All the channels are different media with different
characteristics and design points
 Individual customers have different preferences
 Most customers use multiple channels
 Effective Channel Management is essential
 Business processes must be adapted (end to end
processes are key)
 Manage the customer experience on each
individual channel and as a whole
 Release strategy is fundamental (Channel
interdependency)
Future Plans
Future Plans
 Continue learning about each e-channel and how
best to exploit it
 Continue making e-channels the ‘channels of
choice’
 Increasing effectiveness of cross-channel
management
 Increasing breadth and depth of channels
 Continue to exploit integrated channel strategy in
line with new technology and customer demands
 Call centre to contact centre
Summary
Open Plan’s successful strategy has been
built upon the concept of an integrated set
of financial products and an integrated
distribution network. It maximises the
benefits of the existing bank infrastructure
whilst fully exploiting new technology.
Gerry Allen
Gerry.Allen@Barclays.co.uk
Questions and Answers